Document:

Exhibit 4.30

 

Execution Version

 

 

Dated 9 September
2021

 

 

OPERATING LEASE AGREEMENT

 

relating to
one (1) Boeing 787-9 Aircraft

 with Manufacturer Serial Number 38891

 

between

 

AVOLON AEROSPACE AOE 147 LIMITED

 

as Lessor

 

and

 

LATAM AIRLINES GROUP
S.A.

 

as Lessee

 

     

     

    

 

CONTENTS

 

	Clause	 	Page
	 	 	 
	1.	Definitions and Interpretation	1
	2.	Agreement to Lease	1
	3.	Representations and Warranties	3
	4.	Delivery and Acceptance	6
	5.	Payments	8
	6.	Absolute and Unconditional Obligations	12
	7.	Lessor’s Obligations	13
	8.	Information	14
	9.	Control of the Aircraft	15
	10.	Engines and Parts	18
	11.	Registration, Certification and Filings	24
	12.	Title Protection and Operation	27
	13.	Technical	31
	14.	Indemnities	36
	15.	Total Loss	43
	16.	Requisition	44
	17.	Insurance	45
	18.	Return of the Aircraft	48
	19.	Events of Default	50
	20.	Remedies	57
	21.	Illegality	59
	22.	Disclaimer	61
	23.	Assignment and Transfer	62
	24.	Miscellaneous	71
	25.	Law	74
	26.	Confidentiality	77
	27.	Third Party Rights	77
	28.	TERMINATION DUE TO CHAPTER 11 CASES	 77

 

    	 	 	Avolon LATAM B787 Lease –
	 	– i –	Aircraft MSN 38891

     

    

 

	Schedule 1	Definitions and Interpretation	79
	Part A	Definitions	79
	Part B	Interpretation	101
	Schedule 2	Aircraft Particulars	102
	Schedule 3	Conditions Precedent and Conditions Subsequent	103
	Part A	Lessee Conditions Precedent	103
	Part B	Lessor Conditions Precedent	106
	Part C	Lessee Conditions Subsequent	108
	Schedule 4	109	109
	Part A	Aircraft Specification	109
	Part B	Delivery Procedure	110
	Part C	Delivery Condition	111
	Schedule 5	Form of Acceptance Certificate	123
	Schedule 6	Form of Redelivery Acceptance Certificate	126
	Schedule 7	Payments	129
	Part A	Rent	129
	Part B	End of Lease Maintenance Payment Adjustments	132
	Schedule 8	Reporting & Notices	138
	Part A	Form of Technical Report	138
	Part B	Notices	139
	Schedule 9	Insurance Requirements	140
	Schedule 10	Redelivery	145
	Part A	Redelivery Procedure	145
	Part B	Redelivery Condition	159
	Schedule 11	Subleasing Requirements	166
	Part A	Subleasing Requirements	166 
	Part B	Leasing Affiliates	174
	Execution Page Lease Agreement – MSN 38891	175

 

    	 	 	Avolon LATAM B787 Lease –
	 	– ii –	Aircraft MSN 38891

     

    

 

OPERATING LEASE AGREEMENT dated 9 September 2021
(this “Agreement”)

 

BETWEEN:

 

	(1)	AVOLON AEROSPACE AOE 147 LIMITED, a company organised and existing under the laws of the Cayman
Islands, whose registered office is at PO Box 309, Ugland House, Grand Cayman KY1-1104, Cayman Islands and principal place of business
is at Number One Ballsbridge, Building 1, Shelbourne Road, Ballsbridge, Dublin 4, Ireland (the “Lessor”); and

 

	(2)	LATAM AIRLINES GROUP S.A., a sociedad anónima incorporated and existing under the laws of
Chile whose registered office and principal place of business is at Edificio Huidobro, Avenida Presidente Riesco 5711, 20th
Floor, Las Condes, Santiago, Chile (the “Lessee”).

 

IT IS AGREED:

 

	1.	DEFINITIONS AND INTERPRETATION

 

In this Agreement capitalised words
and expressions have the meanings set out in Part A of Schedule 1 (Definitions). The rules of interpretation and construction set
out in Part B of Schedule 1 (Interpretation) shall apply to this Agreement.

 

	2.	AGREEMENT TO LEASE

 

	2.1	Lease

 

Subject to the terms of this Agreement,
the Lessor agrees to lease the Aircraft to the Lessee and the Lessee agrees to take the Aircraft on lease for the Lease Period. This Agreement
is effective on the date shown at the beginning of this Agreement but:

REDACTED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	 	Avolon LATAM B787 Lease –
	 	– 1 –	Aircraft MSN 38891

     

    

 

	2.2	No Default

 

The Lessor will not have to deliver
the Aircraft to the Lessee if, on the Scheduled Delivery Date, a Default has occurred and is continuing or would occur as a result of
Delivery.

 

	2.3	Lessee’s obligations

 

The Lessor will not be responsible
for any delay in Delivery if the Lessee fails to satisfy all its obligations listed in Part A of Schedule 3 (Lessee Conditions Precedent)
on the required date.

 

	2.4	Deferral of conditions precedent

 

		2.4.1	If the Lessor delivers the Aircraft to the Lessee even though it has not
received all the documents and evidence referred to in Clause 2.1.1 on or prior to the date specified, the Lessor may waive or defer receipt
of any such document and evidence not received (a) that is within the reasonable control of the Lessee listed in Part A of Schedule 3
(Lessee Conditions Precedent) on such specific terms and in the Lessor’s sole discretion and (b) that is not within the reasonable
control of the Lessee listed in Part A of Schedule 3 (Lessee Conditions Precedent) for any period agreed between the Lessor and
the Lessee (each acting reasonably) taking into account the nature of any such document and evidence not received by the Lessor.

 

		2.4.2	If the Lessee accepts delivery of the Aircraft even though it has not received
all the documents and evidence referred to in Clause 2.1.2 on or prior to the date specified, the Lessee may waive or defer receipt of
any such document and evidence not received (a) that is within the reasonable control of the Lessor listed in Part B of Schedule 3 (Lessor
Conditions Precedent) on such specific terms and in the Lessee’s sole discretion and (b) that is not within the reasonable control
of the Lessor listed in Part B of Schedule 3 (Lessor Conditions Precedent) for any period agreed between the Lessee and the Lessor
(each acting reasonably) taking into account the nature of any such document and evidence not received by the Lessee.

 

	2.5	Waiver of Default

 

The Lessor reserves all of its rights
under this Agreement and pursuant to all Applicable Regulations in connection with any Event of Default even if it delivers the Aircraft
to the Lessee whilst a Default is continuing.

 

	2.6	Conditions subsequent

 

The Lessee will perform all of the
actions and provide to the Lessor each of the documents and evidence listed in 0 of Schedule 3 (Lessee Conditions Subsequent) in
form and substance satisfactory to the Lessor by no later than the dates specified in 0 of Schedule 3 (Lessee Conditions Subsequent).

 

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	 	– 2 –	Aircraft MSN 38891

     

    

 

	3.	REPRESENTATIONS AND WARRANTIES

 

	3.1	Representations and warranties

 

Each party is making the statements
in this Clause 3 in order to induce the other party to enter into this Agreement. Each party understands that the statements it makes
in this Agreement must be true when this Agreement is signed and on the Delivery Date in accordance with Clause 3.4 (Survival of representations
and warranties). On this basis each party represents and warrants to the other that:

 

		3.1.1	in the case of the Lessor, it has been properly formed as a company with
limited liability and, in the case of the Lessee, it has been properly formed as a sociedad anónima with limited liability
and since the date of its formation, it has been maintained in accordance with all Applicable Regulations;

 

		3.1.2	in entering into each Transaction Document to which it is a party and performing
its obligations, it does not contravene, nor in respect of any Transaction Document to which it is a party which is entered into after
the date of this Agreement will it contravene, any Applicable Regulations;

 

		3.1.3	all necessary corporate actions have been taken and all authorisations have
been obtained for the execution by it of each Transaction Document to which it is a party and the performance of its obligations thereunder,
it has the power to enter into the Transaction Documents to which it is a party and this Agreement and each of the other Transaction Documents
to which it is a party has been or, in the case of any other Transaction Document entered into after the date of this Agreement, will
be duly executed and delivered by it; and

 

		3.1.4	its obligations under each Transaction Document to which it is a party are,
or if any Transaction Document to which it is a party is entered into after the date of this Agreement will be, from the date of execution
of such Transaction Document to which it is a party, legal, valid and binding obligations and enforceable against it in accordance with
their respective terms (except as enforceability may be limited by (i) applicable bankruptcy, insolvency, examination, reorganisation
or similar laws, and (ii) general principles of equity).

 

	3.2	Lessee’s representations and warranties

 

The Lessee further represents and warrants
to the Lessor that:

 

REDACTED

 

 

 

 

 

 

 

 

 

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REDACTED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	3.3	Lessor’s representations and warranties

 

The Lessor further represents and warrants that:

 

		3.3.1	it is subject to civil commercial law with respect to its obligations under
the Transaction Documents to which it is a party, neither it nor any of its assets is entitled to any right of immunity and the entry
into and performance by it of the Transaction Documents to which it is a party constitute private and commercial acts;

 

		3.3.2	the choice by the Lessor of English law or New York law (as the case may
be) to govern the Transaction Documents expressed to be governed by such laws and the submission by the Lessor to the jurisdiction of
the English courts or the courts of New York (as the case may be and as provided in Clause 25.2 (Jurisdiction)) is valid
and binding on the Lessor;

 

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		3.3.3	it is not involved in any litigation or other dispute nor is there any claim
pending against it, the outcome of which would, if determined against the Lessor, adversely affect its financial condition in any material
respect or its ability to perform its obligations under this Agreement or any other Transaction Document to which it is a party;

 

		3.3.4	its obligations under the Transaction Documents to which it is a party rank
at least pari passu with all of its present and future unsecured and unsubordinated obligations (including contingent obligations)
with the exception of such obligations as are mandatorily preferred by law and not by virtue of any contract;

 

		3.3.5	on the Delivery Date, the Lessor Guarantor will have a Tangible Net Worth
of at least $25,000,000;

 

		3.3.6	no Security Interest has been created by the Lessor over the Aircraft, save
for those Security Interests created pursuant to the Financing Documents and, to the best of the Lessor’s knowledge, there are no
Security Interests existing as of the Delivery Date which relate to the operation of the Aircraft under the Previous Lease;

 

		3.3.7	neither the Lessor nor, to the Lessor’s knowledge, any director, officer
or employee of the Lessor, has failed to comply with any Anti-Corruption Laws;

 

		3.3.8	the Previous Lease has been duly terminated;

 

		3.3.9	it has instituted and maintains policies and procedures designed to prevent
bribery and corruption by the Lessor;

 

		3.3.10	it is conducting its operations at all times in material compliance with
Anti- Money Laundering Laws and no action, suit or proceeding by or before any court or governmental or regulatory agency, authority or
body or any arbitrator involving the Lessor with respect to the Anti-Money Laundering Laws is pending or, to its knowledge, threatened;
and

 

		3.3.11	the Aircraft has not suffered a Total Loss (or any event which, with the
lapse of time would constitute a Total Loss) or any unrepaired damage, the cost of which to repair exceeds the Partial Loss Threshold.

 

	3.4	Survival of representations and warranties

 

The representations and warranties
given by (a) the Lessor in Clause 3.1 (Representations and warranties) and Clause 3.3 (Lessor’s representations and warranties)
and (b) the Lessee in Clause 3.1 (Representations and warranties) and Clause 3.2 (Lessee’s representations and warranties)
shall survive the execution of this Agreement and shall be deemed to be repeated by the Lessor or, the Lessee, as the case may be, on
the Delivery Date with reference to the facts and circumstances subsisting on such date.

 

	4.	DELIVERY AND ACCEPTANCE

 

	4.1	Delivery and acceptance

 

The Lessor shall deliver the Aircraft
to the Lessee at the Delivery Location in accordance with the procedure set out in Part B of Schedule 4 (Delivery Procedure) and
in compliance with the Aircraft specification set out in Schedule 2 (Aircraft Particulars) and Schedule 4Part A (Aircraft Specification)
and the delivery conditions set out in Part C of Schedule 4 (Delivery Condition). Subject to the terms of this Agreement, the Lessee
shall, if the Aircraft complies with the Aircraft specification set out in Schedule 2 (Aircraft Particulars) and Schedule 4Part
A (Aircraft Specification) and the delivery conditions set out in Part C of Schedule 4 (Delivery Condition), accept the
Aircraft when tendered for Delivery, at which time the leasing of the Aircraft will commence.

 

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	 	– 6 –	Aircraft MSN 38891

     

    

 

	4.2	Acceptance Certificate

 

		4.2.1	The Lessee shall evidence its acceptance of the Aircraft by executing the
Acceptance Certificate and delivering it to the Lessor.

 

		4.2.2	Execution and delivery by the Lessee of the Acceptance Certificate will
be conclusive proof as between the Lessor and the Lessee that the Lessee has examined and investigated the Aircraft, that the Aircraft
and the Aircraft Documents are satisfactory to the Lessee in all respects and for all purposes under this Agreement and that the Lessee
has irrevocably and unconditionally accepted the Aircraft for lease under this Agreement without any reservations or exceptions whatsoever,
except for any reservations or exceptions which are expressly agreed between the Lessor and the Lessee and are accordingly referenced
in the Acceptance Certificate.

 

	4.3	Risk

 

As from Delivery, the Lessee shall bear all risks associated
with any loss of or damage to the Aircraft until Redelivery.

 

	4.4	Failure to take Delivery

REDACTED

 

 

 

 

 

 

 

 

 

 

 

 

	4.5	Delayed Delivery

REDACTED

 

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	 	– 7 –	Aircraft MSN 38891

     

    

 

REDACTED

 

 

 

 

 

 

 

 

 

 

 

 

 

	5.	4.4.1FAILURE TO TAKE DELIVERY4.5.1PAYMENTS

 

REDACTED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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	6.	ABSOLUTE AND UNCONDITIONAL OBLIGATIONS

 

The Lessee’s obligations to pay
Rent, Security Deposit, Agreed Value and any other amounts due under this Agreement and to perform all of its other obligations under
this Agreement and any other Transaction Document, are absolute and unconditional, no matter what happens and no matter how fundamental
or unforeseen the event and regardless of any partial or total failure of consideration, including without limitation:

 

		6.1.1	any unavailability of the Aircraft for any reason, including, but not limited
to, any defect in the airworthiness, merchantability, satisfactory condition, fitness for any purpose, condition, design or operation
of any kind or nature of the Aircraft; or

 

		6.1.2	the ineligibility of the Aircraft for any particular use or trade, or for
registration or documentation under the laws of any relevant jurisdiction; or

		6.1.3	the Total Loss (except as provided hereunder upon payment of the Agreed
Value and all other amounts (including Rent) then due and payable hereunder) of, or any damage to, the Aircraft, Airframe or any Engine;
or

		6.1.4	any set off, counterclaim, recoupment, withholding defence or other rights
which the Lessee may have against the Owner, the Lessor, any Financier or any other person; or

 

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	 	– 12 –	Aircraft MSN 38891

     

    

 

		6.1.5	any failure or delay on the part of any party hereto in performing or complying
with any of the terms or conditions of this Agreement or any other Transaction Document; or

 

		6.1.6	any insolvency, bankruptcy, administration, reorganisation, arrangement,
readjustment of debt, dissolution, liquidation or similar proceedings by or against the Owner, the Lessor, any Financier or the Lessee,
including the Chapter 11 Cases; or

 

		6.1.7	any lack of due authorisation of, or other defect in, this Agreement or
any other Transaction Document,

 

provided that nothing in this
Clause 6 will be construed to extinguish or otherwise limit the Lessee’s right to institute separate legal proceedings for the claim
of damages and other relief from courts against the Lessor or any other person in the event of the Lessor’s or such other person’s
breach of this Agreement or the other Transaction Documents.

 

	7.	LESSOR’S OBLIGATIONS

 

	7.1	Quiet enjoyment

 

So long as no Event of Default has
occurred and is continuing, the Lessor will not, and will procure that neither the Owner, nor any person claiming by or through the Owner,
will interfere with the Lessee’s right or, if the Aircraft is subleased or interchanged pursuant to a Permitted Sublease, the Permitted
Sublessee’s right to have quiet use, enjoyment and possession of the Aircraft during the Lease Period. The exercise by the Lessor
of its rights under or in connection with this Agreement or any other Transaction Document will not constitute such interference.

 

	7.2	Warranties

 

		7.2.1	The Lessee and, if the Aircraft is subleased pursuant to a Permitted Sublease,
the Permitted Sublessee shall, during the Lease Period and for so long as no Event of Default has occurred and is continuing, enjoy the
benefit of the Airframe Warranties and the Engine Warranties pursuant to the terms of the Airframe Warranties Agreement and the Engine
Warranties Agreement respectively.

 

		7.2.2	Save as provided below, during the Lease Period, the Lessor will allow the
Lessee and, if the Aircraft is subleased pursuant to a Permitted Sublease, the Permitted Sublessee to have the use and benefit of any
other existing and transferable manufacturer, vendor or supplier warranties relating to the Aircraft in each case subject to any necessary
consents of the relevant manufacturer, vendor or supplier. The Lessor agrees to take such steps at the cost and expense of the Lessee,
as are reasonably necessary to enable the Lessee and, if the Aircraft is subleased pursuant to a Permitted Sublease, the Permitted Sublessee
to receive the benefits of such warranties. The Lessee and, if the Aircraft is subleased pursuant to a Permitted Sublease, the Permitted
Sublessee will have the benefit of any such warranties subject to any terms that the relevant manufacturer, vendor or supplier may require
and the Lessee will and, if the Aircraft is subleased pursuant to a Permitted Sublease, will procure that the Permitted Sublessee will
enter into such agreements as may be required with such relevant manufacturer, vendor
or supplier. The Lessee will and, if the Aircraft is subleased pursuant to a Permitted Sublease, will procure that the Permitted Sublessee
will diligently and promptly pursue any valid claims that it may have against any such relevant manufacturer, vendor or supplier and will
give the Lessor prompt written notice of the same. The Lessee agrees to use and, if the Aircraft is subleased pursuant to a Permitted
Sublease, agrees to procure that the Permitted Sublessee uses any amounts received in relation to any claim under any such warranties
only for the purposes of repairing or replacing the Airframe, Engine or Part which gave rise to the relevant warranty claim (except to
the extent that any such amount includes additional sums payable to the Lessee as compensation and/or reimbursement of transportation
costs).

 

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	 	– 13 –	Aircraft MSN 38891

     

    

  

		7.2.3	On the Expiry Date (or on such earlier date as the Lessor may specify by
notice in writing if an Event of Default has occurred and is continuing), the Lessee’s rights under the warranties referred to in
Clause 7.2.2 (including the Lessee’s rights to pursue claims and receive payments thereunder) shall immediately revert to the Lessor.

 

		7.2.4	On the Expiry Date, the Lessee will at its own cost and expense, take all
steps necessary to ensure that the benefit of any unexpired and transferable warranties relating to the Aircraft is vested in the Lessor
or its nominee.

 

	8.	INFORMATION

 

	8.1	Financial information

 

REDACTED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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REDACTED

 

 

 

 

 

 

 

 

  

 

 

 

 

	8.2	Technical information

 

REDACTED

 

 

 

 

	8.3	Other information

 

REDACTED

 

 

 

 

 

 

 

 

 

 

	9.	CONTROL OF THE AIRCRAFT

 

	9.1	No disposal or encumbrance

 

The Lessee shall not, and shall not attempt or hold
itself out as having any power to, sell, charge, lease (other than as expressly permitted by Clauses 9.3 (Charter or wet
leasing) and 9.4 (Permitted subleasing) or otherwise dispose of or encumber the Aircraft or any part thereof.

 

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	9.2	Subleasing

 

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	10.	ENGINES AND PARTS

 

	10.1	Engine pooling

 

The Lessee or any Leasing Affiliate
in operational control of the Aircraft may, without the prior written consent of the Lessor or any other person, remove an Engine (which
for the avoidance of doubt, includes any Lessor Temporary Engine), from the Aircraft and install such Engine on an airframe which is either
owned by or leased to, and operated, by the Lessee or such Leasing Affiliate (as the case may be) provided that:

 

		10.1.1	such airframe is a Boeing 787 family aircraft;

 

		10.1.2	the Engine is compatible with the airframe upon which it is installed;

 

		10.1.3	the Owner retains ownership of the Engine and the rights of the Owner, the
Lessor or any Financier are not prejudiced as a result of such installation on such airframe.

 

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		10.1.4	no Event of Default has occurred and is continuing;

 

		10.1.5	neither:

 

		(a)	the provisions of any Applicable Regulations; nor

 

		(b)	the terms of any lease or other agreement or Security Interest to which such airframe is subject,

 

prohibit such installation or will
have the effect at any time of divesting or impairing the title and interests of the Owner as owner of the Engine and/or the Lessor as
lessor of the Engine, and/or the Financiers under the Security Interests created by the Financing Documents in respect of the Engine;

 

		10.1.6	the terms of any lease, agreement or Security Interest to which such airframe
is subject do not entitle the relevant lessor, owner, seller or the holder of any Security Interest under such lease, agreement or Security
Interest nor their successors or assigns to acquire, as against the Lessor, any right, title or interest in an Engine as a result of such
Engine being installed on such airframe;

 

		10.1.7	such installation is permitted by the Aviation Authority;

 

		10.1.8	the terms of this Agreement (including Insurance) shall continue to apply
to the Engine as if it were still installed on the Airframe; and

 

		10.1.9	the Engine (or a Replacement Engine that replaces it in accordance with Clause

10.3 (Permanent replacement of Engines and Parts))
is reinstalled on the Airframe in accordance with this Agreement on or prior to the Expiry Date.

 

	10.2	Temporary removal and replacement of Engines and Parts

 

		10.2.1	Subject to sub-clause 10.2.2 below, the Lessee may not install or permit
to be installed any engine or part on the Aircraft other than an Engine, (which for the avoidance of doubt, includes any Lessor Temporary
Engine), or a Part without the prior written consent of the Lessor (such consent not to be unreasonably withheld or delayed).

 

		10.2.2	The Lessee or any Leasing Affiliate in operational control of the Aircraft
may remove or permit the removal of any Engine or Part from the Aircraft in accordance with this Agreement and contemporaneously install
or permit the installation of an engine (a "Temporary Engine") or part either owned by or leased to, and operated, by
the Lessee or such Leasing Affiliate, as the case may be, (which is not an Engine or Part but which in the case of an engine is of the
same model as the removed Engine or, at the Lessee's option, an improved or advanced version. If the same or a more advanced engine version
is not available, the Lessee shall be permitted to install a less advanced version provided it is suitable for installation on the Airframe
and permitted by the Manufacturer) without the prior written consent of the Lessor, provided that:

 

		(a)	no Event of Default has occurred and is continuing;

 

		(b)	such installation is permitted by the Aviation Authority;

 

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		(c)	in the case of a Temporary Engine it is suitable for installation and use on the Airframe without impairing
the value or utility of the Airframe (and, for the avoidance of doubt, not the value or utility of the Temporary Engine);

 

		(d)	such removed Engine or Part is reinstalled on the Airframe as soon as reasonably practicable and in any
event prior to the Expiry Date unless such Engine or Part has been permanently replaced by a Replacement Engine or Replacement Part, as
the case may be, in accordance with Clause 10.3 (Permanent replacement of Engines and Parts);

 

		(e)	such installation does not have any adverse effect on the insurance coverage of the Aircraft as required
pursuant to Clause 17 (Insurance); and

 

		(f)	such installation is recorded as such in the Aircraft Documents.

 

		10.2.3	The Lessee shall ensure that title to any Engine or Part removed from the
Aircraft shall remain vested in the Owner at all times and shall not take any steps which could reasonably be expected to prejudice the
Lessor's, the Owner's or any Financier's rights in that Engine or Part or lead any third party to believe that the Engine or Part is the
property of any person other than the Owner. The Lessor acknowledges and agrees for the benefit of the Lessee and any other person with
an interest in any relevant Temporary Engine or temporary part that (i) none of the Lessor, the Owner nor any Financier will acquire any
right, title or interest in any Temporary Engine or temporary part by reason of such Temporary Engine or temporary part being installed
on the Aircraft and (ii) the Lessor, the Owner and any Financier shall recognise the rights of the relevant owner and any other person
with an interest in such Temporary Engine or temporary part.

 

		10.2.4	The Lessee shall ensure that any Engine or Part which is removed from the
Aircraft and which is not installed on an or another aircraft in accordance with Clause 10.1 (Engine pooling) is:
	 	 	 

		(a)	safely stored, repaired and maintained in accordance with this Agreement free from any Security Interests
(other than Permitted Security Interests);

 

		(b)	subject to separate insurance cover while removed in accordance with Clause 17 (Insurance) and
(in the case of an Engine), without prejudice to the foregoing, the Lessee shall notify the insurers promptly of its removal and comply
with any instructions of the insurers in relation to it; and

 

		(c)	if unserviceable, as soon as practicable placed with a Maintenance Performer for progressive repair.

 

	10.3	Permanent replacement of Engines and Parts

 

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	11.	REGISTRATION, CERTIFICATION AND FILINGS

 

	11.1	Registration with the Aviation Authority

 

		11.1.1	The Lessee will, save as provided in Schedule 11 (Subleasing Requirements),
maintain the registration of the Aircraft with the Aviation Authority throughout the Lease Period in full compliance with Applicable Regulations
and will not do or permit to be done anything which could reasonably be expected to adversely affect such registration. All expenses associated
with such registration shall be at the sole cost, expense and responsibility of the Lessee.

 

		11.1.2	Throughout the Lease Period, the Lessee will:

 

		(a)	if required under Applicable Regulations, at its own cost, (i) record on each relevant register of the
Aviation Authority that the Owner is the owner of the Aircraft and (ii) file this Agreement (or their main details) on that register;

 

		(b)	if permitted under Applicable Regulations, at its own cost, make any changes to any registration or filing
that may be necessary or advisable to take account of any change in any modification to the Aircraft (such as the permanent replacement
of any Engine or Part) in accordance with this Agreement or of any change in any Applicable Regulation; and

 

		(c)	to the extent permitted by Applicable Regulations, at the Lessor's cost, (i) co-operate with the Lessor
(A) filing the Financiers’ Security Interests created by the Financing Documents in the Aircraft on each relevant register of the
Aviation Authority and, if applicable, the relevant register of the aviation authority of the Habitual Base, and (B) recording on each
relevant register of the Aviation Authority that the Security Trustee is the security trustee in respect of the financing of the Aircraft
and (ii) make any changes to any registration or filing that may be necessary or advisable to take account of any change in the ownership
of the Aircraft and co- operate with the Lessor filing in relation to the interests of any Financier in the Aircraft, save where such
change in registration of filing is required as a result of a change of law in the State of Registration or as a result of any subleasing
or interchange of the Aircraft, in which case such change shall be made at the Lessee's cost.

 

		11.1.3	Notwithstanding Clause 11.1.2, if the Lessee is the only party with the
legal standing or practical ability to file any Financiers’ Security Interests, and/or record on each relevant register of the Aviation
Authority that the Security Trustee is the security trustee in respect of the financing of the Aircraft, the Lessee agrees to make such
filing and/or recording provided that the Lessor provides the Lessee with all relevant documentation in order to enable the Lessee to
make such filing and/or recording.

 

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	 	– 24 –	Aircraft MSN 38891

     

    

 

	11.2	Certification

 

The Lessee will take all actions needed
to ensure that a current certificate of airworthiness (in the appropriate category for the nature of the operations of the Aircraft) is
maintained in full effect throughout the Lease Period except if such current certificate of airworthiness is withdrawn by the Aviation
Authority when maintenance, overhaul or repair is being carried out on the Aircraft in accordance with the provisions of this Agreement
provided that such certificate of airworthiness is immediately reinstated after such maintenance, overhaul or repair has been effected
to the Aircraft.

 

	11.3	Filings and documentary Taxes

 

The Lessee will file or record each
of the Transaction Documents and Financing Documents which can be filed or recorded by the Lessee and will pay any stamp duty or other
documentary Taxes to which any of the Transaction Documents (but excluding any Financing Documents) are or may become subject, in each
case punctually and as is necessary under Applicable Regulations.

 

	11.4	Cape Town Convention

 

		11.4.1	If the state in which the Lessee and/or a Permitted Sublessee is situated,
the location of the Lessee's or any Permitted Sublessee's principal place of business or registered office, or the State of Registration
has, or at any time brings into force, any legislative or other provisions giving effect to the Cape Town Convention and/or the Protocol,
the Lessee (i) shall consent to the registration of any international interests or prospective international interests with the International
Registry with respect to the Aircraft and/or any Engine and constituted by this Agreement and (ii) shall (and shall procure that any Permitted
Sublessee shall) from time to time, do or cause to be done (and consents to the Lessor, the Owner or any Financier doing or causing to
be done) any and all acts and things capable of being done by the Lessee or any Permitted Sublessee which may be required (in the determination
of the Lessor (acting reasonably)) to ensure that the Owner, the Lessor and any Financier has the full benefit of the Cape Town Convention
and/or the Protocol in connection with the Aircraft and any Engine, including:

 

		(a)	any matters connected with registering, perfecting and/or preserving any international interest(s) vested
in the name of the Owner, the Lessor or any Financier with respect to the Aircraft and/or any Engine and constituted by this Agreement
and any interests arising out of any Permitted Sublease, including any applicable certified designee letter and, if required and to the
extent available, obtaining any authorising entry point codes from the State of Registration necessary to effectuate the foregoing;

 

		(b)	constituting any international interest(s) to be vested in the Security Trustee, the Owner or the Lessor
with respect to the Aircraft and/or any Engine in connection with this Agreement and any interests arising out of any Permitted Sublease,
including any applicable certified designee letter;

 

    	 	 	Avolon LATAM B787 Lease –
	 	– 25 –	Aircraft MSN 38891

     

    

 

		(c)	entry into agreements (subordination or otherwise) to protect the priority of any international interest(s)
referred to in the foregoing paragraph;

 

		(d)	agreeing to consenting to and acknowledging any assignment the Lessor enters, or has entered, into with
a Financier in connection with this Agreement;

 

		(e)	excluding in writing the application of any provisions of the Cape Town Convention and/or Protocol that
the Lessor may deem desirable in connection with the foregoing;

 

		(f)	granting the right to discharge in respect of an international interest to the Lessor or, at the Lessor’s
direction, to a Financier;

 

		(g)	executing or procuring that the Permitted Sublessee executes an IDERA in favour of the Lessor, or if required
by the Lessor, the Security Trustee, and submitting the same to the Aviation Authority for recordation and providing the recorded IDERA
to the Lessor, or if required by the Lessor, the Owner or the Security Trustee;

 

		(h)	not registering, or consenting to the registration of, any conflicting interests (whether or not taking
priority over the Owner’s, the Lessor’s or any Financier’s international interests) at the International Registry without
the Lessor’s and the Security Trustee’s prior written consent (it being understood that the Lessor shall be responsible for
liaising with the Security Trustee in relation to any requested consent); and

 

		(i)	not executing or submitting or permitting a Permitted Sublessee to execute or submit an IDERA for recordation
in favour of any creditor other than the Lessor or the Security Trustee without the Lessor’s and the Security Trustee’s prior
written consent (it being understood that the Lessor shall be responsible for liaising with the Security Trustee in relation to any requested
consent).

 

		11.4.2	The Lessee shall not permit any person to register a prospective international
interest, international interest or national interest at the International Registry without the prior written consent of the Lessor and
the Security Trustee (it being understood that the Lessor shall be responsible for liaising with the Security Trustee in relation to any
requested consent) except for any such interests created where:

 

		(a)	the Lessee is the debtor and one of the Lessor, the Owner or the Security Trustee is the creditor; or

 

		(b)	the Lessor is the debtor and one of the Owner or the Security Trustee is the creditor; or

 

		(c)	the Owner is the debtor and one of the Lessor, the Owner or the Security Trustee is the creditor.

 

		11.4.3	The Lessee will promptly notify the Lessor on becoming aware of the registration
of any non-consensual right or interest at the International Registry against the Airframe or any Engine
and take all steps necessary to procure the discharge and de-registration of such interest.

 

    	 	 	Avolon LATAM B787 Lease –
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		11.4.4	In this Clause 11.4 (Cape Town Convention) and Schedule 11 (Subleasing
Requirements):

 

		(a)	the following expressions shall have the respective meanings given to them in Article 1 of the Cape Town
Convention:

 

		(i)	airframe;

 

		(ii)	creditor;

 

		(iii)	debtor;

 

		(iv)	international interest;

 

		(v)	International Registry;

 

		(vi)	national interests;

 

		(vii)	non-consensual right or interest;

 

		(viii)	prospective international interest; and

 

		(ix)	State of registry; and

 

		(b)	“state in which the Lessee is situated” shall be construed in accordance with Article
4 of the Cape Town Convention.

 

		12.	TITLE PROTECTION AND OPERATION

 

		12.1	Title protection

 

Throughout the Lease Period, the Lessee will at its own
cost:

 

		12.1.1	install and maintain or procure that there are installed and maintained
fireproof nameplates not less than 7cm by 5cm affixed in a prominent position in the cockpit or cabin of the Aircraft and on each Engine
showing the following:

 

“THIS [AIRCRAFT][ENGINE] IS OWNED
BY AVOLON AEROSPACE AOE 147 LIMITED, IS MORTGAGED TO [WILMINGTON TRUST (LONDON) LIMITED] AND IS LEASED TO LATAM AIRLINES GROUP

S.A. AND IS OPERATED BY LATAM AIRLINES
GROUP S.A. OR ONE OF ITS LEASING AFFILIATES AND MAY NOT BE OPERATED BY ANY OTHER PERSON WITHOUT THE PRIOR WRITTEN CONSENT OF AVOLON AEROSPACE
AOE 147 LIMITED”;

 

		12.1.2	take all reasonable steps to ensure that the interests of the Lessor, the
Owner and, if applicable, the Financiers in the Aircraft are, when appropriate, made known to third parties dealing with the Lessee and
the Aircraft and the Lessee will not:

 

		(a)	hold itself out as owner of the Aircraft or as having an economic interest in it equivalent to ownership
(whether to obtain a particular tax treatment or otherwise);

 

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		(b)	take or refrain from any action if, as a consequence, the rights of the Lessor, the Owner or any Financier
in the Aircraft or the validity, enforceability or priority of this Agreement or of any of the Financing Documents could reasonably be
expected to be jeopardised;

 

		(c)	represent or hold out to third parties, the Lessor, the Owner or any Financier as carrying goods or passengers
on the Aircraft or as being in any way associated with or responsible for the business activities of the Lessee;

 

		(d)	permit the Aircraft or any interest of the Lessor, the Owner or of any Financier in it, or any party’s
rights under this Agreement, to become or remain subject to any Security Interest (other than a Permitted Security Interest); or

 

		(e)	pledge the credit of the Lessor, the Owner or any Financier.

 

	12.2	Security Interests

 

		12.2.1	As soon as reasonably practicable the Lessee will take any action that may
be necessary to discharge any Security Interest described in paragraph (a) or (b) of the definition of Permitted Security Interests.

 

		12.2.2	The Lessee will not (otherwise than as expressly required, permitted or
otherwise contemplated by the Transaction Documents) do anything or take any action or knowingly omit to take any action which has or
could reasonably be expected to have the effect of prejudicing the first priority nature of any Security Interests created pursuant to
the Financing Documents.

 

	12.3	Lessee’s rights

 

The Lessee shall have no right, title
or interest in or to any part of the Aircraft except the rights expressly set out in this Agreement, it being expressly agreed and acknowledged
by the Lessee that title to the Aircraft shall remain vested in the Owner subject to the Security Interests arising under the Financing
Documents in favour of the Financiers (or any of them).

 

	12.4	Operation

 

		12.4.1	The Lessee will not use or operate the Aircraft, or permit the Aircraft
to be used or operated:

 

		(a)	in breach of any Applicable Regulations relating to the operation of the Aircraft;

 

		(b)	for any purpose for which the Aircraft was not designed or contrary to any recommendation of the Airframe
Manufacturer, the Engine Manufacturer or the Aviation Authority;

 

		(c)	for the carriage of:

 

		(i)	whole animals living or dead except in the cargo compartment according to IATA regulations (except for guide dogs or domestic pet animals carried in a suitable
container to prevent the escape of any liquid and to ensure the welfare of the animal);

 

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		(ii)	acids, toxic chemicals, other corrosive materials, explosives, nuclear fuels, nuclear wastes, or any nuclear
assemblies or components, except as permitted for passenger aircraft under the “Restriction of Goods” schedule issued by IATA
from time to time and provided that all the requirements for packaging or otherwise contained therein are fulfilled;

 

		(iii)	any other goods, materials or items of cargo which could reasonably be expected to cause damage to the
Aircraft and which would not be adequately covered by the Insurances; or

 

		(iv)	any illegal items or substances which, with the exercise of reasonable diligence, could have been avoided;

 

		(d)	in any circumstances or geographic location where the Aircraft is not covered by the Insurance;

 

		(e)	in any circumstance permitting the Aircraft to proceed to, or remain at, or operate from any location
in an Excluded Country (for the avoidance of doubt, over flights may be conducted provided they comply with all Applicable Regulations
and the terms of the Insurances); or

 

		(f)	for any training, demonstration or test flights but the Lessee or any Permitted Sublessee will be entitled
to undertake flight deck crew training of their own personnel provided that the use of the Aircraft for such crew training is not
disproportionate to the amount of such crew training on other aircraft of the same type as the Aircraft operated by the Lessee or any
Permitted Sublessee.

 

		12.4.2	The Lessee will:

 

		(a)	keep (or will procure that any Permitted Sublessee keeps) the main operational base of the Aircraft at
the Habitual Base;

 

		(b)	use the Aircraft solely in commercial or other operations for which the Lessee is duly authorised by the
Aviation Authority and Applicable Regulations;

 

		(c)	ensure that the crew and engineers employed by the Lessee in connection with the operation and maintenance
of the Aircraft have the qualifications and hold the licences required by the Aviation Authority and Applicable Regulations;

 

		(d)	to the extent that the EU ETS Legislation applies to the operation of the Aircraft:

 

		(i)	comply with any obligations applicable to it in respect of the EU ETS Legislation and shall ensure that
the Lessee (and not the Lessor, the Owner or any Financier) is notified to the relevant authorities as being the operator of the Aircraft
whenever applicable in connection with the EU ETS Legislation; and

 

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		(ii)	upon the reasonable request of the Lessor, but not more frequently than on a yearly basis for so long
as the EU ETS Legislation applies to the operation of the Aircraft, certify to the Lessor that the Lessee and any Permitted Sublessee
are complying with the EU ETS Legislation to the extent that such EU ETS Legislation applies to the Lessee or any Permitted Sublessee;

 

		(e)	obtain and maintain in full force all certificates, licences, permits and authorisations for the time
being required for the use and operation of the Aircraft and for the making of payments by the Lessee as required by, and the compliance
by the Lessee with its other obligations under, this Agreement; and

 

		(f)	not abandon the Aircraft or do or willingly permit to be done anything which may expose the Aircraft or
any part of it to the risk of damage, destruction, arrest, confiscation, seizure, forfeiture, impounding, detention or appropriation.

 

		12.4.3	The Lessee will not use, operate, maintain, overhaul, repair, insure or
deal with the Aircraft or any Engine or Part in a manner which discriminates against the Aircraft or such Engine or Parts when compared
with the manner in which the Lessee uses, operates, maintains, overhauls, repairs, insures or deals with other Boeing 787 family aircraft
or other engines or parts (in each case of a similar model to the Engines or Parts) operated or owned by the Lessee, provided however
that, without prejudice to its obligations pursuant to the other provisions of this Agreement, in the twelve (12) months prior to
the Redelivery Date the Lessee will be permitted, subject to prior written notice to the Lessor and prior consultation with the Lessor,
to discriminate against the Aircraft solely in relation to the implementation of an optional improvement or modification that is a passenger
convenience item (being an improvement or modification which it is implementing, or which it intends to implement, in respect of its Boeing
787 family fleet).

 

		12.4.4	The Lessee will not do or permit to be done anything which could reasonably
be expected to prejudice any right which the Lessor, the Owner or any Financier may have against the Airframe Manufacturer, the Engine
Manufacturer or any other supplier of any Part.

 

	12.5	Operational costs

 

The Lessee will pay or cause to be
paid all costs of operating the Aircraft and all other aircraft operated by the Lessee, including all air navigation charges, licences
and other overflight and airport fees and charges and passenger taxes when due.

 

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	13.	TECHNICAL

 

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	14.	INDEMNITIES

 

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	14.3	Payment of Taxes

 

Subject to the provisions of Clause
14.4 (Tax Indemnity), the Lessee shall promptly pay all Taxes imposed on the Lessee by any Government Entity with respect to the
Aircraft, including without limitation with respect to the ownership, delivery, leasing, sub-leasing, possession, use, operation, importation,
exportation, redelivery, sale or other disposition of the Aircraft.

 

	14.4	Tax Indemnity

 

		14.4.1	Subject to the exclusions set out in Clause 14.4.2,
the Lessee shall immediately upon demand indemnify and hold harmless the Lessor and, if different, the Owner against any and all Taxes
which the Lessor and, if different, the Owner may suffer or incur, whether directly or indirectly and which arise (and regardless of when
the same are suffered or incurred) as a result of the purchase, ownership, maintenance, service repair, overhaul, delivery, possession,
transfer of title or possession, import, export, storage, modification, leasing, inspection, refurbishment, replacement, transportation,
storing, testing, design, sub-leasing, positioning, interchange, condition, environmental damage, use, operation, registration or redelivery
of the Aircraft, any Engine, any Part and/or which otherwise relate to the Aircraft.

 

		14.4.2	The Lessee will not be required to indemnify the Lessor
and, if different, the Owner under Clause 14.4.1 to the extent the Tax for which the indemnity claim is made:

 

		(a)	is covered pursuant to another indemnity provision of this Agreement and payment to
the Lessor under such other indemnity has actually been received by the Lessor; or

 

		(b)	arises as a result of any Lessor Lien or Excluded Tax.

 

	14.5	VAT

 

		14.5.1	For the purposes of this Clause 14.5:

 

		(a)	VAT includes value added tax and any goods and services, sales or turnover tax, or charges of
a similar kind.

 

		(b)	Supply includes anything on which VAT is charged.

 

		14.5.2	The Lessee must pay the Lessor or the relevant tax
authority (as applicable) the amount of any VAT which is chargeable for any Supply relating to any obligation of the Lessee under any
of the Transaction Documents.

 

		14.5.3	If the Lessor is required under any of the Transaction
Documents to reimburse the Lessee for any cost, expense or other amount incurred by the Lessee under such Transaction Document, if VAT
is payable in respect of such cost, expense or other amount, the Lessor will pay such VAT.

 

    	 	 	Avolon LATAM B787 Lease –
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		14.5.4	Each amount shown which the Lessee must pay under
the Transaction Documents does not include VAT and if VAT is payable in respect of any amount, the Lessee shall pay all such VAT and shall
indemnify the Lessor against any claims for the same (and where appropriate the Lessee shall increase the payments which would otherwise
be required to be made hereunder so that the Lessor is left in the same position as it would have been in had no VAT been payable); and
the Lessee shall provide evidence to the Lessor in respect of payment of any such VAT.

 

	14.6	Currency protection

 

		14.6.1	The Lessee agrees to indemnify each Indemnitee against
any Loss which such Indemnitee suffers in converting any sum into Dollars if:

 

		(a)	such Indemnitee receives an amount relating to the Lessee’s obligations in
a different currency from that in which payments should be made under the Transaction Documents; or

 

		(b)	the Lessee pays a judgment or claim in a different currency from that in which payments
should be made under the Transaction Documents.

 

		14.6.2	The Lessee waives any right it may have in any jurisdiction
to pay any amount under the Transaction Documents in a currency other than the contractual currency.

 

		14.6.3	The Lessor will:

 

		(a)	pay to the Lessee any currency gain which it has received from any conversion made
by the Lessor relating to any event referred to in Clause 14.6.1; and

 

		(b)	use all reasonable endeavours to procure payment to the Lessee by any other Indemnitee
of any currency gain which such Indemnitee has received from any conversion made by such Indemnitee relating to any event referred to
in Clause 14.6.1,

 

provided that in each case no Event of Default has
occurred and is continuing.

 

	14.7	Tax on indemnity payments

 

The amount of any payment made
under this Clause 14 (Indemnities) must take into account the Tax treatment of the payment and of the Loss in respect of which
the payment is claimed so that the Indemnitee is fully compensated, after that Tax treatment has been taken into account, for the Loss
for which the relevant claim is made.

 

	14.8	Contest and indemnity payments

 

		14.8.1	Provided no Event of Default shall have occurred and
be continuing and without prejudice to the Lessee’s obligations pursuant to Clause 14.4 (Tax Indemnity), at the Lessee’s
request and sole cost and expense, the computation of any amount payable by the Lessee pursuant to Clause 14.4 (Tax Indemnity)
shall be verified by an independent accounting firm of international reputation selected by the Lessee and reasonably satisfactory to
the Lessor. If the Lessor notifies the Lessee in writing that such accounting
firm is not reasonably satisfactory to the Lessor, then another independent accounting firm of international reputation shall be selected
by the Lessor and notified to the Lessee to verify the computation requested by the Lessee and at the Lessee’s sole cost and expense.
Such computation by such other independent accounting firm shall be binding on the Lessor and the Lessee.

 

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		14.8.2	If the Lessee disputes the payment of (i) any Taxes
payable by the Lessor or any Indemnitee for which the Lessee is responsible under this Agreement or (ii) an amount payable by the Lessee
pursuant to Clause 14.1 (General Indemnity), the Lessor will, provided that no Default has occurred and is continuing, consider
with the Lessee in good faith, and if reasonably requested by the Lessee, shall take such action as is reasonably practicable and as the
Lessee may reasonably request at the Lessee’s sole costs and expense to contest that payment, but neither the Lessor nor any Indemnitee
will be obliged to take any such action which:

 

		(i)	the Lessor or such Indemnitee reasonably considers may materially prejudice it; or

 

		(ii)	the Lessor or such Indemnitee reasonably considers does not have a reasonable prospect of success; or

 

		(iii)	involves a sum of less than ten thousand Dollars ($10,000).

 

		14.8.3	Without limiting the Lessor’s right to pursue
payment from the Lessee for a particular Loss under this Agreement, the Lessor will not be entitled to actually receive payment from the
Lessee for the same Loss twice.

 

		14.8.4	The Lessor agrees that:

 

		(a)	it shall, as soon as reasonably practicable after it has actual knowledge of a
claim or Loss for which it or any other Indemnitee wishes to claim indemnification from the Lessee hereunder, notify the Lessee of such
claim or Loss;

 

		(b)	to the extent that it can do so without (in the reasonable opinion of the Lessor
or the relevant Indemnitee) being prejudiced in any way and without limiting in any way, the Lessor’s (or any other Indemnitee’s)
rights to indemnification from the Lessee hereunder, it will not pay or settle any claim from a third party until it has notified the
Lessee of such claim or Loss and if requested by the Lessee, consulted in good faith with the Lessee (at the Lessee’s reasonable
cost) for up to thirty (30) days after the date of notification to the Lessee of such claim or Loss;

 

		(c)	it will at the reasonable cost and expense of the Lessee consult and co- operate
in good faith with the Lessee in taking such action (if any) as is reasonably practicable in order to avoid or mitigate such claim or
Loss, provided always that the Lessor shall not be required to take such action:

 

		(i)	if an Event of Default shall have occurred and shall be continuing;

 

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		(ii)	unless adequate provision, reasonably satisfactory to the Lessor, shall have been made in respect of the third party claim and the costs
thereof;

 

		(iii)	if the Lessor or any Indemnitee considers that such action may materially prejudice
it;

 

		(iv)	if any such action involves a material risk of the sale, forfeiture or loss of,
or the creation of a Security Interest (other than a Permitted Security Interest) over, the Aircraft, or if such action could in the reasonable
opinion of the Lessor or any Indemnitee, give rise to any reasonable likelihood of criminal liability;

 

		(v)	if the Lessor or any Indemnitee reasonably considers such action does not have
a reasonable prospect of success; or

 

		(vi)	if the sum involved is less than $10,000; and

 

		(d)	to the extent that the Lessee indemnifies the Lessor or any Indemnitee in full
in respect of any Loss under Clause 14.1.1 and the Lessor or such Indemnitee is subsequently reimbursed in full in respect of that Loss
by any other person, the Lessor or such Indemnitee shall, provided no Default shall have occurred and be continuing, promptly pay to the
Lessee an amount equal to the sum paid to it by the Lessee pursuant to Clause 14.1.1, less any Tax payable by the Lessor or such Indemnitee
in respect of such reimbursement and less any costs and expenses incurred by the Lessor or such Indemnitee in obtaining such reimbursement
(to the extent that Lessor or such Indemnitee is not reimbursed for such costs and expenses).

 

	14.9	Tax credit

 

If the Lessor or the Owner, in
good faith and based upon its own reasonable interpretation of any relevant laws or regulations, determines that it has realised a Tax
benefit (by way of deduction, credit or otherwise) as a result of any payment which the Lessee has made under Clause 14.4 (Tax Indemnity)
to or for the benefit of the Lessor or the Owner, the Lessor or the Owner (as applicable) shall (to the extent that it can do so without
prejudice to the retention of the Tax benefit and subject to the Lessee’s obligation to repay such amount to the Lessor or the Owner
(as applicable) if the Tax benefit is subsequently disallowed or cancelled) pay to the Lessee as soon as practicable after the Tax benefit
has been realised (but not before the Lessee has made all payments and indemnities due and payable at that time to the Lessor or the Owner
(as applicable) required under this Clause 14 (Indemnities) and so long as no Event of Default has occurred and is continuing)
an amount which will ensure that (after taking account of the payment itself) the Lessor or the Owner (as applicable) is in no better
and no worse position than it would have been if the Tax benefit had not been realised. Nothing in this Clause 14.9 shall:

 

		14.9.2	interfere with the right of the Lessor and, if different, the Owner to
arrange its Tax affairs in whatever manner it thinks fit; or

 

		14.9.3	oblige the Lessor and, if different, the Owner to disclose any information
relating to its Tax affairs or any Tax computations.

 

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	15.	TOTAL LOSS

 

	15.1	Risk of Loss

 

The Lessee will be responsible for all risks associated
with a Total Loss throughout the Lease Period.

 

	15.2	Total Loss: Airframe

 

		15.2.1	If the Airframe suffers a Total Loss at any time
prior to Delivery, this Agreement will immediately terminate and neither party will have any further obligations hereunder except as expressly
stated and save for accrued rights, obligations and claims and any obligations expressed to survive the termination of this Agreement
provided that the Lessor shall, within five (5) Business Days, repay to the Lessee an amount equal to the balance of the Security
Deposit paid by the Lessee.

 

		15.2.2	If the Airframe suffers a Total Loss at any time after Delivery:

 

		(a)	the Lessee will pay the Agreed Value to the Loss Payee on the Total Loss Payment
Date together with any unpaid Rent calculated up to and including that date (except in circumstances where the Total Loss arises as a
result of the operation of paragraph (c) and (d) of the definition of Total Loss and on or prior to the Total Loss Payment Date, the Lessee
recovers full possession of the Aircraft, in which case no Total Loss shall be deemed to have occurred);

 

		(b)	the Lessee will continue to perform those of its obligations that remain capable
of performance (including, for the avoidance of doubt, the payment of Rent) up to and including the Total Loss Payment Date; and

 

		(c)	subject to the rights of any insurers, reinsurers or other third party, upon irrevocable
payment in full of the Agreed Value to the Loss Payee and all other amounts which may be payable by the Lessee under this Agreement, the
Lessor will transfer (or procure that the Owner transfers) all of its rights, title and interest in and to the Aircraft (including each
Engine) to the Lessee or its nominee and will return to the Lessee any surplus proceeds of hull insurance in respect of such Total Loss
received by the Lessor over and above the amount of such Agreed Value (to the extent not applied to another payment obligation of the
Lessee). Ownership will be transferred on an "as-is, where-is" basis without any recourse or warranty except that there are
no Lessor Liens and that the Lessor will execute or cause to be executed and delivered such bills of sale and other documents and instruments
as the Lessee may reasonably request to evidence (on the public record or otherwise) the transfer and the vesting of the Owner’s
rights, title and interest in and to the Aircraft in the Lessee, free and clear of all rights of the Owner and any Lessor Liens. The Lessee
shall indemnify the Lessor and the Owner for all fees and expenses properly incurred and Taxes incurred by the Lessor or the Owner resulting
from their compliance with this Sub-Clause 15.2.2(c).

 

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	15.3	Total Loss: Engine or Part

 

		15.3.1	If an Engine or a Part suffers a Total Loss which
does not also involve a Total Loss of the Airframe (and as if, for these purposes, all references in the definition of "Total
Loss" to "Aircraft" were to "Engine" or "Part" as the context may require)
the Lessee shall:

 

		(a)	in the case of a lost Engine, APU or Landing Gear notify the Lessor promptly after
becoming aware of the same;

 

		(b)	replace the lost Engine or lost Part with a Replacement Engine or Replacement Part
(as applicable) in accordance with Sub-Clause 15.3.2 below; and

 

		(c)	continue to pay Rent and all other sums due under this Agreement as if the Total Loss
had not occurred.

 

		15.3.2	As soon as practicable after the Total Loss referred
to in Sub-Clause 15.3.1 above and in any event within ninety (90) days of the occurrence thereof, the Lessee shall replace the lost Engine
or lost Part at its own expense with a Replacement Part or Replacement Engine in accordance with Clause 10.3 (Permanent replacement
of Engines and Parts).

 

		15.3.3	After the Lessee has carried out all of its obligations
under this Clause 15.3, and unless the insurers are entitled to the replaced Engine or Part as salvage, the Lessor will, if requested,
make sure that the Owner will transfer ownership of the replaced Engine or Part to the Lessee or its nominee. Ownership will be transferred
on an "as-is, where-is" basis without any recourse or warranty except that there are no Lessor Liens and that the Lessor will
execute or cause to be executed and delivered such bills of sale and other documents and instruments as the Lessee may reasonably request
to evidence (on the public record or otherwise) the transfer and the vesting of the Owner’s rights, title and interest in and to
such Engine or Part in the Lessee, free and clear of all rights of the Owner and any Lessor Liens. The Lessee shall indemnify the Lessor
and the Owner for all fees and expenses properly incurred and Taxes incurred by the Lessor or the Owner resulting from their compliance
with this Sub-Clause 15.3.3.

 

	16.	REQUISITION

 

REDACTED

 

 

 

 

 

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	17.	INSURANCE

 

	17.1	General Requirements

 

		17.1.1	The Lessee will keep the Aircraft covered by Insurance
at all times during the Lease Period as required by this Clause 17 (Insurance) and Schedule 9 (Insurance Requirements).
The Lessor acknowledges that the Lessee currently provides insurance coverage through its fleet policy with Marsh Ltd. acting as Insurance
Broker, and the Lessor confirms that these arrangements meet its current requirements as at the date of this Agreement.

 

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		17.1.2	All insurance premiums and other costs of maintaining
the Insurance will be for the account of the Lessee.

 

		17.1.3	The Lessee will ensure that each certificate of Insurance
is in form and substance having regard to standard industry practice in the London, New York or any internationally recognised aviation
insurance market.

 

	17.2	Specific Requirements

 

The specific requirements of the Lessor,
at the date of this Agreement, with respect to Insurance for the Aircraft are set out in Schedule 9 (Insurance Requirements).

 

	17.3	Insurance Covenants

 

		17.3.1	The Lessee will comply with each Insurance policy
and will not do or omit to do anything, or permit any act or omission, which:

 

		(a)	results in or could reasonably be expected to result in the Insurance not being
valid in any respect or which renders it or which could reasonably be expected to render it wholly or partially void or voidable; or

 

		(b)	could reasonably be expected to bring any particular liability, that would otherwise
be covered by the Insurance, if a claim were made, within the scope of an exclusion from or an exception to it; or

 

		(c)	results in any alteration to, or the creation of any Security Interest (other than
a Permitted Security Interest) in, the Insurances and which could reasonably be expected to prejudice the interests of any Indemnitee;
or

 

		(d)	is in breach of or does not comply with Applicable Regulations as regards insurance
requirements for the Aircraft.

 

		17.3.2	The Lessee shall:

 

		(a)	not without the prior notice to the Lessor take out any insurance or reinsurance
in respect of the Aircraft (other than relating solely to hull total loss, loss of use insurance, profit commission, engine breakdown
cover and/or deductibles risk insurance) other than that required under this Agreement;

 

		(b)	be responsible for any deductible under the Insurances;

 

		(c)	provide any other insurance and reinsurance related information or assistance in
respect of the Insurances that the Lessor or the Security Trustee may reasonably require, including, without limitation, in relation to
the expiry and/or renewal of the Insurances;

 

		(d)	not settle any claim in excess of the Partial Loss Threshold in respect of physical
damage arising under any of the Insurances in respect of any loss or damage without the prior written notice to the Lessor, acting reasonably;
and

 

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		(e)	notify the Lessor in writing of any payments of proceeds of Insurances that it
receives in respect of the Aircraft in amounts exceeding the Partial Loss Threshold.

 

		17.3.3	The Lessee will start renewal procedures at least
thirty (30) days prior to the expiry of any policy of Insurance and provide to the Lessor:

 

		(a)	upon reasonable request from time to time, an update on the status of negotiations
for renewal;

 

		(b)	on or prior to each renewal date (subject to such Insurance Broker customarily
providing such at that time) confirmation from the relevant Insurance Broker that the insurance coverage required to be effected in accordance
with this Agreement has been renewed prior to the expiry of the current policy;

 

		(c)	certificates of insurance (and where appropriate, reinsurance) and a Broker’s
Letter of Undertaking, detailing the coverage of each policy and (subject to the Insurance Broker confirming such in its customary form
of certificate of insurance) confirming the agreement of the approved underwriters to the specific insurance requirements of this Agreement
or specifying this Agreement as a “Contract” for the purposes thereof, no later than seven (7) Business Days after each renewal
date; and

 

		(d)	such other information regarding the Insurance as the Lessor may reasonably require.

 

	17.4	Failure to Insure

 

If the Lessee fails to insure the Aircraft in accordance
with this Agreement:

 

		17.4.1	any Indemnitee may (but is not obliged to) pay outstanding
premiums or effect alternative insurance in respect of the Aircraft and any cost incurred by an Indemnitee in the exercise of this right
will be reimbursed by the Lessee on demand; and

 

		17.4.2	the Lessor may (but is not obliged to) require the
Aircraft to be grounded and to remain there until it is once again insured in accordance with this Agreement.

 

	17.5	Continuation of Insurance

 

		17.5.1	The Lessee will maintain liability insurance after
the Expiry Date to cover the Lessee’s continuing liability under the indemnities in Clause 14.1 (General Indemnity), until
the earlier of:

 

		(a)	second anniversary of the Expiry Date; or

 

		(b)	the first C Check to be performed after Redelivery.

 

		17.5.2	Each Indemnitee will be named as additional insured
under the insurance maintained under Clause 17.5.1 and neither the Lessee ceasing to lease the Aircraft, nor the Indemnitees ceasing to
have any interest in it, will affect the Lessee’s obligations under this Clause 17 (Insurance).

 

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	17.6	Application of Insurance Proceeds

 

The proceeds of any policy of Insurance will be applied
in accordance with Schedule 9 (Insurance Requirements).

 

	18.	RETURN OF THE AIRCRAFT

 

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	19.	EVENTS OF DEFAULT

 

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	20.	REMEDIES

 

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	20.4	Sale or re-lease of the Aircraft

 

Upon any such termination as is
mentioned in Clause 20.1 (Rights), the Lessor may sell or re-lease or otherwise deal with the Aircraft at such time and in such
manner and on such terms as the Lessor considers appropriate in its absolute discretion, free and clear of any interest of the Lessee,
as if this Agreement had never been entered into.

 

	20.5	Deregistration

 

Upon any such termination as is
mentioned in Clause 20.1 (Rights), the Lessee shall cooperate with the Lessor, to enable the Lessor to effect or cause to be effected
deregistration of the Aircraft from the State of Registration and the export of the Aircraft from the country where the Aircraft is for
the time being situated and any other steps necessary to enable the Aircraft to be redelivered to the Lessor in accordance with this Agreement.

 

REDACTED

 

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REDACTED

 

 

 

 

 

 

 

 

 

 

	21.	ILLEGALITY

 

	21.1	If a Lessor Illegality Event or a Lessee Illegality
Event occurs then, subject always to Clause 21.2, the Lessor may by notice in writing to the Lessee terminate the leasing of the Aircraft
under this Agreement, such termination to take effect on the earlier of (a) the latest date on which the Lessor or the Lessee, as the
case may be, may continue such leasing and perform their respective obligations hereunder without being in breach of Applicable Regulations
and, (b) the date on which the Lessor determines (acting reasonably) that it must give notice in writing to the Lessee to terminate the
leasing of the Aircraft under this Agreement to ensure that its rights under this Agreement and in and to the Aircraft are not adversely
affected as a result of the occurrence of the relevant Lessor Illegality Event or Lessee Illegality Event, as the case may be (the "Effective
Date"), and:

 

		21.1.1	in case of a Lessee Illegality Event: the
Lessee shall as soon as reasonably practicable and in any event within ten (10) Business Days of the Effective Date (or such longer period
as the Lessor may agree) redeliver the Aircraft to the Lessor in accordance with Clause 18 (Return of the Aircraft) and (a) the
Lessee shall pay to the Lessor amounts equal to those specified in Clause 20.3 (Payments) and (b) the Lessor shall promptly thereafter
refund to the Lessee an amount equal to the balance of the Security Deposit (to the extent received by the Lessor). The provisions of
Clause 20.4 (Sale or re-lease of the Aircraft) and 20.5 (Deregistration) shall
apply in respect of any such termination; or

 

		21.1.2	in case of a Lessor Illegality Event: the Lessee
shall as soon as reasonably practicable and in any event within ten (10) Business Days of the Effective Date (or such longer period as
the Lessor may agree) redeliver the Aircraft to the Lessor in accordance with Clause 18 (Return of the Aircraft) but with the redelivery
conditions set out in Clause 21.3 (Return Condition applicable to Lessor Illegality) applying instead of those return conditions
set out in Schedule 10 (Redelivery). The provisions of Clause 20.5 (Deregistration) shall apply in respect of any such termination.

 

REDACTED

 

 

 

 

 

 

 

 

 

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	22.	DISCLAIMER

 

	22.1	Exclusion

 

The Aircraft is to be leased and
delivered “as is, where is”, that is in its actual state and condition at Delivery and the Lessee agrees and acknowledges
that, save as expressly stated in this Agreement:

 

		22.1.1	none of the Lessor, the Owner, the Security Trustee,
the Financiers, the Servicer or any other Indemnitee (collectively, the “Protected Parties”) will have any liability
to the Lessee or any other person in relation to, and no Protected Party has made or given, nor will be deemed to have made or given (whether
by virtue of having done or failed to do any act or having acquired or failed to acquire any status under or in relation to this Agreement
or otherwise), any warranties or representations, express or implied, with respect to the Aircraft, including (but not limited to) the
description, airworthiness, compliance with specifications, operation, merchantability, satisfactory quality, freedom from infringement
of patent or other proprietary rights, fitness for any particular use or purpose, value, durability, condition, or design or as to the
quality of the material or workmanship, the absence of latent or other defects, whether or not discoverable, or as to any other matter
whatsoever, express or implied (including any implied warranty from a course of performance, dealing, usage or trade with respect to the
Aircraft); and

 

		22.1.2	no Protected Party will have any obligation or liability
whatsoever to the Lessee (whether arising in contract or in tort, and whether arising by reference to negligence or strict liability of
the Protected Parties or otherwise) for:

 

		(a)	any liability, loss or damage caused or alleged to be caused directly or indirectly
by the Aircraft or by any inadequacy thereof or deficiency or defect therein or by any other circumstance in connection therewith;

 

		(b)	the use, operation or performance of the Aircraft or any risks relating thereto;

 

		(c)	any interruption of service, loss of business or anticipated profits or any other
direct, indirect or consequential loss or damage; or

 

		(d)	the delivery, operation, servicing, maintenance, repair, improvement or replacement
of the Aircraft.

 

	22.2	Waiver

 

The Lessee hereby waives, as between itself and the Protected
Parties:

 

		22.2.1	all its rights in respect of any condition, warranty or representation,
express or implied, on the part of the Protected Parties; and

 

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		22.2.2	all claims against the Protected Parties, however and whenever arising,

 

in each case, in respect of or
out of any of the matters referred to in Clause 22.1 (Exclusion) and save as expressly stated in this Agreement.

 

	22.3	Confirmation

 

The Lessee confirms that it is
fully aware of the provisions of Clause 22.1 (Exclusion) and acknowledges that the Rent and other amounts payable under this Agreement
have been calculated based on its provisions.

 

	23.	ASSIGNMENT AND TRANSFER

 

	23.1	Benefit of Agreement

 

This Agreement shall be binding
on and enure to the benefit of the parties hereto and their respective successors and permitted transferees and assignees.

 

	23.2	No Lessee Transfer or Security Interest

 

REDACTED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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	23.3	Transfer by Lessor

 

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	23.5	Conditions to any Absolute Assignment

 

In relation to any Absolute Assignment by the Lessor:

 

		23.5.1	neither the assignee nor any of its Affiliates shall
be engaged in any airline business activity that directly competes with that of the Lessee or any of its Leasing Affiliates;

 

		23.5.2	the Lessor will procure that the proposed assignee shall
have executed and delivered to the Lessee on or prior to the occurrence of the Absolute Assignment an undertaking substantially in the
form of Clause 7.1 (Quiet enjoyment);

 

		23.5.3	completion of such Absolute Assignment does not affect
the Lessee’s or the operator of the Aircraft under a Permitted Sublease or Approved Interchange Agreement quiet enjoyment of the
Aircraft and does not cause unreasonable interruption to the normal business operations of the Lessee or the operator of the Aircraft
under a Permitted Sublease or Approved Interchange Agreement;

 

		23.5.4	if such Absolute Assignment occurs after Delivery
the Lessor, upon receipt of reasonably satisfactory documentary evidence, shall reimburse to the Lessee an amount equal to all out-of-pocket
costs and expenses including reasonable legal expenses properly incurred by the Lessee in connection with such Absolute Assignment no
later than ten (10) Business Days following the date of receipt of an invoice documenting such costs and expenses;

 

		23.5.5	the Lessor shall pay to Lessee the Lessee Fee no later
than ten (10) Business Days following such Absolute Assignment;

 

		23.5.6	as at the date of such Absolute Assignment, the Lessee
will not be in breach of any Applicable Regulations (including any Applicable Regulations that may have been enacted as at the date thereof
but which Applicable Regulations have not come into effect) as a consequence of such Absolute Assignment;

 

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		23.5.7	except as otherwise agreed by the Lessee, the Lessee
shall incur no greater financial obligations under this Agreement and other than as provided by this Agreement, the Lessee’s obligations
under this Agreement shall not be increased and the Lessee’s rights under this Agreement shall not be diminished as a result of
such assignment, in each case, based on Applicable Regulations in effect as at the date of such assignment (including any Applicable Regulations
that may have been enacted as at the date thereof but which Applicable Regulations have not come into effect) provided that this
paragraph shall not apply to any increase in the number of Indemnitees; and

 

		23.5.8	the Lessee (acting reasonably) shall receive sufficient
information in respect of the assignee to enable the Lessee to perform the Lessee’s know your customer checks on such transferee.

 

	23.6	Conditions to any Security Transfer

 

In relation to any Security Transfer by the Lessor:

 

		23.6.1	the Lessor will procure that any transferee holding
title to, or a Security Interest over, the Aircraft shall have executed and delivered to the Lessee a quiet enjoyment undertaking substantially
in the form of the Security Trustee’s Quiet Enjoyment Letter, upon acquiring such title or Security Interest;

 

		23.6.2	completion of such Security Transfer does not affect
the Lessee’s or the operator of the Aircraft under a Permitted Sublease or Approved Interchange Agreement quiet enjoyment of the
Aircraft and does not cause unreasonable interruption to the normal business operations of the Lessee or operator of the Aircraft under
a Permitted Sublease or Approved Interchange Agreement;

 

		23.6.3	the Lessor, upon receipt of reasonably satisfactory documentary
                                                                  evidence, shall reimburse to the Lessee an amount equal to all out-of-pocket costs and expenses including reasonable legal expenses
                                                                  properly incurred by the Lessee in connection with such Security Transfer occurring after Delivery no later than ten (10) Business Days following the
date of receipt of an invoice documenting such costs and expenses;

 

		23.6.4	unless the Lessee is not required to execute any agreements in
                                                                  relation to such Security Transfer, the Lessor shall pay to Lessee the Lessee Fee no later than ten (10) Business Days following such Security
Transfer;

 

		23.6.5	as at the date of such Security Transfer, the Lessee
will not be in breach of any Applicable Regulations (including any Applicable Regulations that may have been enacted as at the date thereof
but which Applicable Regulations have not come into effect) as a consequence of such Security Transfer; and

 

		23.6.6	except as otherwise agreed by the Lessee, the Lessee
shall incur no greater financial obligations under this Agreement and other than as provided by this Agreement, the Lessee’s obligations
under this Agreement shall not be increased and the Lessee’s rights under this Agreement shall not be diminished as a result of
such Security Transfer, in each case, based on Applicable Regulations in effect as at the date of such Security Transfer (including any
Applicable Regulations that may have been
enacted as at the date thereof but which Applicable Regulations have not come into effect) provided that this paragraph shall not
apply to any increase in the number of Indemnitees.

 

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	23.7	Conditions to any Head Lease

 

In relation to any Head Lease by the Lessor:

 

		23.7.1	neither the new Owner nor any of its Affiliates shall
be engaged in any airline business activity that directly competes with that of the Lessee or any of its Leasing Affiliates;

 

		23.7.2	the Lessor will procure that any new Owner holding
title to the Aircraft shall have executed and delivered to the Lessee an undertaking substantially in the form of Clause 7.1 (Quiet
enjoyment) (or such other form as the Lessee, acting reasonably, may agree with such transferee) upon acquiring such title;

 

		23.7.3	closing of such Head Lease does not affect the Lessee’s
or the operator of the Aircraft under a Permitted Sublease or Approved Interchange Agreement quiet enjoyment of the Aircraft and does
not cause unreasonable interruption to the normal business operations of the Lessee or the operator of the Aircraft under a Permitted
Sublease or Approved Interchange Agreement;

 

		23.7.4	the Lessor, upon receipt of reasonably
                                                                  satisfactory documentary evidence, shall reimburse to the Lessee an amount equal all out-of-pocket costs and expenses including the
                                                                  reasonable legal expenses properly incurred by the Lessee in connection with such Head Lease established after Delivery no later
                                                                  than ten (10) Business Days following the
date of receipt of an invoice documenting such costs and expenses;

 

		23.7.5	as at the date of such Head Lease, the Lessee will
not be in breach of any Applicable Regulations (including any Applicable Regulations that may have been enacted as at the date thereof
but which Applicable Regulations have not come into effect) as a consequence of such Head Lease; and

 

		23.7.6	except as otherwise agreed by the Lessee, the Lessee
shall incur no greater financial obligations under this Agreement and other than as provided by this Agreement, the Lessee’s obligations
under this Agreement shall not be increased and the Lessee’s rights under this Agreement shall not be diminished as a result of
such Head Lease, in each case, based on Applicable Regulations in effect as at the date of such Head Lease (including any Applicable Regulations
that may have been enacted as at the date thereof but which Applicable Regulations have not come into effect) provided that this
paragraph shall not apply to any increase in the number of Indemnitees.

 

    	 	 	Avolon LATAM B787 Lease –
	 	– 69 –	Aircraft MSN 38891

     

    

 

	23.8	Introduction/Change of Financiers

 

		23.8.1	Subject to Clause 23.10 (Conditions to Change of Financiers),
                                                                  the Lessee acknowledges that the Lessor, the Owner and/or the Financiers may from time to time finance or refinance the Aircraft
                                                                  and/or restructure the financing arrangements contemplated by the Financing Documents (which may include, without limitation, the imposition
or substitution of any Head Lease or a tax structured lease, tranched debt, sale of receivables or securitisation) and may, in connection
therewith, enter into new Financing Documents. At or about the time of completion of any such financing or restructuring, the Lessor shall
deliver a written notice (a “Financing Notice”) to the Lessee identifying the new Financiers and their respective jurisdiction
of incorporation, and the Lessee shall (without prejudice to the Lessee’s obligations under Clause 12.1 (Title protection)):

 

		(a)	at the Lessor’s cost, (i) co-operate with the Lessor filing the Financiers’
Security Interests created pursuant to the finance or refinance of the Aircraft and/or restructure the financing arrangements contemplated
by the Financing Documents on each relevant register of the Aviation Authority and, if applicable the Habitual Base and (ii) co-operate
with the Lessor filing in relation to the interests of any Financier in the Aircraft. Notwithstanding the foregoing, if the Lessee is
the only party with the legal standing or practical ability to file any Financier’s Security Interests, the Lessee agrees to make such
filing;

 

		(b)	at the Lessor’s cost, provide a replacement Deregistration Power of Attorney,
if applicable, an Aviation Authority Letter and, if applicable, an IDERA, in favour of the Lessor and/or the Security Trustee or the relevant
Financier as applicable, and, in the case of any IDERA, which has been recorded with the Aviation Authority;

 

		(c)	at the Lessor’s cost, replace the name-plates required by Clause 12.1 (Title
protection) to record any change in the identity of any relevant Financier (if appropriate);

 

		(d)	procure a revised certificate of insurance naming the new Financiers as additional
insured and noting any new Financing Document; and

 

		(e)	execute and deliver in favour of any such new Financiers, a Notice and Acknowledgement.

 

		23.8.2	If, pursuant to the introduction of, or a change
in the identity of, any Financiers in accordance with the terms of this Agreement, a person ceases to be a Financier, notwithstanding
such change, such person (and its related Indemnitees) shall remain Indemnitees and entitled to the benefit of each indemnity expressed
to be for the benefit of the Indemnitees and to the liability insurance cover required by Clauses 17 (Insurance), 23 (Assignment
and Transfer) and Schedule 9 (Insurance Requirements) until the earlier of (i) the first C Check to be performed after such
change or (ii) the second anniversary of such change. The Lessee’s obligation under this Clause 23.8.2 shall not be affected by
the Lessee ceasing to be the lessee of the Aircraft.

 

	23.9	Financing Documents

 

The Lessee acknowledges that the Lessor will not be obliged
to disclose the content of, or provide copies of, any Financing Document to the Lessee.

 

    	 	 	Avolon LATAM B787 Lease –
	 	– 70 –	Aircraft MSN 38891

     

    

 

	23.10	Conditions to Change of Financiers

 

In connection with any change of
Financiers detailed in Clause 23.8 (Introduction/Change of Financiers):

 

		23.10.1	the Lessor will procure that any new Financiers holding
title to, or a Security Interest over, the Aircraft shall have executed and delivered to the Lessee a quiet enjoyment undertaking substantially
in the form of the Security Trustee’s Quiet Enjoyment Letter upon acquiring such title or such Security Interest;

 

		23.10.2	completion of such change of Financiers does not
affect the Lessee’s or the operator of the Aircraft under a Permitted Sublease or Approved Interchange Agreement quiet enjoyment
of the Aircraft and does not cause unreasonable interruption to the normal business operations of the Lessee or the operator of the Aircraft
under a Permitted Sublease or Approved Interchange Agreement;

 

		23.10.3	unless the Lessee is not required to execute any agreements
in relation to such change of Financiers, the Lessor shall pay to Lessee the Lessee Fee no later than ten (10) Business Days following
such change of Financiers;

 

		23.10.4	as at the date of such change, the Lessee will not
be in breach of any Applicable Regulations (including any Applicable Regulations that may have been enacted at the date thereof but which
Applicable Regulations haven to come into effect) as a consequence of such change;

 

		23.10.5	the Lessor, upon receipt of reasonably satisfactory
documentary evidence, shall reimburse to the Lessee an amount equal to all out-of-pocket costs and expenses including reasonable legal
expenses and out of pocket expenses properly incurred by the Lessee in connection with the change of Financiers no later than ten (10)
Business Days following the date of receipt of an invoice documenting such costs and expenses; and

 

		23.10.6	except as otherwise agreed by the Lessee, the Lessee
shall incur no greater financial obligations under this Agreement and other than as provided by this Agreement, the Lessee’s obligations
under this Agreement shall not be increased and the Lessee’s rights under this Agreement shall not be diminished as a result of
such change of Financier, in each case, based on Applicable Regulations in effect as at the date of such change of Financier (including
any Applicable Regulations that may have been enacted as at the date thereof but which Applicable Regulations have not come into effect)
provided that this paragraph shall not apply to any increase in the number of Indemnitees.

 

	24.	MISCELLANEOUS

 

	24.1	Notices

 

All notices under or in connection
with this Agreement will unless otherwise stated be given in writing by letter, or by electronic mail (including by pdf format). Any consent
or permission from the Lessor must be in writing. Any notice will be deemed to have been delivered as follows:

 

		24.1.1	if the notice is by letter, it will be effective when it is delivered; and

 

    	 	 	Avolon LATAM B787 Lease –
	 	– 71 –	Aircraft MSN 38891

     

    

 

		24.1.2	if the notice is by e-mail, when the email message
is sent, provided that the message is in legible form and no message is received by the sender indicating that such message has
not been received by or delivered to the intended recipient.

 

The current address and phone
numbers and email address of the Lessor and the Lessee are in Part B of Schedule 8 (Reporting & Notices) and may only be amended
by notice in writing.

 

	24.2	Language

 

All notices and documents to be
given under this Agreement must be in English. If they are not in English, they must be given with a certified English translation. If
there is any difference between the English version of this Agreement and any version in any other language, the English version will
apply.

 

	24.3	Rights

 

		24.3.1	The parties’ rights under this Agreement may
be used as often as that party considers appropriate, are cumulative and apply in addition to its rights under any law.

 

		24.3.2	A party hereto only loses any of its rights if it
specifically waives them in writing. If a party hereto decides not to use any of its rights or delays in using such rights, that does
not mean it cannot exercise such rights at a future date.

 

	24.4	Certificates

 

Any certificate or decision given
by the Lessor about any rate of interest or any other amount due under this Agreement will be presumed to be correct, save in the case
of manifest error.

 

	24.5	Application of receipts

 

If any amount the Lessee pays
or the Lessor recovers from the Lessee under this Agreement is less than the amount then due, the Lessor may use the funds in any proportion
the Lessor chooses towards the any other amounts due.

 

	24.6	Severability

 

If a provision of this Agreement
is or becomes illegal, invalid or cannot be enforced, in any jurisdiction that will not affect:

 

		24.6.1	the legality, validity or enforceability in that jurisdiction
of any of the other provisions of this Agreement; or

 

		24.6.2	the legality, validity or enforceability in any other
jurisdiction of that or any other provision of this Agreement.

 

	24.7	Expenses

 

		24.7.1	Except as expressly provided in this Agreement, each
party shall bear its own fees, costs and expenses in connection with the preparation, negotiation and completion of this Agreement and
the other Transaction Documents (including the fees and expenses of its own legal, tax or other advisors).

 

    	 	 	Avolon LATAM B787 Lease –
	 	– 72 –	Aircraft MSN 38891

     

    

 

		24.7.2	Any fees, costs and expenses arising pursuant to
amendments to this Agreement or the other Transaction Documents requested by the Lessor or the Lessee shall be borne by the relevant party
requesting such amendments or as otherwise mutually agreed.

 

	24.8	Time of essence

 

The time stipulated in this Agreement
for all payments by either party hereto to the other and for the performance of each party’s obligations under this Agreement is
of the essence.

 

	24.9	The whole agreement

 

This Agreement and the other Transaction
Documents is the whole agreement between the Lessor and the Lessee for leasing the Aircraft and replaces all previous agreements. This
Agreement can only be amended in writing signed by both parties.

 

	24.10	Counterparts

 

Any Transaction Document may be
executed in any number of counterparts and by the parties on separate counterparts. Each counterpart shall constitute an original of the
relevant Transaction Document, but together the counterparts shall constitute one document. Delivery of a counterpart of any Transaction
Document by e-mail attachment or telecopy shall be an effective mode of delivery.

 

	24.11	Set-off

 

At any time following the occurrence
of an Event of Default which is continuing, the Lessor may set-off any debt owed by the Lessee under the Transaction Documents against
any debt the Lessor owes the Lessee under the Transaction Documents. This can happen in any currency even if the debts are owed in different
currencies. If the debts are in different currencies, the Lessor may convert either debt at the market rate of exchange available in London
or New York. If the amount of a debt is unknown, the Lessor may estimate the amount. Any difference between the estimated debt and the
actual debt will be paid by either the Lessor or the Lessee, as appropriate, when the amount becomes known.

 

	24.12	Lease manager

 

The Lessor hereby notifies the
Lessee that it has appointed Avolon Aerospace Leasing Limited as its agent to act on its behalf under this Agreement generally. Accordingly,
the Lessor agrees that until the earlier of (i) the termination of this Agreement and (ii) written notification to the Lessee from the
Lessor to the contrary, the Lessee shall, without enquiry, be entitled to rely upon any notice or communication received from the Servicer
as if it had been received from the Lessor and any such notice or communication shall be treated as a notice or communication from the
Lessor for all purposes of this Agreement. For the avoidance of doubt, to the extent that the Lessee performs its obligations under this
Agreement in favour of the Servicer such performance shall discharge pro tanto the Lessee’s obligations to the Lessor under
this Agreement. However, except as provided in this Agreement, the Servicer’s appointment to act as lease manager shall not in any
way diminish any of the Lessee’s rights under this Agreement or render its obligations or liabilities under this Agreement more
onerous.

 

    	 	 	Avolon LATAM B787 Lease –
	 	– 73 –	Aircraft MSN 38891

     

    

 

	24.13	Delegation

 

The Lessor may delegate to the Servicer
or any other person or persons all or any of the rights, powers or discretions vested in it by this Agreement and any such delegation
may be made upon such terms and conditions as the Lessor in its absolute discretion thinks fit. Notwithstanding such delegation, the Lessor
remains responsible to the Lessee for the performance of its obligations under this Agreement and any other Transaction Document.

 

	24.14	Further assurances

 

		24.14.1	Each party shall, and shall use all reasonable endeavours
to procure that third parties shall, execute and sign such documents and do such acts and things as any other party shall reasonably request
in order to carry out the intended purpose of this Agreement or to establish, perfect, preserve or enforce that party’s rights under
this Agreement.

 

		24.14.2	Unless otherwise agreed in this Agreement, the reasonable
out-of-pocket expenses incurred by a party pursuant to this Clause 24.14 shall be borne by the party which makes a request hereunder.

 

	24.15	Amendments

 

The terms of this Agreement are
only capable of amendment with the written consent of the parties hereto and any such amendment will be binding on all parties.

 

	25.	LAW

 

	25.1	Law

 

This Agreement and any non-contractual
obligations arising out of or in connection with it shall be governed by and construed in accordance with English law.

 

	25.2	Jurisdiction

 

During the pendency of the Chapter
11 Cases, the Bankruptcy Court shall have exclusive jurisdiction over all disputes arising under or related to this Agreement, all other
Transaction Documents and any non-contractual obligation arising out of or in connection with any of them. The Lessor and the Lessee irrevocably
submit to and accept the jurisdiction of the Bankruptcy Court during the pendency of the Lessor’s Chapter 11 Case and, to the extent
the reference to the Bankruptcy Court is withdrawn, the U.S. District Court for the Southern District of New York. However, to the extent
the Bankruptcy Court (or, to the extent the reference to the Bankruptcy Court is withdrawn, the U.S. District Court for the Southern District
of New York) lacks jurisdiction over, or abstains from hearing, any such dispute, the Parties agree that only the English courts may hear
and adjudicate such dispute in accordance with this Agreement.

 

Following the earlier of the substantial
consummation of a plan for the Lessee or the closing of the Chapter 11 Cases the courts of England shall have exclusive jurisdiction to
settle any disputes arising out of or in connection with this Agreement and any non-contractual obligations arising out of or in connection
with this Agreement. For such purposes each party irrevocably submits to the jurisdiction of the English courts and waives any objection
to the exercise of such jurisdiction.

 

    	 	 	Avolon LATAM B787 Lease –
	 	– 74 –	Aircraft MSN 38891

     

    

 

	25.3	Process agents

 

		25.3.1	The Lessee appoints the London office of LATAM Airlines
Group S.A., currently located at Room 2038, Second Floor, D’Albiac House, Cromer Road, Heathrow Airport, London TW6 1SD, England,
as its agent for service of process in England to be served with court documents relating to this Agreement. The Lessee must maintain
a valid agent for receipt of process in England from the date of this Agreement until the Expiry Date and may not change the identity
of such agent without giving prior notice to the Lessor.

 

		25.3.2	The Lessee agrees that if its process agent does
not notify the Lessee about any court documents served on it, this will not affect the proceedings concerned.

 

		25.3.3	The Lessee agrees that court documents can be served
on it by faxing, posting or hand delivering a copy to its process agent at the address above.

 

		25.3.4	The Lessor appoints Bolt Burden, Providence House,
Providence Place, Islington, London, N1 0NT, England, (Attention: Matthew Miller and Timothy Lucas) as its process agent in England to
be served with court documents relating to this Agreement. The Lessor must maintain a valid agent for receipt of process in England from
the date of this Agreement until the Expiry Date and may not change the identity of such agent without giving prior notice to the Lessee.

 

		25.3.5	The Lessor agrees that if its process agent does not
notify the Lessor about any court documents served on it, this will not affect the proceedings concerned.

 

		25.3.6	The Lessor agrees that court documents can be served
on it by faxing, posting or hand delivering a copy to its process agent at the address above.

 

	25.4	Courts

 

Each party hereto agrees that:

 

		25.4.1	During the pendency of the Chapter 11 Cases, it will
not object to the Bankruptcy Court being used for any disputes regarding this Agreement;

 

		25.4.2	A Final Order of the Bankruptcy Court issued during
the pendency of the Chapter 11 Cases, regarding this Agreement is final and binding and can be enforced elsewhere in the world subject
to the exhaustion of any applicable appeals and subject to Applicable Regulations

 

		25.4.3	Following the earlier of the substantial consummation
of a plan for the Lessee or the closing of the Chapter 11 Cases, it will not object to the courts of England being used for any disputes
regarding this Agreement; and

 

		25.4.4	Following the earlier of the substantial consummation
of a plan for the Lessee or the closing of the Chapter 11 Cases, a judgment or order of a court of England regarding this Agreement is
final and binding and can be enforced elsewhere in the world, subject to Applicable Regulations.

 

	25.5	Lessor’s rights

 

		25.5.1	Following the earlier of the substantial consummation
of a plan for the Lessee or the closing of the Chapter 11 Cases, notwithstanding Clause 25.2 (Jurisdiction) above, the Lessor may
commence proceedings: (a) in any other court of competent jurisdiction;
and (b) concurrently in more than one jurisdiction. Each of the Lessor and the Lessee irrevocably submits to the jurisdiction of any such
court and waives any objection to the exercise of such jurisdiction.

 

    	 	 	Avolon LATAM B787 Lease –
	 	– 75 –	Aircraft MSN 38891

     

    

 

		25.5.2	Following the earlier of the substantial consummation
of a plan for the Lessee or the closing of the Chapter 11 Cases, notwithstanding Clause 25.2 (Jurisdiction) above, the Lessee may
commence proceedings: (a) in any other court of competent jurisdiction; and (b) concurrently in more than one jurisdiction, in relation
to any breach of (i) the Lessor’s covenant of quiet enjoyment contained in Clause 7.1 (Quiet enjoyment) or (ii) the Security
Trustee’s quiet enjoyment covenant contained in any Security Trustee’s Quiet Enjoyment Letter. Each of the Lessor and the
Lessee irrevocably submits to the jurisdiction of any such court and waives any objection to the exercise of such jurisdiction.

 

	25.6	Waiver of sovereign immunity

 

Each party hereto irrevocably and unconditionally:

 

		25.6.1	agrees that if the other party brings legal proceedings
against it or its assets in relation to this Agreement or any other Transaction Document no immunity from such legal proceedings (which
will be deemed to include without limitation, suit, attachment prior to judgment, other attachment, the obtaining of judgment, execution
or other enforcement) will be claimed by or on behalf of itself or with respect to its assets;

 

		25.6.2	waives any such right of immunity which it or its
assets now has or may in the future acquire; and

 

		25.6.3	consents generally in respect of any such proceedings
to the giving of any relief or the issue of any process in connection with such proceedings including, without limitation, the making,
enforcement or execution against any property whatsoever (irrespective of its use or intended use) of any order or judgment which may
be made or given in such proceedings.

 

	25.7	Cape Town Immunity

 

Each party hereto hereby waives
any immunity from suit, from the jurisdiction of any court or from any legal or judicial process or remedy and, without limiting the generality
of the foregoing, each party hereto hereby waives in accordance with Article XXII of the Cape Town Aircraft Protocol any sovereign immunity
from jurisdiction of the courts specified in Clause 25.2 (Jurisdiction) or relating to the enforcement of rights and interests
relating to the Aircraft, the Airframe and/or any Engine. This Clause 25.7 shall only be effective if the Cape Town Convention comes into
force in the State of Registration.

 

    	 	 	Avolon LATAM B787 Lease –
	 	– 76 –	Aircraft MSN 38891

     

    

 

		26.	CONFIDENTIALITY

 

The Lessor and the Lessee agree
that the Transaction Documents are to be kept confidential. Neither party (including its respective officers, directors, agents and advisors)
will disclose

any information from or in connection
with the Transaction Documents without the consent of the other which consent shall not be unreasonably withheld or delayed, except for:

 

		26.1.1	disclosures made by the Lessor to actual or potential
assignees and transferees who the Lessor expects to satisfy the assignment and transfer criteria in Clause 23 (Assignment and Transfer)
(as applicable), financiers and/or rating agencies or to their respective professional advisors, provided that, in each case, such persons
are required to have entered into a confidentiality agreement or are subject to professional obligations to maintain such confidentiality;

 

		26.1.2	disclosures made by either party to its professional
advisers (including lawyers), insurers, auditors, servicers, managers or as may be required by Applicable Regulations;

 

		26.1.3	disclosures made by the Lessor to its Affiliates;

 

		26.1.4	disclosures made by the Lessee to its Affiliates; and

 

		26.1.5	disclosures made to tax authorities following a request by a tax authority.

 

The confidentiality obligations
shall be subject to the Lessee’s obligations as a Chapter 11 Debtor and the Lessee shall be permitted to disclose a copy of this
Agreement to (i) the advisors for the Official Committee of Unsecured Creditors appointed in the Chapter 11 Cases on a “professional
eyes only” basis (ii) the lenders party to that certain Super-Priority Debtor-in-Possession Term Loan Agreement on a confidential
basis and (iii) the advisors to the Ad Hoc Group of LATAM Bondholders on a “professional eyes only” basis.

 

		27.	THIRD PARTY RIGHTS

 

The parties do not intend that
any term of this Agreement shall be enforceable solely by virtue of the Contracts (Rights of Third Parties) Act 1999 (the “Act”)
by any person who is not a party to this Agreement, provided that each Indemnitee may enforce its rights under this Agreement in
accordance with the terms of the Act. The parties may rescind, vary, waive, release, assign, novate or otherwise dispose of all or any
of their respective rights or obligations under this Agreement without the consent of any person who is not a party to this Agreement.

 

REDACTED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	 	Avolon LATAM B787 Lease –
	 	– 77 –	Aircraft MSN 38891

     

    

 

REDACTED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

THIS AGREEMENT has been entered into on the date shown
at the beginning of this Agreement.

 

    	 	 	Avolon LATAM B787 Lease –
	 	– 78 –	Aircraft MSN 38891

     

    

 

Schedule 1

 Definitions
and Interpretation

 

Part
A

 Definitions

 

In this Agreement:

 

Schedule 71“12 Year Structural
Check” has the meaning ascribed to it in Part B of Schedule 7.

 

1“Absolute Assignment” has the meaning
given to such term in Clause 23.3.1(d).

 

“Absolute Transfer” has the meaning given
to such term in Clause 23.3.1(c).

 

“Acceptance Certificate”
means the acceptance certificate in substantially the form of Schedule 5 (Form of Acceptance Certificate).

 

“Affiliate”
in relation to any person means any person directly or indirectly controlling, controlled by or under common control with that person.

 

“Agent” means,
as at the Delivery Date, J.P. Morgan AG as ECA facility agent and thereafter the person or persons appointed as agent of the Financiers
pursuant to the Financing Documents and any other person identified as an “Agent” for the purposes of this Agreement,
as may be notified by the Lessor to the Lessee from time to time.

 

“Agreed Value” means:

 

REDACTED

 

 

 

 

 

 

“Aircraft”
means the aircraft described in Schedule 2 (Aircraft Particulars) and Schedule 4Part A (Aircraft Specification) (and includes
a separate reference to all Engines, the APU, Parts and Aircraft Documents except where it would not make sense to interpret the reference
to Aircraft in that way).

 

“Aircraft Documents”
means the documents, data and records set out in the Annex to the Acceptance Certificate, all available documents of delivery of the Aircraft
from the Manufacturer, all available documents produced by the Previous Operator and all additions, renewals, revisions and replacements
required or permitted by this Agreement.

 

“Airframe” means the Aircraft, excluding
the Engines and the Aircraft Documents. “Airframe Manufacturer” means The Boeing Company.

 

“Airframe Warranties Agreement” means
the agreement entered into or to be entered into on or prior to the Delivery Date in respect of the Airframe Warranties.

 

    	 	 	Avolon LATAM B787 Lease –
	 	– 79 –	Aircraft MSN 38891

     

    

 

“Airframe Warranties”
means the package of airframe warranties specified in the Airframe Warranties Agreement.

 

“Airworthiness Directive”
means each airworthiness directive issued by any of the Aviation Authority, EASA or the FAA specifying conditions, limitations or corrective
actions to be taken in respect of the Aircraft.

 

“Anti-Corruption Laws”
means the US Foreign Corrupt Practices Act of 1977, as amended, and any other anti-bribery or anti-corruption law or regulation in any
jurisdiction applicable, in the case of the Lessor, to the Lessor and in the case of the Lessee, to the Lessee and any Permitted Sublessee,
the Financiers or the Aircraft.

 

“Anti-Money Laundering
Laws” means those money laundering statutes in any jurisdiction applicable, in the case of the Lessor, to the Lessor and in
the case of the Lessee, to the Lessee (including, but not limited to, Law 19.913) and the Lessor, any Permitted Sublessee, the Financiers
or the Aircraft, the rules and regulations thereunder and any applicable related or similar rules, regulations or guidelines issued, administered
or enforced by any governmental or regulatory agency.

 

“Applicable Regulations”
means any law, treaty, court order, regulation, official guideline, official directive or mandatory requirement imposed by any Government
Entity which takes effect in the relevant circumstances and, without limitation, includes any resolution, directive or embargo of the
United Nations, the United States of America, the European Union or any constituent member of any of those bodies.

 

“Approval
Order” means an order issued by the Bankruptcy Court approving the entry into of the Amended and Restated Letter of Intent
dated 30 July 2021 between the Lessor Guarantor and the Lessee in respect of the leasing of the Aircraft and the Other Aircraft.

 

“Approved Data”
means data that is acceptable to the Aviation Authority and includes Type certificate data and specification sheets, supplemental type
certificates (STC), Airworthiness Directives (AD), manufacturer’s approved data, FAA Designated Engineering Representative (DER)
data, EASA approved data under DOA (Design Organization Approval), Manufactures SB’s (Service Bulletins) or EO’s (Engineering
Order).

 

“Approved Interchange Agreement”
means any interchange agreement, sublease by the hour agreement or assignment of use agreement entered into from time to time by the Lessee
and a Leasing Affiliate which sets out the terms on which the Aircraft may be made available for interchange between the Lessee and such
Leasing Affiliate.

 

REDACTED

 

 

 

 

 

 

 

 

 

    	 	 	Avolon LATAM B787 Lease –
	 	– 80 –	Aircraft MSN 38891

     

    

 

REDACTED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

“APU” means
the auxiliary power unit installed in the Airframe on the Delivery Date until replaced in accordance with this Agreement and includes
any such replacement unit.

 

“APU Operating Hour”
means each hour or part thereof elapsing from the moment the APU is started to the moment when the APU is shut down. If possible to read,
such data shall be obtained from the APU Data Memory Module (DMM).

 

“APU Overhaul” has
the meaning ascribed to it in Schedule 7, Part B.1

 

“Assignment of Insurances”
means the assignment entered into, or to be entered into as the context may require, between the Lessee as assignor and the Lessor as
assignee.

 

“Aviation Authority”
means each of the authorities which, under the Applicable Regulations of the State of Registration may from time to time control or supervise
civil aviation in the State of Registration or exercise jurisdiction over matters relating to the Aircraft.

 

“Aviation Authority Letter”
means a letter (in a form which will be accepted by the Aviation Authority) from the Lessee or, as applicable, the Permitted Sublessee
addressed to the Aviation Authority, pursuant to which the Lessee or, as applicable, the Permitted Sublessee authorises the Lessor and/or
the Security Trustee to obtain from the Aviation Authority a general statement of account in relation to charged incurred by the Lessee
or, as applicable, the Permitted Sublessee in respect of all aircraft (including the Aircraft) operated by the Lessee or, as applicable,
the Permitted Sublessee under a lease agreement with the Lessor.

 

    	 	 	Avolon LATAM B787 Lease –
	 	– 81 –	Aircraft MSN 38891

     

    

 

“Bankruptcy Code” means Title 11 of the
United States Code.

 

“Bankruptcy Court” means the United
States Bankruptcy Court for the Southern District of New York.

 

“Bankruptcy Law” means the Bankruptcy
Code or any similar federal or state law for the relief of Debtors.

 

REDACTED

 

 

 

 

 

 

“Broker’s Letter
of Undertaking” means an undertaking from the Insurance Broker in the form as recognised by the Lloyds Insurance Broker’s
Committee or otherwise acceptable to the Lessor and the Security Trustee (acting reasonably) (it being understood that the Lessor shall
be responsible for liaising with the Security Trustee in relation to it determining its acceptability).

 

“Business Day” means:

 

		(a)	a day (other than a Saturday or Sunday) on which business
of the nature required by this Agreement is carried out in Dublin, Ireland and Santiago, Chile; and

 

		(b)	where used in relation to payments, a day (other than
a Saturday or Sunday) on which banks are open for business in New York and Santiago, Chile.

 

“Cape Town Convention”
means the Convention on International Interests in Mobile Equipment and the Protocol thereto on Matters Specific to Aircraft Equipment
signed at Cape Town, South Africa on 16 November 2001. References to any Articles of the Cape Town Convention refer to the English language
version of the Consolidated Text of the Cape Town Convention and the Aircraft Protocol attached to Resolution No. 1 of the Final Act of
the Diplomatic Conference to adopt the Cape Town Convention and Aircraft Protocol.

 

“Cargo Container Loading
Modification” means the modification using LD-4/LD-8 cargo as set out in Schedule 12.

 

“Chapter 11 Cases”
means the cases that Lessee and certain of its Affiliates commenced on 26 May 2020, 7 July 2020 or 9 July 2020, as applicable, by filing
voluntary Chapter 11 petitions in the Bankruptcy Court and the related parallel and ancillary proceedings.

 

“C Check” means
a base maintenance inspection of the Aircraft and performance of all necessary tasks (and resulting repairs, if any) required to clear
the Aircraft for 36 months, 7,500 Flight Hours and 5,000 Cycles or as otherwise indicated in the latest revision of the MPD and approved
by the Aviation Authority.

 

“Cycle” means
(i) with respect to the Airframe, one take-off and landing of the Aircraft, (ii) with respect to an Engine, one take-off and landing of
the aircraft on which the relevant Engine is installed (each “touch and go” will be one Cycle) and (iii) with respect to the
APU, one APU start and shut down.

 

    	 	 	Avolon LATAM B787 Lease –
	 	– 82 –	Aircraft MSN 38891

     

    

 

“Debtor” or
“Debtors” means, individually or collectively, each of the debtors in the Chapter 11 Cases.

 

“Default” means
an Event of Default or any event which, with the giving of notice, lapse of time, determination of materiality or fulfilment of any other
applicable condition, may constitute an Event of Default.

 

“Default Rate” means the Prime Rate plus
zero point five per cent (0.5%) per annum..

 

“Delivery”
means the delivery of the Aircraft to and its acceptance by the Lessee under this Agreement, as evidenced by execution of the Acceptance
Certificate by the Lessee.

 

“Delivery Date” means the date on which
Delivery takes place.

 

“Delivery Location”
means an approved MRO in the continental United States of America or such other location as mutually agreed by the Lessor and the Lessee.

 

“DER Repair” means
a repair which has not been approved for use on the Aircraft by the Manufacturer.

 

“Deregistration Power
of Attorney” means a duly executed irrevocable deregistration power of attorney from the Lessee and, if applicable, any Permitted
Sublessee, in favour of the Lessor and/or the Security Trustee, as applicable, in form and substance reasonably satisfactory to the Lessor
and Security Trustee (it being understood that the Lessor shall be responsible for liaising with the Security Trustee in relation to any
requested consent).

 

“DGAC Chile”
means the Dirección General de Aeronáutica Civil de Chile, or any Government Entity that is the successor thereto.

 

“Dollars” or “$” means
the lawful currency of the United States of America.

 

“EASA” means
the European Aviation Safety Agency or any other organisation or authority that, under the laws of the European Union, shall from time
to time have jurisdiction over, amongst other things, aircraft airworthiness standards for the European Union.

 

“Engine” means
each engine (whether or not installed on the Airframe) specified in the Acceptance Certificate unless and/or until replaced in accordance
with this Agreement.

 

“Engine Life Limited Parts” has the meaning
ascribed to it in Part B of Schedule 7.

 

“Engine LLPs”
means those Parts, defined by the Engine Manufacturer in the engine manual, or by EASA or the FAA or the Aviation Authority through Airworthiness
Directives, requiring retirement and subsequent replacement on a mandatory basis prior to or upon the expiration of the Engine Manufacturer’s
certified life, such life being expressed in terms of Cycles, Flight Hours or calendar time, as applicable.

 

“Engine Manufacturer” means Rolls-Royce
plc.

 

“Engine Performance Restoration
Shop Visit” has the meaning ascribed to it in Part B of Schedule 71.

 

“Engine Replacement Period”
means the period starting twenty-four (24) months prior to the Redelivery Date and ending on the Redelivery Date.

 

    	 	 	Avolon LATAM B787 Lease –
	 	– 83 –	Aircraft MSN 38891

     

    

 

“Engine Warranties”
means a package of engine warranties specified in the Engine Warranties Agreement.

 

“Engine Warranties Agreement”
means the agreement entered into or to be entered into on or prior to the Delivery Date, between the Engine Manufacturer, Lessor, the
Security Trustee (if applicable), the Lessee and/or the Owner (as the case may be) in relation to the Engine Warranties.

 

“EU ETS Legislation”
means the EU Directive EC/2008/101 regarding the European Union Emissions Trading Scheme and its application to aviation and all related
implementation legislation.

 

“Event of Default”
means an event specified in Clause 19 (Events of Default).

 

“Excluded Country”
means any state, country or jurisdiction which, at any relevant time, is subject to any sanction, resolution, order or embargo (howsoever
described) of:

 

		(a)	the United Nations Security Council;

 

		(b)	any Government Entity of the European Union;

 

		(c)	the United States of America, the State of Registration
or the Habitual Base of the Aircraft; or

 

		(d)	any Government Entity having jurisdiction over the
Lessor, the Lessee, the Financiers or the Aircraft,

 

in each case, the effect of which,
unless any applicable consents, exemptions or licences have been obtained in relation to the Aircraft, prohibits the Lessor, the Owner,
the Lessee and/or any Permitted Sub-Lessee from operating, exporting and or using the Aircraft to, from or in that state, country or jurisdiction.

 

“Excluded Tax”
means Taxes in relation to the Lessor or the Owner to the extent such Taxes are:

 

		(a)	imposed as a direct result of activities of the Lessor
or the Owner in the jurisdiction imposing the liability unrelated to:

 

		(i)	the Lessor’s or the Owner’s dealings with the Lessee;

 

		(ii)	to the transactions contemplated by this Agreement or the Transaction Documents;

 

		(iii)	any Permitted Sublease or Approved Interchange Agreement; and

 

		(iv)	the operation of the Aircraft by the Lessee or any Permitted Sublessee; or

 

		(b)	imposed on the net income, profits or gains of the
Lessor or the Owner by any Government Entity in their respective state of incorporation and/or the jurisdiction in which they are resident
for tax purposes, other than:

 

		(i)	Taxes payable by the Lessor or the Owner as a direct result of the Lessor or the Owner being required
to include in its taxable income any amount attributable to any improvement, alteration,
substitution or addition to the Aircraft, except to the extent that any taxable profit realised by the Lessor or, as the case may be,
the Owner is directly attributable to any improvement, alteration, substitution or addition to the Aircraft effected by the Lessee pursuant
to any provision of this Agreement;

 

    	 	 	Avolon LATAM B787 Lease –
	 	– 84 –	Aircraft MSN 38891

     

    

 

		(ii)	Taxes which are imposed on the Lessor or the Owner by reason of the presence, location,
maintenance, registration, use or operation of the Aircraft, any Engine, the Airframe or any Part in such jurisdiction;

 

		(iii)	Taxes which are imposed on the Lessor or the Owner by reason of or consequent upon
any Default or any breach by the Lessee of, or any failure by the Lessee to perform any of its obligations under, or any misrepresentation
made by the Lessee in, this Agreement; or

 

		(c)	Taxes which are imposed on the net income, profits or
gains of the Lessor or the Owner by any Government Entity in any jurisdiction other than in their respective state of incorporation and/or
the jurisdiction in which they are resident for tax purposes, subject to the qualifications set out in sub-paragraphs (b)(i), (ii) and
(iii) above and subject to the additional qualification that this paragraph (c) shall not include any such Taxes to the extent they are
imposed:

 

		(i)	as a result of the presence in the jurisdiction imposing the Tax of the Lessee
or any Permitted Sublessee; or

 

		(ii)	as a result of the payment by the Lessee from the jurisdiction imposing the Tax
of any amount due under this Agreement or any other Transaction Document; or

 

		(d)	imposed solely as a result of an event occurring
after the Expiry Date which is not related to the Lessor’s dealings with the Lessee or the transactions contemplated by this Agreement
or the operation of the Aircraft by the Lessee; or

 

		(e)	imposed with respect to any period commencing or event
occurring before Delivery; or

 

		(f)	caused by the Lessor’s or the Owner’s
fraud, wilful misconduct or Gross Negligence; or

 

		(g)	a Tax liability which would have arisen even if the
Transaction Documents had not been entered into and such Tax liability is unrelated to the transactions contemplated by any Transaction
Documents; or

 

		(h)	caused by a breach or default by the Lessor or the
Owner of its express obligations under a Transaction Document which does not result from any act or omission of any person other than
the Lessor or the Owner; or

 

		(i)	caused by a breach by the Lessor or the Owner of
any express representation or warranty made under this Agreement or under any other Transaction Document which does not result from any
act or omission of any person other than the Lessor or the Owner; or

 

    	 	 	Avolon LATAM B787 Lease –
	 	– 85 –	Aircraft MSN 38891

     

    

 

		(j)	Taxes which arise as a result of a reasonably avoidable
delay or failure by the Lessor or the Owner in filing any necessary tax returns required by law, in paying the relevant Taxes required
by law or, in completing any necessary tax returns required by law it is obliged by law to file (provided the Lessor or the Owner, as
the case may be, was aware of such obligation to file a tax return or make a payment of tax), unless such delay, failure or error is caused
by the breach or failure of the Lessee to provide any information that is required for these purposes or that the Lessor may reasonably
request; or

 

		(k)	Taxes which arise solely as a result of events or
circumstances occurring during any period during which the Lessee does not have possession of the Aircraft as a result of a breach by
the Lessor of its obligations pursuant to Clause 7.1 (Quiet enjoyment) or any breach by the Security Trustee of its quiet enjoyment
covenant contained in any Security Trustee’s Quiet Enjoyment Letter; or

 

		(l)	Taxes which arise as a result of the acquisition of
the Aircraft (or Delivery), any voluntary sale, assignment, transfer or other disposition by the Lessor or the Owner of the Aircraft or
any interest therein unless such sale, assignment, transfer or other disposition occurs in connection with, or arises following a Default;
or

 

		(m)	Taxes which arise with respect to any period or event
occurring after Redelivery in accordance with the conditions set out in this Agreement (except to the extent any such Tax is attributable
to such Redelivery) and is unrelated to any event occurring prior to such Redelivery and unrelated to the Lessor’s dealings with
the Lessee pursuant to the Transaction Documents or the transactions contemplated by the Transaction Documents; or

 

		(n)	Taxes which arise as a result of any financing arrangement
entered into by the Lessor or the Owner with respect to the Aircraft including any amounts payable by the Lessor or the Owner under or
in connection with the Financing Documents; or

 

		(o)	incurred by the Owner (if the Owner is not the Lessor)
except to the extent that such Tax is a tax imposed on the Owner in circumstances in which, but for the existence of the Owner and any
Head Lease, the Lessor would have incurred that liability and the Lessee would have been obliged to indemnify the Lessor against that
liability.

REDACTED

 

 

 

 

 

 

 

 

 

 

 

whichever is the earlier or, if the Redelivery of the
Aircraft has been extended pursuant to Clause 18.2.1(a), the actual Redelivery Date.

 

“FAA” means the Federal Aviation Administration
of the United States of America and any successor thereof.

 

    	 	 	Avolon LATAM B787 Lease –
	 	– 86 –	Aircraft MSN 38891

     

    

 

“Final
Order” means an order or judgment, the operation or effect of which has not been reversed, stayed, modified or amended,
and as to which order or judgment (or any reversal, stay, modification or amendment thereof) (a) the time to appeal, seek certiorari or
request reargument or further review or rehearing has expired and no appeal, petition for certiorari or request for reargument or further
review or rehearing has been timely filed, or (b) any appeal that has been or may be taken or any petition for certiorari or request for
reargument or further review or rehearing that has been or may be filed has been resolved by the highest court to which the order or judgment
was made, and no further appeal or petition for certiorari or request for reargument or further review or rehearing has been or can be
granted; provided, however, with respect tp either of the foregoing, no order or judgment shall fail to be a Final Order solely because
of the possibility that a motion pursuant to Rule 60 of the Federal Rules of Civil Procedure or Bankruptcy Rule 9024 may be filed with
respect to such order or judgment.

 

“Financier”
means, as at the Delivery Date, each of Her Britannic Majesty’s Secretary of State acting through the Export Credits Guarantee Department
(operating as UK Export Finance), JPMorgan Chase Bank, N.A., National Westminster Bank plc. and CaixaBank (or each of their permitted
transferees and assigns) as ECA Lenders, J.P. Morgan AG (or its permitted transferees and assigns) in its capacity as ECA Facility Agent
and Wilmington Trust (London) Limited (or its permitted transferees and assigns) in its capacity as Security Trustee, and any other person
or persons through which the Lessor or the Owner may from time to time finance or refinance its interest in the Aircraft and/or for whose
benefit security over, or rights relating to, the Aircraft and/or any Transaction Document may be granted (including by way of a declaration
of trust) by the Lessor or the Owner or at its request, and includes the Security Trustee and the Agent as well as any underwriter, placement
agent or syndication agent, any export credit agency and any other person identified as a “Financier” for the purposes of
this Agreement, as may be notified by the Lessor to the Lessee from time to time.

 

“Financing Documents”
means each present and/or future document which is from time to time related to any financing of the Aircraft (including for such purpose
each mortgage and any other security document providing for a Security Interest in the Aircraft or any Transaction Document, or leasing
arrangements whether or not constituting a financing and any documents ancillary thereto).

REDACTED

 

 

 

 

 

 

 

 

 

 

 

 

 

“Flight Hour” means:

 

		(a)	with respect to the Airframe, each hour or part of
an hour elapsing from the moment the wheels of the Aircraft leave the ground on take off until the wheels of the Aircraft next touch the
ground; and

 

    	 	 	Avolon LATAM B787 Lease –
	 	– 87 –	Aircraft MSN 38891

     

    

 

		(b)	with respect to an Engine, each hour or part of an
hour such Engine is operated, elapsing from the moment the wheels of the aircraft on which such Engine is installed leave the ground until
the wheels of such aircraft next touch the ground.

 

“Government Entity”
means:

 

		(a)	any national government, political subdivision thereof, or local jurisdiction therein;

 

		(b)	any instrumentality, board, commission, court, or
agency of any thereof, however constituted; and

 

		(c)	any association, organization, or institution of
which any of the above is a member or to whose jurisdiction any thereof is subject or in whose activities any of the above is a participant.

 

“Gross Negligence”
means any intentional action or decision of a person which is taken or made by such person with reckless disregard for the consequences
of such action or decision.

 

“Habitual Base”
means: (i) Brazil; (ii) Chile; (iii) the principal operations base of any Permitted Sublessee provided such base is not in a country or
countries which is an Excluded Country; or (iv) subject to the prior written consent of the Lessor acting reasonably, any other country
or countries not being an Excluded Country in which the Aircraft is for the time being habitually based (and for this purpose, the Aircraft
shall be “habitually based” at the location from which the Aircraft departs on a flight (or a series of flights) and to which
it customarily returns and remains between such flights (or series of flights)).

 

“Head Lease” has
the meaning given to such term in Clause 23.3.1(b).

 

“Hearing
Date” means the date of the Bankruptcy Court hearing date in August 2021. “IATA” means the International
Air Transport Association.

 

“IDERA” means
an irrevocable deregistration and export request authorisation suitable for filing with the relevant Aviation Authority, substantially
in the form referred to in the Cape Town Convention or otherwise in form and substance reasonably satisfactory to the Lessor.

 

“IFRS” means the
international financial reporting standards.

 

“Indemnitee”
means the Lessor, the Owner, each Financier, the Lessor Guarantor and any and each of their respective successors, permitted assigns,
shareholders, subsidiaries, affiliates, partners, directors, agents, employees, members and officers and each permitted transferee of
each Financier.

REDACTED

 

 

 

 

 

“Insurance”
means the insurance cover (including any reinsurance) to be taken out under Clause 17 (Insurance) and Schedule 9 (Insurance
Requirements).

 

“Insurance Broker”
means Marsh Ltd or Willis Limited London or any other insurance broker with insurers of recognised standing in London or New York who
normally participate in aviation insurances in the leading international insurance markets and led by internationally recognised and reputable
underwriters approved by the Lessor (acting reasonably) for the purposes of this Agreement.

 

    	 	 	Avolon LATAM B787 Lease –
	 	– 88 –	Aircraft MSN 38891

     

    

 

“Invoice Date” has the meaning given
to such term in Part A, Schedule 7.

 

“Landing Gear”
means the landing gear assembly of the Aircraft, excluding any rotable components.

 

“Landing Gear Overhaul” has the meaning
ascribed to it in Part B of Schedule 71.

 

“Lease Period”
means the period commencing on the Delivery Date and ending on the Expiry Date.

 

“Leasing Affiliate” means any of:

 

		(a)	the airlines specified in Part B of Schedule 11 for so long as any such airline
is an Affiliate of the Lessee;

 

		(b)	the Subsidiaries of the Lessee;

 

		(c)	the Affiliates of the Lessee;

 

		(d)	any other person controlled by the Lessee;

 

provided
that, in each case, such person (i) is a commercial air carrier possessing at all relevant times whilst the Aircraft is operated
by such person all necessary authorisations (including without limitation, those required to operate the Aircraft), consents and
licences; (ii) is not incorporated in, or does not have its principal place of business in an Excluded Country (iii) is not a
Sanctions Target and (iv) is not insolvent (excluding the Chapter 11 Cases, the related parallel and ancillary proceedings and any
related events or circumstances in existence as of the date of this Agreement).

 

For the purpose of this definition,
the Lessee shall be deemed to control another person if (i) the Lessee possesses directly or indirectly the power to direct the management
or policies of such other person whether through (x) the ownership of voting rights, (y) control of the board (including control of its
composition) of the other person, or (z) indirect control of (x) and (y), or (ii) such other person would, under relevant accounting principles,
be consolidated for accounting purposes with Lessee.

REDACTED

 

 

“Lessee Guarantor”
has the meaning give to such term in Clause 23.2.

 

“Lessee Illegality Event”
means it is or will become unlawful for the Lessor or the Lessee to give effect to any of its obligations expressed to be assumed by it
in this Agreement or any other Transaction Document or to continue this Agreement or the leasing of the Aircraft hereunder or for the
Lessor to exercise any of its rights or remedies under this Agreement or any other Transaction Document, or an event contemplated by Clause
19.1.16 or 19.1.17 occurs other than as a result of the act or omission of the Lessee or any Permitted Sublessee, and in each case such
circumstances do not constitute a Lessor Illegality Event.

 

“Lessee Termination Event”
has the meaning given to such term in Clause 28.

 

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	 	– 89 –	Aircraft MSN 38891

     

    

 

“Lessor Guarantee”
means the guarantee dated on or about the date of this Agreement issued by the Lessor Guarantor in favour of the Lessee in respect
of the Lessor’s obligations under the Transaction Documents to which it is a party.

 

“Lessor Guarantor” means Avolon Aerospace
Leasing Limited.

 

“Lessor Temporary Engine” has the meaning
given to it in Clause 10.5.1.

 

“Lessor Replacement Engine” has the meaning
given to such term in Clause 10.5.2.

 

“Lessor Replacement Engine
Delivery Date” has the meaning given to such term in Clause 10.5.2.

 

“Lessor Illegality Event”
means it is or will become unlawful for the Lessor to give effect to any of its obligations expressed to be assumed by it in this Agreement
or any other Transaction Document or to continue this Agreement or the leasing of the Aircraft hereunder or to exercise any of its rights
or remedies under this Agreement or any other Transaction Document, and such circumstances apply solely in the Lessor’s and/or the
Lessor Gurantor’s jurisdiction of incorporation and do not apply to, or in respect of, another jurisdiction.

 

“Lessor Lien” means any Security Interest
over or in respect of the Aircraft or any Transaction Document:

 

		(a)	created by the Lessor or the Owner or through the Lessor or the Owner,
including in connection with the financing of the Aircraft; or

 

		(b)	created by or through any Financier; or

 

		(c)	resulting from acts of or claims against the Lessor
or the Owner or any Indemnitee not arising as a result of the operation of the Aircraft or the transactions contemplated by or permitted
under this Agreement (other than as a consequence of the occurrence of an Event of Default) or to any act or omission of the Lessee; or

 

		(d)	resulting from an Excluded Tax.

 

“Life Limited Parts”
or “LLPs” means those Parts, defined by the Manufacturer or by EASA, the FAA or the Aviation Authority, requiring retirement
and subsequent replacement on a mandatory basis prior to, or upon the expiration of, the Manufacturer’s certified life, such life
being expressed in terms of Cycles, Flight Hours or calendar time, as applicable.

 

“Loss” means any
liabilities, obligations, settlements, losses, actions, claims, charges, proceedings, indemnity payments, damages, penalties, fines, fees
(including, without limitation, legal fees and irrevocable VAT thereon, if applicable), adverse judgments, orders, other sanctions, costs
and expenses of whatsoever kind and nature.

 

“Loss Payee” means the Security
Trustee or, such other person as the Lessor notifies the Lessee in writing from time to time.

 

“Maintenance Performer” means the
maintenance performer for the Airframe, the Parts and the Engines certified by the Aviation Authority.

 

“Maintenance Planning Document”
or “MPD” means the latest revision of the maintenance planning document issued by the Manufacturer setting out the
maintenance tasks for the Aircraft and the
thresholds and/or intervals at which such tasks should be completed.

 

    	 	 	Avolon LATAM B787 Lease –
	 	– 90 –	Aircraft MSN 38891

     

    

 

“Maintenance Programme”
means the maintenance programme of the Lessee or any Permitted Sublessee which for the Aircraft shall be substantially in accordance with
the MPD and approved by the Aviation Authority as amended from time to time in accordance with the provisions of Clause 13.5.4 (Aircraft
Documents).

 

“Manufacturer”
means, with respect to the Airframe, the Airframe Manufacturer, with respect to the Engines, the Engine Manufacturer and with respect
to any Part, the original equipment manufacturer of such Part.

 

“Manufacturer Warranties”
means both the Airframe Warranties and the Engine Warranties.

 

“Material Adverse Change”
means a material adverse change in the financial condition of the Lessee since 30 July 2021.

 

“Minimum LC Rating”
means a long-term unsecured rating of BBB from Standard and Poors’ or A from Moody’s Investor Services.

REDACTED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

“Modifications”
means the modifications set out in Schedule 12.

 

“Modifications Maintenance
Performer” has the meaning given to such term in Clause 13.2.3.

 

“Non OEM Part”
means a replacement Part which has not been either (a) manufactured by the Manufacturer or the Engine Manufacturer, as appropriate or
(b) approved and warranted in writing by the Manufacturer or the Engine Manufacturer, as appropriate.

 

    	 	 	Avolon LATAM B787 Lease –
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“Notice and Acknowledgement”
means a notice and acknowledgement entered into, or to be entered into as the context may require, between any of the Lessor, the Security
Trustee and the Owner and the Lessee substantially in such form as may be reasonably required by the Lessor or the Security Trustee.

 

“OEM” means the
original equipment manufacturer.

 

“OEM Part”
means a part that has been manufactured by the same Manufacturer of the Part it replaces.

 

“Original Financial Statements”
means the Lessee’s consolidated audited financial statements for its financial year ended 31 December 2020.

REDACTED

 

 

 

 

 

“Other Agreements”
means each of the aircraft lease agreements between the Lessor (or an Affiliate of the Lessor) and the Lessee (or an Affiliate of the
Lessee) relating to the Other Aircraft.

 

“Owner” means,
as at the Delivery Date, Darcy Aviation Limited and thereafter such other person as the Lessor may notify to the Lessee as the owner of
the Aircraft from time to time.

 

“Part” means
each component, furnishing or part (other than a complete Engine) supplied with the Aircraft on the Delivery Date, in each case until
replaced in accordance with this Agreement and includes any such replacement, and all technical data (including historical, operational
and maintenance records related thereto when required by the Aviation Authority).

REDACTED

 

 

 

 

 

 

 

 

 

 

 

 

“Permitted
LC Bank” means any major international bank reasonably satisfactory to the Lessor for the purposes of issuing or confirming
a Security Deposit Letter of Credit with a credit rating equal to or higher than the Minimum LC Rating.

 

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	 	– 92 –	Aircraft MSN 38891

     

    

 

“Permitted Security Interest”
means:

 

		(a)	any lien for Taxes not assessed or, if assessed, not
yet due and payable, or which are being contested in good faith by appropriate proceedings;

 

		(b)	any lien of a repairer, carrier, hangar keeper, mechanic,
material-man, carrier, employee or other similar lien arising in the ordinary course of business by operation of law in respect of obligations
which are not overdue or are being contested in good faith by appropriate proceedings;

 

		(c)	any Lessor Lien;

 

		(d)	any lien arising in respect of the operation of the Aircraft pursuant to
the Previous Lease;

 

		(e)	any Security Interest arising from the Financing Documents and the Transaction
Documents,

 

but, in each case of (a) and (b) above, only if:

 

		(i)	adequate reserves have been provided by the Lessee for the payment of the Taxes
or obligations and such reserves have been evidenced to the Lessor to its reasonable satisfaction; and

 

		(ii)	such proceedings, or the continued existence of the lien, do not, in the reasonable
opinion of the Lessor, give rise to any likelihood of the sale, forfeiture or other loss of possession or title in the Aircraft or any
interest in the Aircraft or of criminal liability on any Indemnitee.

 

“Permitted Sublease” has the meaning
given to such term in Clause 9.4 (Permitted subleasing).

 

“Permitted Sublessee” means, at any time,:

REDACTED

 

 

 

 

 

 

 

 

 

 

 

“Previous Lease”
means the operating lease agreement dated 16 January 2015 originally between CIT Aerospace International, as lessor, and Norwegian Air
International Limited as lessee, as novated, amended and supplemented from time to time and ultimately between the Lessor as lessor and
the Previous Operator as lessee and as terminated on 18 March 2021.

 

“Previous
Operator” means Torkefjorden Leasing Limited, an Affiliate of Norwegian Air Shuttle ASA .

 

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	 	– 93 –	Aircraft MSN 38891

     

    

 

“Prime Rate”
means on any date that the same is to be determined the $ “prime rate” as published in the Wall Street Journal on such date,
and, in any case, if the rate is less than zero, the Prime Rate shall be deemed to be zero.

 

“Protocol”
means the Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific to Aircraft Equipment, concluded
in Cape Town South Africa, on 16 November 2001 (utilising the English-language version thereof).

 

“RAB” means
the Brazilian Aeronautical Registry, or any Government Entity that is the successor thereto.

 

”Redelivery”
means the redelivery of the Aircraft to the Lessor in compliance with the terms of this Agreement.

 

“Redelivery Acceptance Certificate”
means the redelivery acceptance certificate in substantially the form of Schedule 6 (Form of Redelivery Acceptance Certificate).

 

“Redelivery Condition”
means the condition in which the Aircraft must be on Redelivery, as described in Part B of Schedule 10 (Redelivery).

 

“Redelivery Date” means the date on which
the Lessor accepts the Aircraft for Redelivery.

 

“Redelivery Location”
means Sao Paulo, Brazil or Santiago, Chile (at the Lessee’s option) or such other location as the Lessor and the Lessee may agree.

 

“Redelivery Procedure”
means the inspection and other procedures to verify that the Aircraft is in the Redelivery Condition, as described in Part A of Schedule
10 (Redelivery).

 

“Removed
Engine” means an Engine which has been removed from the Airframe and is to be replaced by a Replacement Engine in accordance
with Clauses 10.3 (Permanent replacement of Engines and Parts).

 

“Rent” means
all amounts payable as rent in accordance with Clause 5.1 (Rent) and Part A of Schedule 7 (Rent).

 

“Rent Date” means the first day of each
Rent Period.

 

“Rent Period” means each period ascertained
in accordance with Clause 5.2 (Rent Periods).

 

“Replacement Engine”
means, where it is intended that that engine will become an Engine, an engine:

 

		(a)	which is serviceable, airworthy and of the same manufacture
and model as, or an improved or advanced version of, the Removed Engine it is replacing, approved by the Manufacturer for operational
use on the Airframe (assuming that Removed Engine it is replacing was in the condition and repair in which it is required to be maintained
under this Agreement);

 

		(b)	in respect of which the Lessee has such details as
to the source and maintenance records of the replacement engine as are required by Applicable Regulations;

 

		(c)	which has equivalent or better less time elapsed
since the last engine performance restoration and remaining equivalent warranty status as the Engine it replaces;

 

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		(d)	which has as much useful life available until the
next scheduled maintenance for performance restoration as the Engine it replaces;

 

		(e)	in respect of which the Lessee can provide to the
Lessor full details as to its source and full maintenance records;

 

		(f)	with complete certified back-to-birth records for its Life Limited Parts;

 

		(g)	for which the Lessee has documentation (and shall
provide the same to the Lessor promptly upon request) certifying compliance with all applicable Aviation Authority requirements, including,
without limitation:

 

		(i)	a release certificate and, if not indicated on such release certificate, a teardown
report or documentation indicating time since last maintenance requirement (with respect to a time controlled part) and a description
of work accomplished with respect to such part by a Maintenance Performer;

 

		(ii)	overhaul records;

 

		(iii)	documentation of modification status and compliance with Airworthiness Directives;

 

		(iv)	in the case of Engine Life Limited Parts, a complete service history (including
full “back to birth” traceability) in compliance with OEM standards; and

 

		(v)	any other associated documentation relating to the maintenance and repair status
of such replacement part;

 

		(h)	which is of an equivalent or greater condition, value,
modification status and utility as, and has not accumulated more Engine Flight Hours or Cycles than the Removed Engine it is replacing
(assuming that the Removed Engine it is replacing was in the condition and repair in which it is required to be maintained under this
Agreement);

 

		(i)	which is suitable for installation and use on the
Airframe without impairing the value or utility of the Airframe (assuming the Airframe is in the condition in which it is repaired to
be maintained under this Agreement);

 

		(j)	which has not been involved in any incident or accident;

 

		(k)	which is free from any Security Interests (other than
Permitted Security Interests) and for which the Lessee can provide the Lessor such evidence of title as the Lessor or Security Trustee
may reasonably request; and

 

		(l)	which shall not contain any Non OEM Part parts or DER Repairs.

 

“Replacement Part” means a part, component,
furnishing, appliance, module, accessory, instrument or other item of equipment (not being an Engine module):

 

		(a)	which is serviceable, airworthy and of the same manufacture
and model as or, an improved or advanced version of, and in equivalent or better operating condition as and of at least the same condition,
value, modification status and utility as the Part that it is replacing (assuming that that replaced Part was in the condition and repair
in which it is required to be maintained under this Agreement);

 

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		(b)	in respect of which the Lessee has such details as
to the source and maintenance records of the replacement part as are required by Applicable Regulations and in the case of Life Limited
Parts that a complete service history is available (including traceability “back to birth”);

 

		(c)	for which the Lessee has documentation (and shall
provide the same to the Lessor promptly upon request) certifying compliance with all applicable Aviation Authority requirements, including,
without limitation, if applicable:

 

		(i)	a release certificate and, if not indicated on such release certificate, a teardown
report or documentation indicating time since last maintenance requirement (with respect to a time controlled part) and a description
of work accomplished with respect to such part by a Maintenance Performer;

 

		(ii)	overhaul records;

 

		(iii)	documentation of modification status and compliance with Airworthiness Directives;

 

		(iv)	in the case of Life Limited Parts, a complete service history (including full “back
to birth” traceability) in compliance with OEM standards; and

 

		(v)	any other associated documentation relating to the maintenance and repair status
of such replacement part;

 

		(d)	which is free from any Security Interests (other
than Permitted Security Interests) and for which the Lessee can provide the Lessor such evidence of title as the Lessor or Security Trustee
may reasonably request;

 

		(e)	subject to Clause 10.4 (Approved Non-OEM Parts),
which has had all repairs approved by the OEM; and

 

		(f)	which has not been involved in any incident or accident.

 

“Requisitioning Period”
means any period from the date when the Aircraft is requisitioned for use to the earlier of (a) the Redelivery of the Aircraft to the
Lessee and (b) payment of the Agreed Value by the Lessee.

 

REDACTED

 

 

 

 

 

 

 

 

 

“Sanctions”
means: (i) United Nations sanctions imposed pursuant to any United Nations Security Council Resolution; (ii) U.S. sanctions administered
by the Office of Foreign Assets Control of the U.S. Department of the Treasury (“OFAC”); (iii) any other sanctions
laws and regulations applicable to the Lessee or to the Aircraft and (iv) any Government Entity of the European Union.

 

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“Sanctions Target”
means a target or subject of Sanctions, including, without limitation, any person or entity designated as a Specially Designated National
and Blocked Person or included in the annex to the US Executive Order No. 13224 on Terrorist Financing: Blocking Property and Prohibiting
Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism, issued 23 September 2001, as amended by Order 13268 by
the Office of Foreign Assets Control of the U.S Department of the Treasury (OFAC).

 

“Scheduled Delivery Date”
means a day in the Scheduled Delivery Month to be notified by the Lessor to the Lessee in writing not less than two (2) weeks prior to
the commencement of the Scheduled Delivery Month.

 

“Scheduled Delivery Month”
means November 2021 or such later month as the Lessor and the Lessee may agree.

REDACTED

 

 

 

 

 

“Security Interest”
means any mortgage, charge, assignment by way of security, pledge, conditional sale, encumbrance of any kind, lien, including tax liens,
mechanics liens and any liens that attach by operation of law, declaration of trust or any other arrangement which has the effect of giving
another person any security claim or interest.

 

“Security Transfer”
has the meaning given to such term in Clause 23.3.1(a).

 

“Security
Trustee” means, as at the Delivery Date, Wilmington Trust (London) Limited (or its permitted transferees and assigns)
in its capacity as security trustee or such other person or persons appointed as security trustee, collateral
agent or similar representative for any of the Financiers and any other person identified as a “Security Trustee” for the
purposes of this Agreement, as notified by the Lessor to the Lessee from time to time.

 

“Security Trustee’s
Quiet Enjoyment Letter” means any quiet enjoyment letter issued by any Security Trustee substantially in the form of Clause
7.1 (Quiet enjoyment) and otherwise in such form as may be agreed between the Lessor and the Lessee (acting reasonably).

 

“Service Bulletins”
means publications from any relevant Manufacturer recommending or requiring that the Aircraft be inspected or modified.

 

“Servicer” means:

 

		(a)	Avolon Aerospace Leasing Limited; and/or

 

		(b)	any other lease manager which is of good industry
standing and is reputable and experienced in commercial aircraft leasing and which is not (and is not related to) an airline in competition
with the Lessee or any Leasing Affiliate, providing services to the Lessor or the Owner related to the Aircraft or the Transaction Documents,
identified as a “Servicer” for the purposes of this Agreement, as may be notified in writing by the Lessor to the Lessee
from time to time.

 

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“State of Registration”
means (i) the state of registration of the Lessee, (ii) Brazil or (iii) such other country or state of registration of the Aircraft in
which the Aircraft is permitted to be registered in accordance with Clause 9.4 (Permitted subleasing).

 

“Subordination Agreement”
means any subordination agreement entered into between the Permitted Sublessee, the Lessee, the Owner and/or the Lessor (as the case may
be) and, if applicable, the Security Trustee in relation to a Permitted Sublease in form and substance reasonably acceptable to the Lessor.

 

“Subsidiary” means:

 

		(a)	in relation to any reference to accounts, any company
whose accounts are consolidated with the accounts of the Lessee in accordance with accounting principles generally accepted under accounting
standards of Chile;

 

		(b)	for any other purpose, an entity from time to time:

 

		(i)	of which another has direct or indirect control or owns directly or indirectly more
than fifty per cent. (50%) of the voting share capital; or

 

		(ii)	which is a direct or indirect subsidiary of another under the laws of the jurisdiction
of its incorporation.

 

For the purpose of this defined
term, “control” means the power to direct the management and the policies of the entity whether by control of the management,
board of directors or similar governing body of such entity or by ownership of or rights over the voting capital of such entity.

 

“TAM” means TAM
Linhas Aéreas S.A.

 

“Tangible Net Worth”
means, in respect of any person, the aggregate amount paid up or credited as paid up on such person’s issued share capital and reserves
(including any share premium account, capital redemption reserve and any credit balance on its profit and loss account) less the aggregate
of any debt balance on its profit and loss account, and excluding amounts set aside for deferred taxation and any amounts attributable
to goodwill, patents, trade marks, trade names, deferred research and development costs, deferred marketing expenses and other intangible
assets.

 

“Taxes” means
all present and future taxes, levies, imposts, duties or charges of any nature whatsoever relating to any of the foregoing, and wheresoever
imposed, including value added tax or any similar tax and any franchise, transfer, sales, use, business, occupation, excise, personal
property, real property, stamp, gross income, fuel, leasing, occupational, turnover, excess profits, excise, gross receipts, franchise,
registration, licence, corporation, capital gains, export, import, customs income, levies, imposts, withholdings or other taxes or duties
of any nature whatsoever (or any other amount corresponding to any of the foregoing) now or hereafter imposed, levied, collected, withheld
or assessed by any national or regional taxing or fiscal authority or agency or other Government Entity, together with any penalties,
additions to tax, fines or interest thereon, and Tax and Taxation shall be construed accordingly.

 

“TotalCare Agreement”
has the meaning given to such term in Part B of Schedule 7.

 

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“TotalCare
Agreement Summary” means the summary of the coverage and term of the TotalCare agreement including the following
information:

 

		(a)	Customer’s name;

 

		(b)	Engine type;

 

		(c)	Engine serial numbers;

 

		(d)	Name, date and reference of the TotalCare Agreement;

 

		(e)	Period of Cover of the TotalCare Agreement;

 

		(f)	Definition of Qualified Event;

 

		(g)	TotalCare Services provided by the Engine Manufacturer
under the TotalCare Agreement; and

 

		(h)	Differences in the Lessee’s Engine Management
Plan from the generic Rolls-Royce Engine Management Plan.

 

“Total Loss” means:

 

		(a)	the actual, constructive, compromised, arranged or
total loss of the Aircraft agreed by insurers;

 

		(b)	if the Aircraft is destroyed, damaged beyond economic
repair or becomes permanently unfit for normal use for any reason (including any damage to the Aircraft or it being requisitioned for
use where the insurers agree a total loss settlement);

 

		(c)	if the Aircraft is requisitioned for title, confiscated,
seized, detained, forfeited, compulsorily purchased; or

 

		(d)	if the Aircraft is requisitioned for hire for more
than one hundred and eighty (180) days or is hi-jacked, stolen or disappears for sixty (60) days or longer.

 

“Total Loss Payment Date” means with
respect to a Total Loss the earlier of:

 

		(a)	the first Business Day which falls on or after the
date falling sixty (60) days after the Total Loss happened; and

 

		(b)	the date the Insurance proceeds are received by the
person entitled to such proceeds under this Agreement for that Total Loss.

 

“Tracked Part”
means each part that for its nature needs a specific control of usage expressed in calendar time and/or Cycles and/or Flight Hours, when
its individualization is feasible by means of its serial number identification provided by the OEM and as a minimum, shall include all
parts identified in the aircraft inspection report provided by the Airframe Manufacturer at Delivery. A list of tracked parts are to be
agreed between the Lessor and the Lessee no later than six (6) months prior to the Redelivery Date.

 

“Transaction Documents”
means this Agreement, the IDERA, the Airframe Warranties Agreement, the Engine Warranties Agreement, the Notice and Acknowledgement, the
Acceptance Certificate, the Aviation Authority Letter (if applicable), the Deregistration Power of Attorney, the Assignment of Insurances,
the Lessor Guarantee, any Subordination

 

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Agreement and any other document
which is entered into by the Lessee or any Permitted Sublessee in connection with any of those agreements, as each of the same may be
amended from time to time.

 

REDACTED

 

 

 

 

 

 

“Workscope Planning Guide” means the
Engine Manufacturer’s generic workscope planning guide in respect of the Engines.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Part
B 

Interpretation

 

The following rules of interpretation apply throughout the
Agreement.

 

		1.	Unless otherwise stated, a reference to:

 

		(a)	any Applicable Regulation includes any change or addition to it or replacement of it;

 

		(b)	“month” means a period starting
on one day in a calendar month and ending on the numerically corresponding day in the next calendar month, except that:

 

		(i)	if the numerically corresponding day is not a Business Day, that period shall end
on the next Business Day in that calendar month in which that period is to end if there is one, or if there is not, on the immediately
preceding Business Day; and

 

		(ii)	if there is no numerically corresponding day in the calendar month in which that
period is to end, that period shall end on the last Business Day in that calendar month.

 

The above rules will only apply to the last month of any
period;

 

		(c)	this Agreement or any other agreement or document
includes any changes, replacements or substitutions;

 

		(d)	indebtedness includes any obligation (whether
incurred as principal or surety) for the payment or repayment of money, whether present or future, actual or contingent;

 

		(e)	a person may, depending on the context, include
an individual, any form of corporate or business association or any state or form of governmental or official body, whether having a distinct
legal identity or not;

 

		(f)	the Lessor, the Lessee or any other person includes
their respective successors, transferees and assignees; and

 

		(g)	includes, including, include or
similar terms shall not be construed as limiting and shall mean “including, without limitation”.

 

		2.	The Clause headings and sub-headings are used in this Agreement only to make it easier to read. They
are not intended to affect its meaning.

 

		3.	Certain technical terms used but not defined have the meaning given in Annex six and eight of the Convention
of International Civil Aviation in force from time to time.

 

		4.	A Default or Event of Default is continuing if it has not been waived in writing by the Lessor or remedied.

 

		5.	Any reference to this Agreement includes its Schedules.

 

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Schedule 2

Aircraft
Particulars

 

	Manufacturer:	Boeing
	 	 
	Model:	787-9
	 	 
	Registration:	As specified in the Acceptance Certificate
	 	 
	Engine Model:	Trent 1000-J2
	 	 
	Engine Serial Numbers: 	As specified in the Acceptance Certificate
	 	 
	Engine Thrust Rating	78,000 lbs
	 	 
	APU Manufacturer:	Hamilton Standard
	 	 
	APU Model:	APS 5000A
	 	 
	APU Serial Number:	As specified in the Acceptance Certificate
	 	 
	Aircraft Specification:	As per Schedule 4Part A (Aircraft Specification)
	 	 
	MTOW:	250,837 kgs
	 	 
	MLW:	192,776 kgs
	 	 
	MZFW:	181,436 kgs
	 	 
	LOPA:	35W / 309Y
	 	 
	Noise Category:	ICAO Chapter 4
	 	 
	All Weather Operations:	Category III

 

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Schedule
3

Conditions Precedent and
Conditions Subsequent

 

Part A

Lessee Conditions Precedent

 

REDACTED

 

 

 

 

 

 

 

 

 

 

 

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REDACTED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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REDACTED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Part B

Lessor Conditions Precedent

 

REDACTED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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REDACTED

 

 

 

 

 

 

 

 

 

 

 

 

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Part C

 

Lessee Conditions Subsequent

 

	1.	Import

 

Evidence that any required
import licence, and all customs formalities, relating to the import of the Aircraft into the State of Registration and/or the
Habitual Base have been obtained or complied with to be provided to the Lessor within no more than forty-five (45) days after the
Delivery Date, including evidence of submission to the Chilean Customs Authority (Dirección General de Aduanas) of a
communication indicating the application of the temporary admissions regime to the Aircraft.

 

		2.	Aircraft documents

 

No later than sixty (60) days after
the Delivery Date, the Lessor shall receive each of the following:

 

		(a)	Standard Airworthiness Certificate issued by DGCA Chile in respect of the
Aircraft;

 

		(b)	Copy of the Registration of Ownership title and of this
Agreement in the Registro Nacional de Aeronaves of the Dirección General de Aeronáutica Civil; and

 

		(c)	Certificate of registration of the Aircraft issued
by the DGCA Chile evidencing the Lessee as operator and the Owner as owner of the Aircraft.

 

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Schedule
4

 

Part A

Aircraft Specification

 

Aircraft Manufacturer, Model and Series: Boeing 787-9

 

Aircraft Specification: Boeing 787-9

 

Manufacturer's Serial Number: 38891

 

The Aircraft shall conform to the above Aircraft Specification
and be equipped with all Parts installed thereon at the time of the delivery by the Manufacturer.

 

Engine Manufacturer and Model:
Rolls Royce Trent 1000 Engines

 

Serial Numbers: As set forth in the Acceptance Certificate

 

APU Serial Numbers: As set forth in the Acceptance Certificate

 

MTOW: 250,837 kgs

 

LOPA: 35W / 309Y

 

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Part B

Delivery Procedure

 

REDACTED

 

 

 

 

 

 

 

 

 

 

 

 

 

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Part C

Delivery Condition

 

REDACTED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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REDACTED

 

 

 

 

 

 

 

 

 

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REDACTED

 

 

 

 

 

 

 

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REDACTED

 

 

 

 

 

 

 

 

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REDACTED

 

 

 

 

 

 

 

 

 

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REDACTED

 

 

 

 

 

 

 

 

 

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REDACTED

 

 

 

 

 

 

 

		10.	Documentation

 

All Aircraft Documents and
other current and historical records delivered with the Aircraft on delivery from the Manufacturer, and all other Aircraft Documents
acquired or prepared by the Previous Operator shall be available with the Aircraft including, without limitation, (i)  time
logs showing Aircraft and Engine Flight Hours and Cycles on any given date, (ii) documents, (iii) manuals (revised up to and
including the most current revisions issued by the Manufacturer), (iv) data, (v) Overhaul records, (vi) time controlled Part
traceability to Overhaul and to "zero time since new" for time controlled Parts which have life limits as determined by
the Manufacturer or EASA and the FAA as applicable, (vii) log books, (viii) original Aircraft and Engine delivery documents, (ix)
EASA Form One (or any successor thereto) for all then currently installed Parts which have been replaced by the Previous Operator,
(x) EASA Form One for time controlled Parts then currently installed on the Aircraft and which have been Overhauled or installed,
(xi) FAA, EASA and/or other Aviation Authority forms (as applicable), (xii) records of modification accomplished with respect to the
Airframe, Engines, Landing Gear and APU, (xiii) Airframe and Engine inspection records (including NDT documentation such as x-ray,
eddy current, etc.), (xiv) burn test certification records, including without limitation, those required by EASA or FAA for seat
covers, cushions and carpeting (as applicable), and (xv) all other documentation in the possession of the Previous Operator,
pertaining to the Airframe, Engines and Parts. All discrepancies found in the Aircraft Documents shall be corrected, and any missing
Aircraft Documents shall be reconstructed by the Lessor at the Lessor’s sole cost and expense prior to the Delivery Date in
accordance with the following:

 

		A.	Certificates

 

		A001	Certificate of Airworthiness

 

		A002	Current Certificate of Registration

 

		A003	C of A for Export

 

		A004	Noise Limitation Certificate (AFM page)

 

		A005	Radio Station License

 

		A006	Aircraft deregistration confirmation (if applicable)

 

		A007	Burn Certificates - Cabin Interiors - as follows:

 

Certification of compliance with the fire blocking requirements
as outlined in FAR / JAR Part 25 including:

 

		●	Seat cushions*

 

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		●	Back rest cushions*

 

		●	Dress covers*

 

		●	Carpets and Curtains

 

		●	Flight Attendant Seats

 

		●	Cockpit Observer's Seats

 

		●	Galley Floor Covering

 

		●	Interior Surfaces (if refurbished)

 

		*	Including "in combination" burn certification

 

		*	Note: some of the above items may not be required based on Modifications
as specified in Clause 13.

 

		B.	Aircraft Maintenance Status Summaries

 

		B001	Certified current Time in Service (Flight Hours and Cycles)
and maintenance status

 

		B002	Certified status of Airframe and Appliance Airworthiness Directives
including method of compliance

 

		B003	Certified status of Service Bulletins Incorporated

 

		B004	Certified status of all non SB and Major Modifications/STC's
including acceptable State of Manufacture Certification

 

		B005	Certified status of SSI (SSI’s
included in structures program – LDND)

 

		B006	Certified status of CPCP (CPCP
included in structures program – LDND)

 

		B007	Certified inventory of Hard Time
Components (Fitted listing)

 

		B008	Certified inventory of OC/CM Components (Fitted listing)

 

		B009	Certified status of Check/Inspection History and Current Status
of Checks

 

		B010	List of Deferred Maintenance Items (if applicable)

 

		B011	List of Out of Phase Checks, Special Requirements, Time Limited
Repairs (if any)

 

		B012	Aircraft Accident and Incident Statement

 

		B013	Structural repairs and damage Status (including Dent and Buckle
Chart)

 

		B014	Certification Maintenance Requirements (CMR) item status

 

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		B015	Aircraft Flight Time Report / Aircraft Log Book

 

		C.	Aircraft Maintenance Records

 

		C001	Technical Logs

 

		C002	A Checks: Last complete cycle of A Checks (or equivalent)

 

		C003	C Checks: Last Complete cycle of C Checks (or equivalent)

 

		C004	All Major Checks (if applicable)

 

		C005	CPCP Tasks including DFP and finding reports (if applicable)

 

		C006	Dirty Finger Print Certification (DFP) - AD's - DFP must reference
AD and/or Applicable SB

 

		C007	Dirty Finger Print Certification - SB's

 

		C008	Dirty Finger Print Certification - STC Documentation and All
other modifications

 

		C009	Dirty Finger Print Certification All Structural repairs/structural
damage

 

		C010	Details of State of Manufacture approval basis - All non SRM
Structural repairs

 

		C011	Certification Maintenance Requirement (CMR) Dirty Finger Prints

 

		C012	Last Weighing Report including Schedule

 

		C013	Last Balancing of All Control Surfaces (if applicable)

 

		C014	Last Demonstration Flight Report

 

		C015	Certified ETOPS compliance report (if applicable)

 

		C016	Certified last done/ next due MPD task listing

 

		C017	NDT documentation such as x-ray and eddy current, etc.(if applicable)

 

		D.	Configuration Status

 

		D001	Approved and certified LOPA

 

		D002	Galley Drawings and Galley OHM

 

		D003	Emergency Equipment Drawing/Listing

 

		D004	Loose Equipment Inventory

 

		D005	Inventory Listing of Avionic Units installed

 

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		E.	Aircraft Historical Records

 

		E001	C of A (Export) from State of Manufacture

 

		E002	Manufacturer's AD Report

 

		E003	Manufacturer's Inspection Report, Initial Equipment list / Aircraft
Readiness Log (or equivalent)

 

		E004	Manufacturer's repair/alteration report

 

		E005	Manufacturer's SB Report (if applicable)

 

		E006	Aircraft Historical / Miscellaneous Log (or equivalent) (if
applicable)

 

		E007	Last Flight Data Recorder Read Out and Corrections (if applicable)

 

		F.	Engine Records

 

		F001	Certified Statement on Status of Each Engine

		 	 

		F002	Certified Status of Engine Airworthiness Directives including
Method of Compliance

		 	 

		F003	Manufacturer's Modifications and SB Status

		 	 

		F004	In house Modifications (if applicable)

		 	 

		F005	Certified LLP Listing

		 	 

		F006	Manufacturer Delivery Document

		 	 

		F007	Complete copies of all historical Engine/Module Shop Visit Reports
including complete dirty finger print work packages or mini packages

		 	 

		F008	LLP Status and Full and unbroken Traceability to birth

		 	 

		F009	Condition Monitoring Report (if available)

		 	 

		F010	Engine Log Book/Master Records of Installation/Removals

		 	 

		F011	Last Borescope Report, including video if available

		 	 

		F012	Test Cell Run Report

		 	 

		F013	Last On Wing Ground Run (if available)

		 	 

		F014	Engine Accident & Incident Statement

		 	 

		F015	Approved ETOPS compliance report (if applicable)

		 	 

		F016	Type of Engine Oil Used

 

    	 	 	Avolon LATAM B787 Lease –
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		F017	Statement of Exceedences and corrective actions per the maintenance
manual during Term

 

		F018	Power Rating Operation Statement (Cycles of operation e.g.,
B1, B2, C1, etc.)

 

		F019	Engine NDT documentation such as x-ray, eddy current, etc. (if
applicable)

 

		G.	APU

 

		G001	Certified Statement on Status of APU

 

		G002	Certified Status of APU Airworthiness Directives including Method
of Compliance

 

		G003	Manufacturer's Modifications and SB Status

 

		G004	APU Log Book/Master Record of Installation/Removals

 

		G005	Complete copies of all APU Shop Visit Reports & Reason for
Removal

 

		G006	Statement of APU Hours to Aircraft Flying Hours (ratio)

 

		G007	LLP Status and Full and unbroken Traceability to birth (if applicable)

 

		G008	Last On Wing/Health Check Data sheets (if applicable)

 

		G009	Last Test Cell Run

 

		G010	Approved ETOPS compliance report (if applicable) G011 Type of
APU Oil Used

 

		H.	Component Records

 

		H001	*Approved Release to Service Certification for Hard Time Components

 

		H002	*Approved Release to Service Certification for OC/CM Components

 

		I.	Landing Gears

 

		I001	*Approved Release to Service Certification for major assemblies
on each Landing Gear from last Overhaul

 

		I002	Approved LLP Listings for each Landing Gear such that total
life of each LLP can be appropriately demonstrated

 

		I003	Last Overhaul Mini Pack

 

		J.	Manuals

 

All Manufacturer's Manuals delivered with the Aircraft (if
applicable)

 

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Any manual required for continue airworthiness due to Modifications accomplished in accordance with STC’s (if
applicable).

 

Lessee shall gain its own access to electronic and/or
internet-based manuals and publications granted by the Manufacturer.

 

		K.	Miscellaneous

 

		K001	Maintenance Programme Specifications (Lessee’s)

 

		K002	Reference Material for Interpretation of Status Summaries, or
cross reference for Part Numbers

 

		*	Items H001, H002 and I001 to be covered by EASA Form 1 or FAA
Form 8130 3 with EASA dual release and all other documentation in the possession of the Lessor, relating to the Airframe, Engines or
any Parts.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	 	Avolon LATAM B787 Lease –
	 	– 122 –	Aircraft MSN 38891

     

    

 

Schedule 5

Form of Acceptance Certificate

 

This Acceptance Certificate relates
to the operating lease agreement (the “Agreement”) dated [   ] and made between Avolon Aerospace AOE 147 Limited (the
“Lessor”), and LATAM Airlines Group S.A. (the “Lessee”) in respect of the one (1) Boeing model 787-9
aircraft with manufacturer’s serial number 38891, registration mark [●] and having two (2) Trent 1000-J2 Engines with serial
numbers [●] and [●] installed thereon (as more particularly described in the Agreement as the Aircraft).

 

Unless otherwise defined in
this certificate, capitalised words and expressions used in this certificate shall have the same meanings as given to them in the Agreement.

 

		1.	The Aircraft has been delivered to us together with its Aircraft
Documents (as per the Aircraft Documents List signed by the Lessee and the Lessor and annexed to this Acceptance Certificate) on the
[**                 day of [**                 ] 20[**                ]. Delivery took place on that date at [[**                ] (state Delivery Location)], at [**                 ] hours.

 

		2.	We confirm that the Aircraft meets all of the requirements necessary
for us to accept Delivery of it and that the Lessor has fully performed all of its obligations under the Agreement with respect to that
Delivery. We acknowledge that the Aircraft has been delivered to us “as-is where-is”. We agree that Clause 22 of the Agreement
shall apply as if expressly set out herein.

 

		3.	The installed APU is a Hamilton Standard APS 5000A model APU
with Serial Number [●].

 

		4.	At Delivery the Aircraft had [**] fuel on board.

 

		5.	Other statistics evidencing the condition of the Aircraft at
Delivery (including Flight Hours and Cycles) are attached.

 

		6.	The Lessee confirms to the Lessor that, as at the time indicated
above, being the Delivery Date:

 

		(a)	the representations and warranties of the Lessee contained
in Clause 3 (Representations and Warranties) of the Agreement remain and are true;

 

		(b)	the Aircraft is insured as required by the Agreement; and

 

		(c)	the Aircraft is accepted for all purposes of the Agreement.

 

This Acceptance Certificate and
any non-contractual obligations arising from or in connection with it, are governed by and shall be construed in accordance with English
law.

 

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Signed:

 

Name (capitals):

 

Title:

 

duly authorised for and on behalf of

 

LATAM AIRLINES GROUP S.A.

 

We hereby acknowledge and accept the above

 

Signed:

 

Name (capitals):

 

Title:

 

duly authorised for and on behalf of

 

AVOLON AEROSPACE AOE 147 LIMITED

 

    	 	 	Avolon LATAM B787 Lease –
	 	– 124 –	Aircraft MSN 38891

     

    

  

Annex – Aircraft Documents

 

[TO BE INSERTED]

 

 

 

    	 	 	Avolon LATAM B787 Lease –
	 	– 125 –	Aircraft MSN 38891

     

    

 

Schedule 6

Form of Redelivery Acceptance
Certificate

 

This Redelivery Acceptance Certificate
relates to the operating lease agreement (the “Agreement”) dated [   ] 2021 and made between [●] (the “Lessor”),
and LATAM Airlines Group S.A. (the “Lessee”) in respect of the one (1) Boeing model 787-9 aircraft with manufacturer’s
serial number 38891, registration mark [●] and having two (2) Trent 1000-J2 Engines with serial numbers [●] and [●]
installed thereon (as more particularly described in the Agreement as the Aircraft).

 

Unless otherwise defined in this
certificate, capitalised words and expressions used in this certificate shall have the same meanings as given to them in the Agreement.

 

		1.	The Aircraft has been redelivered to us together with its Aircraft
Documents (as per the Aircraft Documents List signed by the Lessee and the Lessor and annexed to this Redelivery Acceptance Certificate)
on the [** day of [** ] 20[** ]. Redelivery took place on that date at [[** ] (state redelivery Location)], at [** ] hours.

 

		2.	We confirm that the Aircraft meets all of the requirements necessary
for us to accept Redelivery of it and that the Lessee has fully performed all of its obligations under the Agreement with respect to
that Redelivery. We acknowledge that the Aircraft has been redelivered to us “as-is where-is”. We agree that Clause 22 of
the Agreement shall apply as if expressly set out herein.

 

		3.	The installed APU is a Hamilton Standard APS 5000A model APU
with Serial Number [●].

 

		4.	At Redelivery the Aircraft had [** ] fuel on board.

 

		5.	Other statistics evidencing the condition of the Aircraft at
Redelivery (including Flight Hours and Cycles) are attached.

 

This Redelivery Acceptance Certificate
and any non-contractual obligations arising from or in connection with it, are governed by and shall be construed in accordance with English
law.

 

    	 	 	Avolon LATAM B787 Lease –
	 	– 126 –	Aircraft MSN 38891

     

    

 

Signed:

 

Name (capitals):

 

Title:

 

duly authorised for and on behalf of [●]

 

We hereby acknowledge and accept the above Signed:

 

Name (capitals):

 

Title:

 

duly authorised for and on behalf of

 

LATAM AIRLINES GROUP S.A.

 

    	 	 	Avolon LATAM B787 Lease –
	 	– 127 –	Aircraft MSN 38891

     

    

 

Annex – Aircraft Documents

 

[TO BE INSERTED]

 

 

 

 

 

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	 	– 128 –	Aircraft MSN 38891

     

    

 

Schedule 7

Payments

 

REDACTED

 

 

 

 

 

 

 

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REDACTED

 

 

 

 

 

 

 

 

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REDACTED

 

 

 

 

 

 

 

 

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REDACTED

 

 

 

 

 

 

 

 

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	 	– 132 –	Aircraft MSN 38891

     

    

 

REDACTED

 

 

 

 

 

 

 

 

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REDACTED

 

 

 

 

 

 

 

 

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REDACTED

 

 

 

 

 

 

 

 

 

 

 

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	 	– 135 –	Aircraft MSN 38891

     

    

 

REDACTED

 

 

 

 

 

 

 

 

 

 

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REDACTED

 

 

 

 

 

 

 

 

 

 

 

 

    	 	 	Avolon LATAM B787 Lease –
	 	– 137 –	Aircraft MSN 38891

     

    

 

Schedule
8

Reporting & Notices

 

Part A

Form of Technical Report

 

 

    	 	 	Avolon LATAM B787 Lease –
	 	– 138 –	Aircraft MSN 38891

     

    

 

Part
B

Notices

 

Lessee

 

LATAM Airlines Group S.A.

 

		Address:	Avenida Américo
Vespucio N° 901 Edificio Corporativo LATAM 1-A Renca 

Santiago

 Chile

 

		Email:	operating.lease@latam.com

with a copy to: audy.schenkl@latam.com

		Attention:	VP Fleet & Engine Contracts

 

Lessor

 

Avolon Aerospace AOE 147 Limited

 

		Address:	Number One Ballsbridge

Shelbourne Road

Ballsbridge

Dublin 4

Ireland

 

		Fax:	+353 1 485 3242

		Email:	notices@avolon.aero

		Attention:	Chief Operating Officer

 

Servicer

 

Avolon Aerospace Leasing Limited

 

		Address:	Number One

Ballsbridge

Building 1

Shelbourne Road

Ballsbridge

Dublin 4

Ireland.

 

		Fax:	+353 1 485 3242

		Email:	notices@avolon.aero

		Attention:	Chief Operating Officer

 

    	 	 	Avolon LATAM B787 Lease –
	 	– 139 –	Aircraft MSN 38891

     

    

 

Schedule 9

Insurance Requirements

 

		1.	Scope of cover

 

		1.1	The Lessee will at its own cost
maintain the following concerning the Aircraft:

 

		(a)	Hull and Spares All Risks Insurance
(which may be contained in separate policies) which will cover the Aircraft for not less than the Agreed Value and Engines and Parts
for their replacement cost, against all risks of loss or damage sustained (i) by the Aircraft or (ii) by Engines or Parts.

 

		(b)	Hull, Spares, War and Allied
Perils Insurance which will cover the Aircraft for not less than the Agreed Value and Engines and Parts for their replacement cost against
all of those risks currently enumerated in Lloyds Endorsement AVN 48B (War, Hi-jacking and Other Perils Exclusion Clause (Aviation)
other than paragraph (b) of that Form) or equivalent.

 

		(c)	Airline Liability Insurance
for a combined single limit of liability of not less than one billion Dollars REDACTED operations in the passenger configuration,
for any one accident or series of accidents for each aircraft arising out of any one occurrence and in the annual aggregate, which will
include (but may not be limited to) aircraft third party (bodily injury/property damage), passenger (including passengers’ checked
and unchecked baggage and personal effects), cargo and mail legal liability and general third party liability insurance including products,
hangar keepers’ and premises liability. This policy shall include the AVN 52E Extended Coverage Endorsement Aviation Liabilities
and additional coverage in respect of War and Allied Perils Third Party Baggage Cargo Legal Liabilities of not less than one billion
Dollars ($1,000,000,000) any one occurrence, each aircraft and in the annual aggregate. For so long as the Aircraft is registered in
Brazil, war risks liability cover may be provided by way of a government indemnity from the government of Brazil.

 

		2.	Additional Terms of Hull and Spares & War Risks Insurances

 

		2.1	The Lessee will ensure that each
Insurance policy taken out as specified in paragraphs 1.1(a) and 1.1(b):

 

		(a)	includes the Lessor, the Owner
and each of the Financiers as additional insured;

 

		(b)	provides in the form of section
1 of AVN67B that any payment in respect of a Total Loss will be paid to or to the order of the Contract Party(ies) in accordance with paragraph 6(a) below, and any other loss
will be settled in accordance with paragraphs 6(b) and 6(c) below; and

 

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	 	– 140 –	Aircraft MSN 38891

     

    

 

		(c)	provides in the form of AVS
103 or equivalent that the underwriters subscribing to each relevant insurance policy agree to a 50/50 claims funding arrangement in
the event of any dispute as to which insurance is applicable.

 

		2.2	The Lessee will ensure that each
Insurance policy taken out as specified in paragraph 1(a) will provide that:

 

		(a)	any deductibles will be no
greater than the following:

 

REDACTED

 

		(b)	the insurers have no right
to replace the Aircraft on a Total Loss (arranged, constructive or otherwise).

 

		(c)	the insurers confirm that under
Clause 17 (Insurance) and this Schedule, if the insured has installed an engine owned by a third party on the Aircraft either
(a) the Hull Insurance will automatically increase to such higher amount as is necessary in order to satisfy both the Lessor’s
requirement to receive the Agreed Value in the event of a Total Loss and the amount required by the third party engine owner; or (b)
separate additional insurance on such engine will attach in order to satisfy separately the requirement of the insured to such third
party owner.

 

		(d)	if at any time the data recognition
clause of AVN2000 or any equivalent clause is endorsed on the policies of insurance, the Lessee shall, at its own cost and expense, ensure
that the write-back clauses of AVN2001 and AVN 2002 are endorsed on the insurances.

 

		3.	Additional terms of liability insurance

 

The Lessee will ensure in respect of each liability Insurance
policy that it:

 

		(a)	contains a provision insuring
(to the extent of the risks covered by the policy) the indemnity provisions of this Agreement, if available in the relevant market;

 

		(b)	includes each Indemnitee as
an additional insured for their respective rights and interests warranted, each as to itself only, no operational interest;

 

		(c)	does not provide for any deductible
other than in respect of cargo and baggage;

 

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		(d)	contains a provision that the
Insurance policy be primary and without any right of contribution from any other insurance which may be available to the Lessor or any
Financier; and

 

		(e)	contains a severability of
interests clause which provides that the Insurance, except for the limit of liability, will operate to give each assured the same protection
as if there was a separate policy issued to each insured.

 

		4.	Terms common to all Insurance

 

The Lessee will ensure that each Insurance policy:

 

		(a)	is in accordance with standard
international insurance industry practice and covers at least such risks as are customarily insured against in the airline industry;

 

		(b)	provides cover denominated
in Dollars;

 

		(c)	provides for worldwide coverage,
subject only to such exceptions as the Lessor and the Security Trustee may agree (acting reasonably);

 

		(d)	incorporates the provisions
of Lloyds Endorsement AVN67B or equivalent provisions reasonably satisfactory to the Lessor and the Security Trustee;

 

		(e)	provides that, in relation
to the interests of each of the additional insureds, the Insurances will not be invalidated by any act or omission by the Lessee, or
any other person other than the respective additional insureds seeking protection and shall insure the interests of each of the additional
insureds regardless of any breach or violation by the Lessee, or any other person other than the respective additional insureds seeking
protection of any warranty, declaration or condition, contained in such Insurances provided that such additional insured so protected
has not caused, contributed or knowingly condoned the act or omission;

 

		(f)	provides that the insurers
will hold harmless and waive any rights of recourse against the additional assureds or to be subrogated to any rights of the Lessor of
the Lessee;

 

		(g)	provides that the additional
insureds will have no obligation or responsibility for the payment of any premiums due (but reserve the right to pay the same should
any of them elect so to do) and that the insurers will not exercise any right of set-off or counter-claim in respect of any premium due
against the respective interests of the additional insureds other than outstanding premiums relating to the Aircraft, any Engine or Part
the subject of the relevant claim; and

 

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	 	– 142 –	Aircraft MSN 38891

     

    

 

		(h)	provides
                                            that the Insurances will continue unaltered for the benefit of the additional insureds for
                                            at least thirty (30) days after written notice by registered mail or fax of any cancellation,
                                            change, event of non-payment of premium or instalment thereof has been issued by insurers,
                                            except in the case of war risks for which seven (7) days (or such lesser period as is or
                                            may be customarily available in respect of war risks or allied perils) will be given, or
                                            in the case of war between the five great powers or nuclear peril for which termination is
                                            automatic.

 

		5.	Reinsurance

 

The
Lessor may require that the original insurers maintain not less than one hundred per cent (100%) reinsurance (or such other amount no
greater than the maximum amount permitted under Applicable Regulations at the relevant time) for so long as the original Insurance is
required to be in force under this Agreement. Such reinsurance will be placed with approved underwriters through the Insurance Broker
and will be:

 

		(a)	be
                                            on the same terms as the original Insurance;

 

		(b)	contain
                                            a “cut-through” Clause providing that, in the event of a claim arising under
                                            the reinsurance, the reinsurer shall (in lieu of payment to the original insurer) pay to
                                            the relevant Indemnitee that portion of any claim which the reinsurer would otherwise be
                                            liable to pay to the original insurer; and

 

		(c)	provide
                                            for payment to be made notwithstanding:

 

		(i)	any
                                            bankruptcy, insolvency, liquidation or dissolution of any of the original insurers; and/or

 

		(ii)	that
                                            the original insurers have made no payment under the original Insurance policies.

 

		6.	Application
                                            of insurance proceeds

 

The
following are the directions of the Indemnitees for the application of any proceeds of the Insurance:

 

		(a)	in
                                            respect of a Total Loss, all recoveries under the Insurance will be paid to the Loss Payee
                                            without any deduction whatsoever;

 

		(b)	insurance
                                            proceeds for damage or loss (not amounting to a Total Loss) exceeding the Partial Loss Threshold:
                                            all insurance proceeds of any property, damage or loss to the Aircraft, any Engine or any
                                            Part occurring during the Lease Period not constituting a Total Loss and in excess of the
                                            Partial Loss Threshold will be:

 

		(i)	subject
                                            to no Event of Default having occurred and is then continuing, paid directly from the insurer
                                            to the Lessee for repairs completed or replacement property purchased upon (x) the Lessor
                                            being satisfied (acting reasonably) that the repairs or replacements have been effected in
                                            accordance with this Agreement, and (y) the receipt by the insurers of the Lessor’s
                                            prior written approval for the release of such proceeds; or

 

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		(ii)	if
                                            an Event of Default has occurred and is then continuing, paid to the Loss Payee and applied
                                            in payment (to reimburse the Lessee for any payment so made) for repairs or replacement property
                                            upon the Lessor being satisfied (acting reasonably) that the repairs or replacement have
                                            been effected in accordance with this Agreement;

 

		(c)	insurance
                                            proceeds for damage or loss (not amounting to a Total Loss) equal to or less than the Partial
                                            Loss Threshold: insurance proceeds in amounts equal to or less than the Partial Loss Threshold
                                            may be paid by the insurer directly to the Lessee;

 

		(d)	Liability
                                            Proceeds: all insurance proceeds in respect of third party liability will, except to the
                                            extent paid by the insurers to the relevant third party, be paid to the Loss Payee to be
                                            paid directly in satisfaction of the relevant liability or to the Lessee in reimbursement
                                            of any payment so made; and

 

		(e)	Event
                                            of Default: notwithstanding the foregoing paragraphs, if at the time of the payment of any
                                            such insurance proceeds an Event of Default has occurred and is continuing, all such proceeds
                                            (other than the proceeds of any third party liability Insurances) will be paid to or retained
                                            by the Loss Payee to be applied toward payment of any amounts which may be or become payable
                                            by the Lessee in such order as the Loss Payee may elect.

 

To
the extent that insurance proceeds are paid to the Lessee, the Lessee agrees to comply with the foregoing provisions and apply or pay
over such proceeds as so required.

 

		7.	Contract
                                            parties and documents

 

The
Lessee will ensure that for the purposes of Lloyds Endorsement AVN 67B:

 

		(a)	this
                                            Agreement and such other of the Transaction Documents and/or the Financing Documents as the
                                            Lessor, acting reasonably, requires are identified as “contracts”; and

 

		(b)	the
                                            Lessor, the Owner and each of the Financiers are named as the “contract parties”.

 

		8.	AVN67B

 

Notwithstanding
the provisions of this Schedule 9, for so long as Airline Finance/Lease Contract Endorsement AVN67B is in effect and it remains the general
aviation insurance market practice to insure equipment financed or leased on the basis of such endorsement, the Lessee may maintain insurances
in respect of the Aircraft for the purposes of this Agreement which incorporate the terms and conditions of AVN67B. To the extent any
provision of AVN67B conflicts or is otherwise inconsistent with the requirements of this Schedule 9, then such AVN67B endorsement will
prevail. An insurance certificate in the form of AVN67B will be deemed to satisfy the requirements of this Schedule 9.

 

    	 	 	Avolon LATAM B787 Lease –
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Schedule
10

Redelivery

 

REDACTED

 

 

 

 

 

 

 

 

 

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REDACTED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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	 	– 146 –	Aircraft MSN 38891

     

    

 

REDACTED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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	 	– 147 –	Aircraft MSN 38891

     

    

 

REDACTED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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	 	– 148 –	Aircraft MSN 38891

     

    

 

REDACTED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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	 	– 149 –	Aircraft MSN 38891

     

    

 

REDACTED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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	 	– 150 –	Aircraft MSN 38891

     

    

 

REDACTED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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REDACTED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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REDACTED

 

 

 

 

 

 

 

		6.	Documents

 

All
Aircraft Documents and other current and historical records delivered with the Aircraft on the Delivery Date, and all other Aircraft
Documents acquired or prepared by the Lessee during the Lease Period shall be returned with the Aircraft including, without limitation,
(i) time logs showing Aircraft and Engine Flight Hours and Cycles on any given date, (ii) documents, (iii) manuals (revised up to and
including the most current revisions issued by the Manufacturer), (iv) data,(v) Overhaul records, (vi) time controlled Part traceability
to Overhaul and to “zero time since new” for time controlled Parts which have life limits as determined by the Manufacturer
or EASA and the FAA as applicable, (vii) log books, (viii) original Aircraft and Engine delivery documents, (ix) EASA Form One and the
FAA 8130- 3 as applicable (or any successor thereto) for all then currently installed Parts which have been replaced by the Lessee, (x)
EASA Form One and the FAA 813-3 as applicable for time controlled Parts then currently installed on the Aircraft and which have been
Overhauled or installed, (xi) FAA, EASA and/or other Aviation Authority forms (as applicable), (xii) records of modification accomplished
with respect to the Airframe, Engines, Landing Gear and APU, (xiii) Airframe and Engine inspection records (including NDT documentation
such as x-ray, eddy current, etc.), (xiv) burn test certification records, including without limitation, those required by EASA or FAA
for seat covers, cushions and carpeting (as applicable), and (xv) all other documentation in the possession of the Lessee, pertaining
to the Airframe, Engines and Parts. Any discrepancies found in the Aircraft Documents shall be corrected, and any missing Aircraft Documents
shall be reconstructed by the Lessee at the Lessee’s sole cost and expense prior to Redelivery in accordance with the following:

 

		A.	Certificates

 

A001
Certificate of Airworthiness

 

A002
Current Certificate of Registration

 

A003
C of A for Export

 

A004
Noise Limitation Certificate (AFM page)

 

A005
Radio Station License

 

A006
Aircraft deregistration confirmation

 

A007
Burn Certificates - Cabin Interiors - as follows:

 

Certification
of compliance with the fire blocking requirements as outlined in FAR / JAR Part 25including:

 

		●	Seat
                                            cushions*

 

		●	Back
                                            rest cushions*

 

		●	Dress
                                            covers*

 

		●	Carpets
                                            and Curtains

 

		●	Flight
                                            Attendant Seats

 

		●	Cockpit
                                            Observer’s Seats

 

		●	Galley
                                            Floor Covering

 

		●	Interior
                                            Surfaces (if refurbished)

 

		*	Including
                                            “in combination” burn certification

 

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		B.	Aircraft
                                            Maintenance Status Summaries

 

B001
Certified current Time in Service (Flight Hours and Cycles) and maintenance status

 

B002
Certified status of Airframe and Appliance Airworthiness Directives including method of compliance

 

B003
Certified status of Service Bulletins Incorporated

 

B004
Certified status of all non SB and Major Modifications/STC’s including acceptable State of Manufacture Certification

 

B005
Certified status of SSI

 

B006
Certified status of CPCP (if applicable)

 

B007
Certified inventory of Hard Time Components (Fitted listing)

 

B008
Certified inventory of OC/CM Components (Fitted listing)

 

B009
Certified status of Check/Inspection History and Current Status of Checks

 

B010
List of Deferred Maintenance Items (if applicable)

 

B011
List of Out of Phase Checks, Special Requirements, Time Limited Repairs (if any)

 

B012
Aircraft Accident and Incident Statement

 

B013
Structural repairs and damage Status (including Dent and Buckle Chart) B014 Certification Maintenance Requirements (CMR) item status

 

B015
Aircraft Flight Time Report / Aircraft Log Book

 

		C.	Aircraft
                                            Maintenance Records

 

C001
Technical Logs

 

C002
A Checks: Last complete cycle of A Checks (or equivalent)

 

C003
C Checks: Last Complete cycle of C Checks (or equivalent)

 

C004
All Major Checks

 

C005
CPCP Tasks including DFP and finding reports

 

    	 	 	Avolon LATAM B787 Lease –
	 	– 154 –	Aircraft MSN 38891

     

    

 

C006
Dirty Finger Print Certification (DFP) - AD’s - DFP must reference AD and/or ApplicableSB

 

C007
Dirty Finger Print Certification - SB’s

 

C008
Dirty Finger Print Certification - STC Documentation and All other modifications

 

C009
Dirty Finger Print Certification All Structural repairs/structural damage

 

C010
Details of State of Manufacture approval basis - All non SRM Structural repairs

 

C011
Certification Maintenance Requirement (CMR) Dirty Finger Prints

 

C012
Last Weighing Report including Schedule

 

C013
Last Balancing of All Control Surfaces (if applicable)

 

C014
Last Demonstration Flight Report

 

C015
Certified ETOPS compliance report (if applicable)

 

C016
Certified last done/ next due MPD task listing

 

C017
NDT documentation such as x-ray and eddy current, etc.

 

		D.	Configuration
                                            Status

 

D001
Approved and certified LOPA

 

D002
Galley Drawings and Galley

 

D003
Emergency Equipment Drawing/Listing

 

D004
Loose Equipment Inventory

 

D005
Inventory Listing of Avionic Units installed

 

		E.	Aircraft
                                            Historical Records

 

E001
C of A (Export) from State of Manufacture

 

E002
Manufacturer’s AD Report

 

E003
Manufacturer’s Inspection Report, Initial Equipment list / Aircraft Readiness Log (orequivalent)

 

    	 	 	Avolon LATAM B787 Lease –
	 	– 155 –	Aircraft MSN 38891

     

    

 

E004
Manufacturer’s repair/alteration report

 

E005
Manufacturer’s SB Report

 

E006
Aircraft Historical / Miscellaneous Log (or equivalent)

 

E007
Last Flight Data Recorder Read Out and Corrections

 

		F.	Engine
                                            Records

 

F001
Certified Statement on Status of Each Engine

 

F002
Certified Status of Engine Airworthiness Directives including Method of Compliance

 

F003
Manufacturer’s Modifications and SB Status

 

F004
In house Modifications (if applicable)

  

F005
Certified LLP Listing

 

F006
Manufacturer Delivery Document

 

F007
Complete copies of all historical Engine/Module Shop Visit Reports including completedirty finger print work packages

 

F008
LLP Status and Full and unbroken Traceability to birth

 

F009
Condition Monitoring Report

 

F010
Engine Log Book/Master Records of Installation/Removals

 

F011
Last Borescope Report, including video if available

 

F012
Test Cell Run Report

 

F013
Last On Wing Ground Run

 

F014
Engine Accident & Incident Statement

 

F015
Approved ETOPS compliance report (if applicable)F016 Type of Engine Oil Used

 

F017
Statement of Exceedences and corrective actions per the maintenance manual during Term

 

    	 	 	Avolon LATAM B787 Lease –
	 	– 156 –	Aircraft MSN 38891

     

    

 

F018
Power Rating Operation Statement (Cycles of operation e.g., B1, B2, C1, etc.)

 

F019
Engine NDT documentation such as x-ray, eddy current, etc.

 

		G.	APU

 

G001
Certified Statement on Status of APU

 

G002
Certified Status of APU Airworthiness Directives including Method of Compliance

 

G003
Manufacturer’s Modifications and SB Status

 

G004
APU Log Book/Master Record of Installation/Removals

 

G005
Complete copies of all APU Shop Visit Reports & Reason for Removal G006 Statement of APU Hours to Aircraft Flying Hours (ratio)

 

G007
LLP Status and Full and unbroken Traceability to birth (if applicable) G008 Last On Wing/Health Check Data sheets (if applicable)

 

G009
Last Test Cell Run

 

G010
Approved ETOPS compliance report (if applicable) G011 Type of APU Oil Used

 

		H.	Component
                                            Records

 

H001
*Approved Release to Service Certification for Hard Time Components including 8130 / Form 1 or equivalent certification

 

H002
*Approved Release to Service Certification for OC/CM Components including 8130 / Form 1 or equivalent certification

 

    	 	 	Avolon LATAM B787 Lease –
	 	– 157 –	Aircraft MSN 38891

     

    

 

		I.	Landing
                                            Gears

 

I001
*Approved Release to Service Certification (including 8130 / Form 1 or equivalent certification) for major assemblies on each Landing
Gear from last Overhaul

 

I002
Approved LLP Listings for each Landing Gear such that total life of each LLP can be appropriately demonstrated

 

I003
Last Overhaul Mini Pack

 

		J.	Manuals

 

All
Manufacturer’s Manuals delivered with the Aircraft under this Agreement updated to the latest revision standard (applicable as
at the Expiry Date) as may be reasonably requested by the Lessor.

 

CD:

 

J001
Wiring Diagram Manual

 

J002
Illustrated Parts Catalog

 

J003
Maintenance Manual

 

J004
Aircraft Schematics manual

 

J005
Wire List and Hook up Charts

 

		K.	Miscellaneous

 

K001
Maintenance Programme Specifications (Lessee’s)

 

K002
Reference Material for Interpretation of Status Summaries, or cross reference for Part Numbers

 

		*	Items
                                            H001, H002 and I001 to be covered by EASA Form 1 or FAA Form 8130 3 with EASA dual release
                                            and all other documentation in the possession of the Lessee, relatingto the Airframe, Engines
                                            or any Parts.

 

    	 	 	Avolon LATAM B787 Lease –
	 	– 158 –	Aircraft MSN 38891

     

    

 

Schedule
11

Subleasing
Requirements

 

REDACTED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	 	Avolon LATAM B787 Lease –
	 	– 159 –	Aircraft MSN 38891

     

    

 

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	 	– 160 –	Aircraft MSN 38891

     

    

 

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	 	– 161 –	Aircraft MSN 38891

     

    

 

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	 	– 162 –	Aircraft MSN 38891

     

    

 

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	 	– 163 –	Aircraft MSN 38891

     

    

 

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	 	– 164 –	Aircraft MSN 38891

     

    

 

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	 	– 165 –	Aircraft MSN 38891

     

    

 

Schedule
12

 

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	 	– 166 –	Aircraft MSN 38891

     

    

 

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	 	– 167 –	Aircraft MSN 38891

     

    

 

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	 	– 168 –	Aircraft MSN 38891

     

    

 

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	 	– 169 –	Aircraft MSN 38891

     

    

 

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	 	– 170 –	Aircraft MSN 38891

     

    

 

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	 	– 171 –	Aircraft MSN 38891

     

    

 

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	 	– 172 –	Aircraft MSN 38891

     

    

 

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    	 	 	Avolon LATAM B787 Lease –
	 	– 173 –	Aircraft MSN 38891

     

    

 

EXECUTION
PAGE

LEASE AGREEMENT - MSN 38891

 

	SIGNED by	)	 
	duly authorised for and 	)	 
	on behalf of	)	/s/ Kate Ruddy
	AVOLON AEROSPACE	)	Kate Ruddy
	AOE 147 LIMITED	)	Authorised Signatory
	 	 	 
	SIGNED by	)	 
	duly authorised for and	)	 
	on behalf of	)	 
	LATAM AIRLINES GROUP S.A.	)	 

 

    	 	 	Avolon LATAM B787 Lease –
	 	– 174 –	Aircraft MSN 38891

     

    

 

EXECUTION
PAGE

LEASE
AGREEMENT - MSN 38891

 

	SIGNED by	)	 
	duly authorised for and 	)	 
	on behalf of	)	 
	AVOLON AEROSPACE	)	 
	AOE 147 LIMITED	)	 
	 	 	 
	SIGNED by	)	/s/ Sebastian
    Acuto
	duly authorised for and	)	Sebastian Acuto
	on behalf of	)	Authorised Signatory
	LATAM AIRLINES GROUP S.A.	)	 

 

	 	 	Avolon
                                            LATAM B787 Lease –
	 	–
175 –	Aircraft
                                            MSN 38891Exhibit
4.31

 

Execution Version

 

	 	Dated 	 2021	 

 

 

 

 

 

UMB BANK, N.A., not in
its individual capacity but solely

in its capacity as owner trustee of the MSN 38459 Trust

 

as Lessor

 

and

 

LATAM AIRLINES GROUP S.A.

 

as Lessee

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING LEASE AGREEMENT

ONE (1) BOEING 787-9 AIRCRAFT WITH

MANUFACTURER SERIAL NUMBER 38459

 

 

 

 

     

     

    

 

	1	Definitions and Interpretation	3
	 	 	 
	2	Agreement to Lease	3
	 	 	 
	3	Representations and Warranties	3
	 	 	 
	4	Conditions	7
	 	 	 
	5	Delivery and Acceptance	8
	 	 	 
	6	Payments	9
	 	 	 
	7	Absolute and Unconditional Obligations	11
	 	 	 
	8	Lessor’s Obligations	12
	 	 	 
	9	Information	13
	 	 	 
	10	Control of the Aircraft	14
	 	 	 
	11	Engines and Parts	17
	 	 	 
	12	Registration, Certification and Filings	21
	 	 	 
	13	Title Protection and Operation	24
	 	 	 
	14	Technical	27
	 	 	 
	15	Indemnities	33
	 	 	 
	16	Total Loss	38
	 	 	 
	17	Requisition	40
	 	 	 
	18	Insurance	41
	 	 	 
	19	Return of the Aircraft	44
	 	 	 
	20	Events of Default	46
	 	 	 
	21	Remedies	   
	 	 	 
	22	Illegality	54
	 	 	 
	23	Termination Due to Chapter 11 Cases	56
	 	 	 
	24	Disclaimer	58
	 	 	 
	25	Assignment and Transfer	59
	 	 	 
	26	Miscellaneous	62
	 	 	 
	27	Law	65
	 	 	 
	28	Confidentiality	67
	 	 	 
	29	Third Party Rights	68

 

    1

     

    

 

	Schedule 1 Definitions and Interpretation Part A Definitions	69
	 	 
	Part B Interpretation	92
	 	 
	Schedule 2 Aircraft Particulars	93
	 	 
	Schedule 3 Conditions Precedent and Conditions Subsequent Part A Lessee Conditions Precedent	94
	 	 
	Part B Lessor Conditions Precedent	  
	 	 
	Part C Lessee Conditions Subsequent	101
	 	 
	Schedule 4 Delivery Procedure	102
	 	 
	Schedule 5 Aircraft Documents	105
	 	 
	Schedule 6 End of Lease Maintenance Payment Adjustments	110
	 	 
	Schedule 7 Reporting and Notices Part A Form of Technical Report	114
	 	 
	Part B Notices	115
	 	 
	Schedule 8 Insurance Requirements	116
	 	 
	Schedule 9 Part A – Redelivery Procedure	122
	 	 
	Part B Redelivery Condition	124
	 	 
	Schedule 10 Subleasing Requirements	131
	 	 
	Schedule 11 Form of Technical Acceptance Certificate	136
	 	 
	Annex 1 Aircraft Documents	142
	 	 
	Annex 2 Loose Equipment	143
	 	 
	Annex 3 L.O.P.A	144
	 	 
	Schedule 12 Form of Final Acceptance Certificate	145
	 	 
	Annex 1 Aircraft Documents	150
	 	 
	Annex 2 Loose Equipment	151
	 	 
	Annex 3 L.O.P.A	152
	 	 
	Schedule 13 Form of Redelivery Acceptance Certificate	153
	 	 
	Annex 1 Aircraft Documents	159
	 	 
	Annex 2 Loose Equipment	160
	 	 
	Annex 3 L.O.P.A	161
	 	 
	Schedule 14 Form of Condition Confirmation Certificate	162

 

    2

     

    

 

	This OPERATING LEASE AGREEMENT (this
  Agreement) is dated 	2021

 

BETWEEN:

 

	(1)	UMB BANK, N.A., a national banking association organised and existing under
the federal laws of the United States of America whose office is located at 6440 S. Millrock Drive, Suite 400, Salt Lake City, UT 84121,
U.S.A., not in its individual capacity but solely in its capacity as owner trustee of the MSN 38459 Trust (the Lessor); and

 

	(2)	LATAM AIRLINES GROUP S.A., a sociedad anónima incorporated
under the laws of Chile whose registered office is located at Edificio Huidobro, Avenida Presidente Riesco 5711, 19th Floor Las Condes,
Santiago, Chile (the Lessee).

 

IT IS AGREED as follows:

 

	1	Definitions and Interpretation

 

In this Agreement capitalised
words and expressions have the meanings set out in Part A of Schedule 1 (Definitions). The rules of interpretation and construction
set out in Part B of Schedule 1 (Interpretation) shall apply to this Agreement.

 

	2	Agreement to Lease

 

Subject to the terms of this
Agreement, the Lessor agrees to lease the Aircraft to the Lessee and the Lessee agrees to take the Aircraft on lease for the Lease Period.

 

	3	Representations and Warranties

 

Representations and warranties

 

	3.1	Each Party represents and warrants to the other that:

 

		(a)	in the case of UMB Bank, N.A., it has been properly formed as a national banking
association under the federal laws of the United States of America and is acting as the trustee of the MSN 38459 Trust and in the case
of the Lessee, it has been properly formed as a sociedad anónima with limited liability under the laws of Chile;

 

		(b)	all necessary corporate actions have been taken and all authorisations have been
obtained for the execution by it of each Transaction Document to which it is a party and the performance of its obligations thereunder,
it has the power to enter into the Transaction Documents to which it is a party and each of the Transaction Documents to which it is a
party has been duly executed and delivered by it;

 

    3

     

    

 

		(c)	it is subject to civil commercial law with respect to its obligations under the
Transaction Documents to which it is a party, neither it nor any of its assets is entitled to any right of immunity and the entry into
and performance by it of the Transaction Documents to which it is a party constitute private and commercial acts;

 

		(d)	the choice of English or New York law (as the case may be) to govern the Transaction
Documents to which it is a party and the submission by that Party to the jurisdiction of the English or New York courts (as the case may
be) is valid and binding on that Party;

 

		(e)	its obligations under each Transaction Document to which it is a party are, or
if any Transaction Document to which it is a party is entered into after the date of this Agreement will be, from the date of execution
of such Transaction Document to which it is a party, legal, valid and binding obligations and enforceable against it in accordance with
their respective terms (except as enforceability may be limited by (i) applicable bankruptcy, insolvency, examination, reorganisation
or similar laws, and (ii) general principles of equity); and

 

		(f)	The entry into and performance by it of, and the transactions contemplated by,
this Agreement and each other Transaction Document to which it is a party do not and will not conflict with:

 

		(i)	any Applicable Law applicable to it;

 

		(ii)	its constitutional documents; or

 

		(iii)	any agreement or instrument binding upon it or any of its assets.

 

Lessee’s representations and warranties

 

	3.2	The Lessee further represents and warrants to the Lessor
that:

 

		(a)	other than the Chapter 11 Events, no Default has occurred and is continuing or
would occur as a result of Delivery;

 

		(b)	other than the Chapter 11 Proceedings, it is not involved in any litigation or
other dispute nor is there any claim pending against it, the outcome of which would, if determined against the Lessee, reasonably be expected
to adversely affect its financial condition in any material respect or its ability to perform its material obligations under this Agreement
or any other Transaction Document to which it is a party;

 

		(c)	the Original Financial Statements, as published on www.latamairlinesgroup.net:

 

		(i)	have been prepared in accordance with IFRS;

 

    4

     

    

 

		(ii)	fairly represent the financial condition of the Lessee as at the date to which
they were drawn up; and

 

		(iii)	do not contain any untrue statement or omit to state a material fact which could
make them materially misleading;

 

		(d)	since the preparation of the accounts referred to in Clause 3.2(c) above, there
has been no material adverse change in the Lessee’s financial condition in any material respect, other than the Chapter 11 Events;

 

		(e)	neither the Lessee nor, to the Lessee’s knowledge, any directors or officers
of the Lessee or any Affiliate of the Lessee:

 

		(i)	is a Prohibited Person;

 

		(ii)	is owned or controlled by, or acting directly or indirectly on behalf of or for
the benefit of, a Prohibited Person;

 

		(iii)	owns or controls a Prohibited Person; or

 

		(iv)	is in breach of the US sanctions administered by OFAC, any other US Government
sanctions, export or procurement laws or any other sanctions or other such restrictions on business dealing imposed by the European Union
or Chile;

 

		(f)	neither the Lessee nor, to the Lessee’s knowledge, any director, officer
or employee of the Lessee or any Affiliate of the Lessee has failed to comply with any Anti-Corruption Laws;

 

		(g)	it has instituted and maintains policies and procedures designed to prevent bribery
and corruption by the Lessee;

 

		(h)	it is conducting its operations at all times in material compliance with Anti-Money
Laundering Laws and no action, suit or proceeding by or before any court or governmental or regulatory agency, authority or body or any
arbitrator involving the Lessee with respect to the Anti-Money Laundering Laws is pending or, to its knowledge, threatened;

 

		(i)	except for (i) such filings, registrations and recordings as will have been made
on the Delivery Date as specified in Part A of Schedule 3 (Lessee Conditions Precedent) and (ii) the matters referred to in Clause
4.3 (Conditions Subsequent), all Authorisations required or desirable:

 

		(i)	to enable the Lessee lawfully to enter into, exercise its rights and comply with
its obligations in the Transaction Documents; and

 

    5

     

    

 

		(ii)	to make the Transaction Documents admissible in evidence in the State of Registration and, if different,
the Lessee’s jurisdiction of incorporation,

 

have been obtained or effected and are in full force and
effect;

 

		(j)	except as provided herein, under the Applicable Law of Chile it is not necessary
that the Transaction Documents be filed, recorded or enrolled with any court or other authority in that jurisdiction or that any stamp,
registration or similar tax be paid on or in relation to the Transaction Documents;

 

		(k)	its obligations under the Transaction Documents to which it is a party rank at
least pari passu with all of its present and future unsecured and unsubordinated obligations (including contingent obligations)
with the exception of such obligations as are mandatorily preferred by law and not by virtue of any contract and except as claims may
have been or may be granted priority status in the Chapter 11 Proceedings; and

 

		(l)	the lease rentals are exempt from Chilean income tax and withholding tax pursuant
to Decree Law No. 2.564 of 1979.

 

Lessor’s representations and warranties

 

	3.3	The Lessor further represents and warrants to the Lessee that:

 

		(a)	it is not involved in any litigation or other dispute nor is there any claim pending
against it, the outcome of which could reasonably be expected to adversely affect its financial condition in any material respect or its
ability to perform its material obligations under this Agreement or any other Transaction Document to which it is a party;

 

		(b)	neither it nor, to its knowledge, any director, officer, employee of the Lessor,
has failed to comply with any Anti-Corruption Laws;

 

		(c)	it has instituted and maintains policies and procedures designed to prevent bribery
and corruption by the Lessor;

 

		(d)	it is conducting its operations at all times in material compliance with Anti-Corruption
Laws and no action, suit or proceeding by or before any court or governmental or regulatory agency, authority or body or any arbitrator
involving the Lessor with respect to the Anti-Corruption Laws is pending or, to its knowledge, threatened;

 

		(e)	on the Delivery Date, title to the Aircraft is held by the Lessor as owner trustee
under a grantor trust and the only beneficiary under such grantor trust is the Beneficiary; and

 

		(f)	on the Delivery Date, the Lessor Guarantor will have a net worth of at least $25,000,000.

 

    6

     

    

 

Repetition of Lessor’s representations and warranties

 

	3.4	The representations and warranties given by the Lessor in Clause 3.1 (Representations
and warranties) and Clause 3.3 (Lessor’s representation and warranties) shall survive the execution of this Agreement and shall
be deemed to be repeated by the Lessor on the Delivery Date with reference to the facts and circumstances subsisting on such date.

 

Repetition of Lessee’s representations and warranties

 

	3.5	The representations and warranties given by the Lessee in Clause 3.1 (Representations
and warranties) and Clause 3.2 (Lessee’s representations and warranties) will survive the execution of this Agreement and shall
be deemed to be repeated by the Lessee on the Delivery Date with reference to the facts and circumstances subsisting on such date.

 

	4	Conditions

 

	4.1	Conditions Precedent

 

		(a)	The Lessor will have no obligation to deliver the Aircraft to the Lessee unless
the conditions precedent set out in Part A of Schedule 3 (Lessee Conditions Precedent) have been fulfilled in form and substance
reasonably satisfactory to the Lessor on or before the dates specified in Part A of Schedule 3 (Lessee Conditions Precedent) unless
deferred or waived by the Lessor in its absolute discretion; and

 

		(b)	The Lessee will have no obligation to accept the Aircraft hereunder unless the
conditions precedent set out in Part B of Schedule 3 (Lessor conditions precedent) have been fulfilled in form and substance reasonably
satisfactory to the Lessee on or before the dates specified in Part B of Schedule 3 (Lessor conditions precedent) unless deferred
by the Lessee in its absolute discretion.

 

	4.2	Waiver or Deferral of conditions precedent

 

		(a)	If the Lessor delivers the Aircraft to the Lessee even though it has not received
all of the documents and evidence referred to in Clause 4.1 (Conditions Precedent) on or prior to the date specified, the Lessor
may waive or defer any of the obligations of the Lessee listed in Part A of Schedule 3 (Lessee Conditions Precedent) on specific
conditions and at the Lessor’s sole discretion; and

 

		(b)	If the Lessee accepts the Aircraft even though it has not received all the documents
and evidence referred to in Clause 4.1 (Conditions Precedent) on or prior to the date specified, the Lessee may waive or defer
any of the obligations of the Lessor listed in Part B of Schedule 3 (Lessor conditions precedent) on specific conditions and at
the Lessee’s sole discretion.

 

    7

     

    

 

	4.3	Conditions Subsequent

 

The Lessee will perform all of
the actions and provide to the Lessor each of the documents and evidence listed in Part C of Schedule 3 (Lessee conditions subsequent)
in form and substance reasonably satisfactory to the Lessor by no later than the dates specified in Part C of Schedule 3 (Lessee conditions
subsequent).

 

	5	Delivery and Acceptance

 

Delivery

 

	5.1	The Lessor and the Lessee will follow the Delivery Procedure set out in Schedule 4 (Delivery Procedure).

 

Acceptance

 

	5.2	After completion of the Delivery Procedure set out in Schedule 4 (Delivery Procedure), if the
Aircraft meets the requirements as detailed in the Delivery Procedure, the Lessee shall accept the Aircraft on lease and shall effect acceptance of the
Aircraft

 

	Risk	REDACTED	*

 

	5.3	As from Delivery, the Lessee shall bear all risks associated with any loss of
or damage to the Aircraft until Redelivery.

 

Failure to take Delivery

 

	5.4	If the Lessee fails to take delivery of the Aircraft when tendered for delivery
by the Lessor in accordance with the terms of the Transaction Documents and provided that such failure is not caused by a Lessor Event,
the Lessee will indemnify the Lessor on demand for all costs and expenses incurred by the Lessor as a result of such failure. The Lessor
will use reasonable endeavours to eliminate or mitigate all such costs and expenses.

 

	5.5	The Lessor shall provide to the Lessee reasonable evidence, including calculations,
of such costs and expenses.

 

REDACTED *

 

	5.6	REDACTED *

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    8

     

    

 

		(a)	REDACTED *

 

 

;

 

 

		(b)	REDACTED *

 

 

 

 

 

 

 

 

		(c)	REDACTED *

 

 

 

 

 

		(d)	REDACTED *

 

 

 

 

 

 

	6	Payments

 

PBH Rent

 

	6.1	During the PBH Period, on each PBH Rent Payment Date, the
Lessee shall pay to the Lessor as Rent the PBH Rent. The Lessee shall provide to the Lessor details of the utilisation of the Aircraft
in the technical status report by no later than the tenth (10th) day of each month in accordance with Clause 9.2(a) for the purpose of
verifying the PBH Rent due during the PBH Rent Period. For the purposes of calculating the PBH Rent, any fraction of a Flight Hour shall
be rounded upward to the nearest one-tenth of a Flight Hour. On the twentieth (20th) Business Day of the month in which the technical
report is issued (the Invoice Date), the Lessor shall provide the Lessee with an invoice (the PBH Invoice) setting forth
the calculation and amount owed by the Lessee on account of the applicable PBH Rent Period. So long as the PBH Invoice is issued within
the time frame set forth herein, the Lessee shall pay to the Lessor the PBH Rent within ten (10) Business Days following the Invoice
Date (the PBH Rent Payment Date), provided, however, in the event of any delay in the issuance of the PBH Invoice, then the PBH
Rent Payment Date (and the Lessee’s obligation to pay the
PBH Rent) will be extended by one day for each day of delay in the issuance of the PBH Invoice.

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    9

     

    

 

PBH Extension Period

 

	6.2	REDACTED *

 

 

 

 

 

 

 

	6.3	REDACTED *

 

Fixed Rent

 

	6.4	During the Fixed Rent Period, on each Fixed Rent Payment Date, subject to Clause
14.19(b), the Lessee will pay to the Lessor as Rent the Fixed Rent.

 

Manner of payments

 

	6.5	All sums payable by the Lessee to the Lessor in the performance of its obligations
under the Transaction Documents will be paid on or prior to the due date, in Dollars and in immediately available funds for value on the
due date of payment into the account notified in writing by the Lessor to the Lessee at least fifteen (15) Business Days prior to the
Delivery Date (or such other account as the Lessor may notify in writing to the Lessee at least fifteen (15) Business Days prior to the
date such payment is due, provided always that payment to such other account will not result in any increased cost to the Lessee, pursuant
to Clause 15.4 or otherwise, under Applicable Laws in effect as of the date of such account change).

 

Late payments

 

	6.6	If either Party fails to pay any amount payable under this Agreement or any other
Transaction Document on the due date, it will (after the expiry of the applicable grace period) pay default interest on the overdue amount
from (and including) the date of expiry of the applicable grace period to (but excluding) the date on which such overdue amount is paid
in full, both before and after judgment at the Default Rate. All default interest will be calculated on the basis of the actual number
of days elapsed and a three hundred and sixty (360) day year.

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    10

     

    

 

Payments on Business Days

 

	6.7	If any payment of Rent, End of Lease Maintenance Payment Adjustments or Agreed
Value under this Agreement would otherwise be due on a non-Business Day, it will be due on the preceding Business Day. If any other payment
falls due on a non-Business Day, it will be due on the succeeding Business Day.

 

	7	Absolute and Unconditional Obligations

 

	7.1	The Lessee’s obligations to pay Rent, Agreed Value, End of Lease Maintenance Payment
Adjustments and any other amounts due under this Agreement and to perform all of its other obligations under this Agreement, are absolute
and unconditional, irrespective of any contingency, including without limitation:

 

		(a)	after Delivery, any unavailability of the Aircraft for any reason, including, but
not limited to, any defect in the airworthiness, merchantability, satisfactory condition, fitness for any purpose, condition, design or
operation of any kind or nature of the Aircraft;

 

		(b)	after Delivery, the ineligibility of the Aircraft for any particular use or trade,
or for registration or documentation under the laws of any relevant jurisdiction;

 

		(c)	the Total Loss (except as provided hereunder upon payment of the Agreed Value
and all other amounts (including Rent) then due and payable hereunder) of, or any damage to, the Aircraft, Airframe or any Engine;

 

		(d)	any set off, counterclaim, recoupment, withholding defence or other rights which
the Lessee may have against the Owner, the Lessor, any Financier (if applicable) or any other person;

 

		(e)	the exercise of any rights and/or remedies by the Lessor, the Owner and/or any
Financier (if applicable) under this Agreement or any other Transaction Document;

 

		(f)	any failure or delay on the part of any Party in performing or complying with any
of the terms or conditions of this Agreement or any other Transaction Document;

 

		(g)	any insolvency, bankruptcy, administration, reorganisation, arrangement, readjustment
of debt, dissolution, liquidation or similar proceedings by or against the Owner, the Lessor, any Financier (if applicable) or the Lessee;
or

 

		(h)	any lack of due authorisation of, or other defect in, this Agreement or any other
Transaction Document,

 

provided that nothing in this Clause 7 will
be construed to extinguish or otherwise limit the Lessee’s right to institute separate legal proceedings against the Lessor in the event
of the Lessor’s breach of this Agreement or to limit the
Lessee’s rights and remedies against the Lessor or any other person.

 

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	8	Lessor’s Obligations

 

Quiet enjoyment

 

	8.1	So long as no Event of Default has occurred and is continuing, the Lessor will
not, and will procure that neither the Owner, nor any person claiming by or through the Owner, will interfere with the Lessee’s right
or, if the Aircraft is subleased pursuant to a Permitted Sublease, the Permitted Sublessee’s right to have quiet use, enjoyment and possession
of the Aircraft during the Lease Period. The exercise by the Lessor, or any person claiming by or through the Lessor, of its rights under
or in connection with this Agreement or any other Transaction Document will not constitute such interference.

 

Warranties

 

	8.2	The Lessee or, if the Aircraft is subleased pursuant to a Permitted Sublease,
the Permitted Sublessee shall, during the Lease Period, enjoy the benefit of the Airframe Warranties and the Engine Warranties pursuant
to the terms of the Airframe Warranties Agreement and the Engine Warranties Agreement respectively.

 

	8.3	Save as provided below, during the Lease Period, the Lessor will allow the Lessee
or, if the Aircraft is subleased pursuant to a Permitted Sublease, the Permitted Sublessee to have the use and benefit of any other existing
and transferable manufacturer, vendor or supplier warranties relating to the Aircraft in each case subject to any necessary consents of
the relevant Manufacturer, vendor or supplier. The Lessor agrees to take such steps at the cost and expense of the Lessee, as are reasonably
necessary to enable the Lessee or, if the Aircraft is subleased pursuant to a Permitted Sublease, the Permitted Sublessee to receive the
benefits of such warranties. The Lessee and, if the Aircraft is subleased pursuant to a Permitted Sublease, the Permitted Sublessee will
have the benefit of any such warranties subject to any terms that the relevant Manufacturer, vendor or supplier may require.

 

	8.4	On the Expiry Date, the Lessee’s and, if the Aircraft is subleased pursuant to
a Permitted Sublease, the Permitted Sublessee’s rights under the warranties referred to in Clause 8.3 (including their respective
rights to pursue claims and receive payments thereunder) shall immediately revert to the Owner.

 

	8.5	On the Expiry Date, the Lessee and, if the Aircraft is subleased pursuant to a
Permitted Sublease, the Permitted Sublessee, will at the Lessee’s own cost and expense, take all steps necessary to ensure that
the benefit of any unexpired and transferable warranties relating to the Aircraft is vested in the Owner.

 

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Life Key/Lessor Care agreements

 

	8.6	The Lessor undertakes in favour of the Lessee that for the duration of the Lease
Period, the Engines shall be covered by Life Key/Lessor Care agreements entered into between the Lessor and the Engine Manufacturer and
that such Life Key/Lessor Care agreements will remain in full force and effect during such Lease Period.

 

	9	Information

 

Financial information

 

	9.1	During the Lease Period, the Lessee will deliver to the Lessor:

 

		(a)	as soon as practicable and not later than one hundred and twenty (120) days after
the end of the Lessee’s financial year to which they relate, a copy of its consolidated audited financial statements in English
(together with all notes) prepared in accordance with IFRS by a reputable firm of accountants. The financial statements will fairly and
accurately present the financial position of the Lessee as at the end of such financial year and the results of its operations for such
financial year and will disclose all material liabilities (contingent or otherwise) of the Lessee;

 

		(b)	as soon as practicable and not later than sixty (60) days after the end of the
Lessee’s financial quarter to which they relate, a copy of its consolidated management accounts in English (together with all notes)
prepared in accordance with IFRS by a reputable firm of accountants. The financial statements shall fairly and accurately present the
financial position of the Lessee as at the end of such financial quarter and the results of its operations for such financial quarter
and shall, in accordance with such accounting principles and practices, disclose all material liabilities (contingent or otherwise) of
the Lessee; and

 

		(c)	with reasonable promptness, such other financial information with respect to the
Lessee as the Lessor may from time to time reasonably request to the extent such information and data is relevant to the performance of
the Lessee’s obligations under this Agreement and in any event subject to any confidentiality restrictions on the Lessee in respect thereof,

 

provided, however, that the Lessee’s
obligations pursuant to Clause 9.1 shall be deemed satisfied should the Lessee publish the equivalent information required to be provided
by the Lessee pursuant to Clause 9.1, on the Lessee’s investor relations website which is publically available to the Lessor (currently
at www.latamairlinesgroup.net) or such other websites which are available to the Lessor.

 

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Technical information

 

	9.2	Throughout the Lease Period, the Lessee will:

 

		(a)	provide the Lessor within ten (10) days after the end of each month, a technical
report for the Aircraft for the preceding month in the form of Schedule 7 (Reporting and notices); and

 

		(b)	provide to the Lessor other technical information the Lessor may reasonably request
from time to time regarding the maintenance of the Aircraft.

 

Other information

 

	9.3	Throughout the Lease Period, the Lessee shall:

 

		(a)	notify the Lessor as soon as practicable of any loss, theft, damage or destruction
to the Aircraft, any Engine or any Part to the Aircraft if the potential cost may exceed the Damage Notification Threshold;

 

		(b)	notify the Lessor of any Default promptly after it occurs and the Lessee becomes
aware of it; and

 

		(c)	provide the Lessor, on request, with evidence that all Taxes (other than Lessor
Taxes) and charges incurred and payable by the Lessee in connection with the operation of the Aircraft, including those invoiced by airports
and air traffic control authorities have been paid in full in accordance with the then current arrangements agreed between the Lessee
and the relevant authority for the invoicing and payment of any such Taxes or charges. Such request shall not be made more frequently
than once in any twelve (12) month period unless an Event of Default has occurred and is continuing, where such limitation shall not apply.

 

	10	Control of the Aircraft

 

No disposal or encumbrance

 

	10.1	The Lessee shall not, and shall not attempt or hold itself out as having any power
to, sell, charge, lease (other than as expressly permitted by this Clause 10) or otherwise dispose of or encumber the Aircraft or any
part thereof.

 

Subleasing

 

	10.2	REDACTED *

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    14

     

    

 

REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    15

     

    

 

REDACTED
*

 

 

 

 

 

 

Continuing obligations

 

	10.5	The Lessee acknowledges and agrees that, notwithstanding any sublease or interchange
of the Aircraft, the Lessee will remain fully liable to perform its obligations under this Agreement and the other Transaction Documents
to which it is a party but to the extent the relevant Permitted Sublessee properly performs an obligation under the Permitted Sublease,
the Lessor agrees that such performance shall be regarded as discharging (to such extent) any corresponding obligations of the Lessee
under this Agreement.

 

Sublease event of default

 

	10.6	If an event of default (howsoever described) is continuing under a Permitted Sublease
while a Permitted Sublessee is in possession of the Aircraft, the Lessee shall promptly notify the Lessor of the steps that it is proposing
to take with respect to such event of default to enforce the terms of the Permitted Sublease and, where appropriate, to recover possession
of the Aircraft, or, as the case may be, to waive such event of default (subject to any such waiver being on reasonable terms and conditions).

 

Costs relating to subleasing

 

	10.7	All reasonable costs and expenses (including reasonable legal fees) incurred and
documented by the Lessor, the Owner (if different from the Lessor) or any Financier in connection with the implementation of any subleasing
or interchanging of the Aircraft pursuant to this Clause 10 being in put in place at Delivery shall be for the account of the Lessee,
provided the registration of any Financier’s interests in the Aircraft put in place at Delivery will be at the cost and expense of the
Lessor.

 

	10.8	In respect of any subleasing or interchanging of the Aircraft pursuant to this
Clause 10 other than set in Clause 10.7, all reasonable costs and expenses (including reasonable legal fees) incurred and documented by
the Lessor, the Owner (if different from the Lessor) or any Financier in connection with the implementation of any such subleasing or
interchanging of the Aircraft pursuant to this Clause 10 shall be for the account of the Lessee.

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    16

     

    

 

Performance by a Permitted Sublessee

 

	10.9	The Lessor agrees that performance by any Permitted Sublessee of any of the Lessee’s
obligations under this Agreement shall, pro tanto, constitute performance by the Lessee of such obligations.

 

	11	Engines and Parts

 

REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    17

     

    

 

REDACTED
*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    18

     

    

 

REDACTED
*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    19

     

    

 

REDACTED
*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

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	12	Registration, Certification and Filings

 

Registration with the Aviation Authority

 

	12.1	The Lessee shall, save as provided in Schedule 10 (Subleasing requirements)
(or with the prior written consent of the Lessor), register and maintain the registration of the Aircraft with the Aviation Authority
throughout the Lease Period in compliance with Applicable Law and this Agreement and will not do or permit to be done anything which could
reasonably be expected to adversely affect such registration.

 

	12.2	All expenses associated with such registration shall be at the sole cost, expense
and responsibility of the Lessee provided, however, that the Lessor shall pay any incremental costs associated with the registration of
any interests of the Financiers in the State of Registration at the time such interests are created, provided further, that the Lessee
shall be responsible for any costs associated with the registration of any interests of the Financiers in the State of Registration incurred
as a result of a subsequent change in the State of Registration pursuant to this Agreement.

 

	12.3	Throughout the Lease Period, the Lessee will:

 

		(a)	where it is the responsibility of the Lessee to do so under Applicable Law (i)
record on each relevant register of the Aviation Authority that the Owner is the owner of the Aircraft and, if applicable, that the Financiers
have a Security Interest in the Aircraft and (ii) file this Agreement and, if applicable, each Financing Document on that register, it
being agreed that any such recordings or filings in relation to the Financiers or the Financing Documents shall at the Lessor’s cost and
any other recordings or filings shall be at the Lessee’s cost;

 

		(b)	if to the extent permissible under Applicable Law and if applicable, at its own
cost, make any changes to any registration or filing that may be necessary or advisable to take account of any change in any modification
to the Aircraft (such as the permanent replacement of any Engine or Part by a Replacement Engine or Replacement Part) in accordance with
this Agreement or of any change in any Applicable Law; and

 

		(c)	if to the extent permissible under Applicable Law and if applicable, at the Lessor’s
cost and expense, make any changes to any registration or filing that may be necessary or advisable to take account of any change in the
ownership of the Aircraft or the interests of any Financier in the Aircraft.

 

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Certification

 

	12.4	The Lessee will take all actions needed to ensure that a current certificate of airworthiness (in
                                                                the appropriate category for the nature of the operations of the Aircraft) is maintained in full effect throughout the Lease Period,
except if such current certificate of airworthiness is withdrawn by the Aviation Authority when maintenance, overhaul or repair is being
carried out on the Aircraft in accordance with the provisions of this Agreement provided that such certificate of airworthiness
is immediately reinstated after such maintenance, overhaul or repair has been completed. Upon the Lessor’s request, the Lessee shall
provide a copy of the certificate of airworthiness and any supporting recommendations to the Lessor as soon as reasonably practicable
upon issuance or renewal.

 

Filings and documentary Taxes

 

	12.5	The Lessee will file or record each of the Transaction Documents which can be
filed or recorded by the Lessee and will pay any stamp duty or other documentary Taxes to which any of the Transaction Documents are or
may become subject, in each case punctually and as may be necessary under Applicable Law.

 

Cape Town Convention

 

	12.6	If the state in which the Lessee and/or a Permitted Sublessee is situated, the
location of the Lessee’s or any Permitted Sublessee’s principal place of business or registered office, or the State of Registration has,
or at any time brings into force, any legislative or other provisions giving effect to the Convention and the Protocol, the Lessee (at
the Lessee’s cost and expense) (i) shall consent to the registration
of any international interests or prospective international interests with the International Registry with respect to the Airframe and/or
any Engine and constituted by this Agreement and (ii) shall (and shall procure that any Permitted Sublessee shall) from time to time,
do or cause to be done (and consents to the Lessor, the Owner or any Financier doing or causing to be done) any and all acts and things
capable of being done by the Lessee or any Permitted Sublessee which may be required to ensure that the Owner, the Lessor and any Financier
has the full benefit of the Convention and the Protocol in connection with the Airframe and/or any Engine, including:

 

		(a)	any matters connected with registering, perfecting, and/or preserving any international
interest(s) vested in the name of the Owner, the Lessor or any Financier with respect to the Airframe and/or any Engine and constituted
by this Agreement and any international interests arising out of any Permitted Sublease, including any applicable certified designee letter
to the extent available and if required, obtaining any authorising entry point codes from the State of Registration necessary to effectuate
the foregoing;

 

		(b)	constituting any international interest(s) to be vested in the Owner, the Lessor
or any Financier with respect to the Airframe and/or any Engine in connection with this Agreement and any international interests arising
out of any Permitted Sublease, including any applicable certified designee letter;

 

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		(c)	entry into agreements (subordination or otherwise) to protect the priority of any
international interest(s) referred to in Clause 12.6(b);

 

		(d)	agreeing to, consenting to, and acknowledging any assignment the Lessor enters, or
has entered, into with a Financier in connection with this Agreement;

 

		(e)	excluding in writing the application of any provisions of the Convention and/or
Protocol that the Lessor may deem desirable in connection with the foregoing;

 

		(f)	granting the right to discharge in respect of an international interest to the
Lessor or, at the Lessor’s direction, to a Financier;

 

		(g)	executing an IDERA in favour of the Lessor, or if required by the Lessor, the
Security Trustee, submitting the same to the Aviation Authority for recordation and providing the recorded IDERA to the Lessor, or at
the Lessor’s direction, to the Lessor’s counsel in the State of Registration;

 

		(h)	not registering, or consenting to the registration of, any conflicting interests
(whether or not taking priority over the Owner’s, the Lessor’s or any Financier’s international interests) at the International Registry
without the Lessor’s prior written consent; and

 

		(i)	not executing or submitting, or permitting a Permitted Sublessee to execute or
submit an IDERA for recordation in favour of any creditor other than the Lessor or the Security Trustee without the Lessor’s prior written
consent.

 

	12.7	The Lessee shall not permit any person to register a prospective international
interest, international interest or national interest at the International Registry without the prior written consent of the Lessor except
for any such interests created where:

 

		(a)	the Lessee is the debtor and one of the Lessor, the Owner or the Security Trustee
is the creditor;

 

		(b)	the Lessor is the debtor and one of the Owner or the Security Trustee is the creditor; or

 

		(c)	the Owner is the debtor and one of the Lessor or the Security Trustee is the creditor.

 

	12.8	The Lessee will promptly notify the Lessor on becoming aware of the registration
of any non- consensual right or interest at the International Registry against the Airframe or any Engine and take all steps necessary
to procure the discharge and deregistration of such interest.

 

	12.9	In Clauses 12.6 to 12.9:

 

		(a)	the following expressions shall have the respective meanings given to them in Article
1 of the Cape Town Convention:

 

		(i)	airframe;

 

    23

     

    

 

		(ii)	creditor;

 

		(iii)	debtor;

 

		(iv)	international interest;

 

		(v)	International Registry;

 

		(vi)	national interests;

 

		(vii)	non-consensual right or interest;

 

		(viii)	prospective international interest; and

 

		(ix)	state of registry; and

 

		(b)	state in which the Lessee is situated shall be construed
in accordance with Article 4 of the Cape Town Convention.

 

	13	Title Protection and Operation

 

Nameplates

 

	13.1	Throughout the Lease Period, the Lessee will at its own cost install and maintain
or procure that there are installed and maintained fireproof nameplates not less than 7cm by 5cm affixed in a prominent position in the
cockpit or cabin of the Aircraft and on each Engine showing the following:

 

“THIS [AIRCRAFT MSN 38459]
[ENGINE ESN [10370 / 10337]] IS OWNED BY UMB BANK, N.A., NOT IN ITS INDIVIDUAL CAPACITY BUT SOLELY AS OWNER TRUSTEE AND IS LEASED TO LATAM
AIRLINES GROUP S.A. AND IS OPERATED BY LATAM AIRLINES GROUP S.A. OR ONE OF ITS AFFILIATES [AND IS SUBJECT TO A MORTGAGE IN FAVOUR OF [   ]]”.

 

Lessee’s rights and Title Protection

 

13.2

 

		(a)	The Lessee shall have no right, title or interest in or to any part of the Aircraft
except the rights expressly set out in this Agreement, it being expressly agreed and acknowledged by the Lessee that title to the Aircraft
shall remain vested in the Owner subject to any Security Interests arising under the Financing Documents in favour of the Financiers (or
any of them).

 

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		(b)	The Lessee shall:

 

		(i)	not do or knowingly permit to be done or omit or knowingly permit to be omitted
to be done any act or thing which might reasonably be expected to jeopardise the respective rights, title and interest of the Lessor and
the Financiers in and to the Aircraft, the Transaction Documents or the validity, enforceability or priority thereof;

 

		(ii)	on all occasions when the ownership of the Aircraft, any Engine or any Part is
relevant, make clear to third parties that title is held by the Owner.

 

		(c)	The Lessee will not:

 

		(i)	hold itself out as owner of the Aircraft; or

 

		(ii)	represent to third parties that the Lessor, the Owner or any Financier is in any
way associated with or responsible for the business activities of the Lessee; or

 

		(iii)	pledge the credit of the Lessor, the Owner or any Financier.

 

Security Interests

 

	13.3	As soon as reasonably practicable the Lessee will take any action that may be necessary
to discharge any Security Interest described in paragraph (a) or (b) of the definition of Permitted Security Interests.

 

Operation

 

	13.4	The Lessee will not (and will procure that any Permitted Sublessee will not) use
or operate the Aircraft, or permit the Aircraft to be used or operated:

 

		(a)	in breach of any Applicable Law which is applicable to the Aircraft or its use
or operation during the Lease Period;

 

		(b)	for any purpose for which the Aircraft was not designed or contrary to any recommendation
or outside of operational limits permitted by of the Airframe Manufacturer, the Engine Manufacturer or the Aviation Authority;

 

		(c)	for the carriage of:

 

		(i)	whole animals living or dead except in the cargo compartment according to IATA
regulations (except for guide dogs or domestic pet animals carried in a suitable container to prevent the escape of any liquid and to
ensure the welfare of the animal);

 

    25

     

    

 

		(ii)	acids, toxic chemicals, other corrosive materials, explosives, nuclear fuels,
nuclear wastes, or any nuclear assemblies or components, except as permitted for passenger aircraft under the “Restriction of Goods”
schedule issued by IATA from time to time and provided that all the requirements for packaging or otherwise contained therein are fulfilled;

 

		(iii)	any other goods, materials or items of cargo which could reasonably be expected
to cause damage to the Aircraft and which would not be adequately covered by the Insurances; or

 

		(iv)	any illegal items or substances which, with the exercise of reasonable diligence,
could have been avoided;

 

		(d)	in any circumstances or geographic location where the Aircraft is not covered
by the Insurance;

 

		(e)	or permit the Aircraft to proceed to, or remain at, or operate from any location
in a Prohibited Country except that over flights may be conducted provided they comply with all Applicable Law and the terms of the Insurances;
or

 

		(f)	for any training, demonstration or test flights but the Lessee or any Permitted
Sublessee will be entitled to undertake flight deck crew training of their own personnel provided that the use of the Aircraft
for such crew training is not disproportionate to the amount of such crew training on other aircraft of the same type as the Aircraft
operated by the Lessee or any Permitted Sublessee.

 

	13.5	The Lessee will (and will procure that any Permitted Sublessee will):

 

		(a)	keep the main operational base of the Aircraft at the Habitual Base;

 

		(b)	use the Aircraft solely in commercial or other operations for which the Lessee
is duly authorised by the Aviation Authority and the Applicable Law;

 

		(c)	ensure that the crew and engineers employed by the Lessee in connection with the
operation and maintenance of the Aircraft have the qualifications and hold the licences required by the Aviation Authority and the Applicable
Law;

 

		(d)	obtain and maintain in full force all certificates, licences, permits and authorisations
for the time being required for the use and operation of the Aircraft and for the making of payments by the Lessee as required by, and
the compliance by the Lessee with its other obligations under, this Agreement; and

 

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		(e)	not abandon the Aircraft or knowingly do, or permit to be done, anything which
may expose the Aircraft or any part of it to the risk of damage, destruction, arrest, confiscation, seizure, forfeiture, impounding, detention
or appropriation.

 

	13.6	The Lessee will not do or permit to be done anything which could reasonably be
expected to prejudice any right which the Lessor, the Owner or any Financier may have against the Airframe Manufacturer, the Engine Manufacturer
or any other Manufacturer or supplier of any Part.

 

	14	Technical

 

Maintenance, overhaul and repair

 

	14.1	Throughout the Lease Period, the Lessee will at its own cost arrange for the Aircraft
to be maintained, overhauled and repaired by an Approved Maintenance Performer, so that:

 

		(a)	the Aircraft is kept safe for operation and airworthy in all respects in compliance
with all requirements of the Aviation Authority and to the extent applicable the FAA;

 

		(b)	all maintenance is conducted in accordance with the Maintenance Programme by the
Approved Maintenance Performer;

 

		(c)	the Aircraft is maintained, serviced and repaired in the same manner and with
the same care as used by the Lessee with respect to aircraft of the same model operated by such party;

 

		(d)	all airworthiness certificates in respect of the Aircraft are maintained in good
order at all times under the laws of the State of Registration except (to the extent permitted under Applicable Law) during periods of
maintenance or repair; and

 

		(e)	detailed maintenance records and associated maintenance data are kept in respect
of such maintenance and repair.

 

Aircraft Documents

REDACTED *

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    27

     

    

 

REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    28

     

    

 

REDACTED*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    29

     

    

 

REDACTED*
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    30

     

    

 

REDACTED*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    31

     

    

 

REDACTED*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

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	15	Indemnities

 

General Indemnity

 

	15.1	Subject to the exclusions set out in Clause 15.2, the Lessee shall immediately
upon demand, indemnify each of the Indemnitees against any and all Losses which an Indemnitee may suffer or incur, whether directly or
indirectly (and regardless of when the same are suffered or incurred) as a result of or in connection
with:

 

REDACTED
*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

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REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

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Withholdings

 

	15.3	The Lessee will not deduct any amount from any of its payments under the Transaction
Documents, for or on account of any Taxes, unless the Lessee is obliged to do so under any Applicable Law.

 

	15.4	If the Lessee has to make a deduction as described in Clause 15.3, the Lessee must:

 

		(a)	deduct the minimum amount necessary to comply with its legal obligations;

 

		(b)	pay the Tax to the relevant authority in accordance with all Applicable Law;

 

		(c)	pay to the Lessor an additional amount so that the Lessor receives a net amount
on the relevant payment date, that is equal to the amount that it would have received if the deduction had not been made; and

 

		(d)	obtain a receipt or, if not legally possible, provide other evidence for the payment
of such Tax from the relevant authority and give it to the Lessor.

 

	15.5	If, following the making of any increased payment by the Lessee resulting from
a requirement for the Lessee to make any Tax deduction, (a) the Lessor receives or is granted a credit against, remission or repayment
of any Tax (a Tax Credit) payable by it which is referable to such Tax deduction or any increased payment made by the Lessee to
the Lessor, and (b) such Tax Credit confers a genuine benefit on the Lessor, the Lessor shall, to the extent that it is satisfied that
it can do so without prejudice to the retention of such Tax Credit and the right of the Lessor to obtain any other relief or allowance
which may be available to it, and provided that no Event of Default has occurred and is continuing, reimburse the Lessee with such amount
as the Lessor shall certify (substantiating in reasonably sufficient detail the amount concerned) to the Lessee to be the proportion of
the relevant Tax Credit as will leave the Lessor (after such reimbursement) in no better or worse position than it would have been in
had there been no Tax deduction. Nothing in this Clause 15.5 shall:

 

		(a)	interfere with the right of the Lessor to arrange its Tax affairs in whatever
manner it thinks fit; or

 

		(b)	oblige the Lessor to disclose any information relating to its Tax affairs or any
Tax computations.

 

Payment of Taxes

 

	15.6	Subject to any exceptions expressly set out in this Agreement, the Lessee shall
promptly pay all Taxes imposed by any Government Entity with respect to this Agreement, the Lessee’s use of the Aircraft, and any Permitted
Sublessee’s use of the Aircraft, in accordance with Applicable Law, including without limitation with respect to the ownership, delivery,
leasing, sub-leasing, possession, use, operation, importation, exportation,
redelivery, sale or other disposition of the Aircraft.

 

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Tax Indemnity

 

	15.7	Subject to the exclusions set out in Clause 15.8, the Lessee shall immediately
upon demand indemnify and hold harmless each of the Tax Indemnitees against any and all Taxes which a Tax Indemnitee may suffer or incur,
whether directly or indirectly and which arise (and regardless of when the same are suffered or incurred) as a result of the ownership,
maintenance, service repair, overhaul, delivery, possession, transfer of title or possession, import, export, pooling, modification, leasing,
inspection, refurbishment, replacement, transportation, storing, testing, design, sub-leasing, positioning, interchange, condition, environmental
damage, use, operation, control, location, alternation, registration or redelivery of the Aircraft, the Airframe, any Engine, any Part.

 

	15.8	The Lessee will not be required to indemnify any Tax Indemnitee under Clause 15.7
or pay such Taxes pursuant to Clause 15.6 to the extent the Tax for which the indemnity claim is made or the payment obligations applies:

 

		(a)	is covered pursuant to another indemnity provision of this Agreement and payment such Tax Indemnitee
under such other indemnity has actually been received by the Lessor; or

 

		(b)	arises as a result of any Lessor Lien or Lessor Tax.

 

VAT

 

	15.9	For the purposes of Clauses 15.9, 15.10 and 15.11:

 

		(a)	VAT - includes value added tax and any goods and services, sales or turnover tax, imposition
or levy of a like nature.

 

		(b)	Supply - includes anything on which VAT is charged.

 

	15.10	The Lessee must pay the Lessor or the relevant tax authority (as applicable) the
amount of any VAT which is chargeable for any Supply made by the Lessor under any of the Transaction Documents.

 

	15.11	Each amount shown which the Lessee must pay under the Transaction Documents does
not include VAT and if VAT is payable in respect of any amount, the Lessee shall pay all such VAT and shall indemnify the Lessor against
any claims for the same (and where appropriate the Lessee shall increase the payments which would otherwise be required to be made hereunder
so that the Lessor is left in the same position as it would have been in had no VAT been payable); and the Lessee shall provide evidence
to the Lessor in respect of payment of any such VAT.

 

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Currency protection

 

	15.12	The Lessee agrees to indemnify each Indemnitee against any Loss which such Indemnitee
suffers in converting any sum into Dollars if:

 

		(a)	such Indemnitee receives an amount relating to the Lessee’s obligations in a different
currency from that in which payments should be made under the Transaction Documents; or

 

		(b)	the Lessee pays a judgment or claim in a different currency from that in which
payments should be made under the Transaction Documents.

 

	15.13	The Lessee waives any right it may have in any jurisdiction to pay any amount
under the Transaction Documents in a currency other than the contractual currency.

 

Tax on indemnity payments

 

	15.14	The amount of any payment made under this Clause 15 must take into account the
Tax treatment of the payment and of the Loss or Tax in respect of which the payment is claimed so that the Indemnitee is fully compensated,
after that Tax treatment has been taken into account, for the Loss or Tax for which the relevant claim is made.

 

No indemnification of persons other than a Tax Indemnitee

 

	15.15	For the avoidance of doubt, nothing in this Agreement shall have the effect of
requiring the Lessee to indemnify any person (including any Financiers) other than a Tax Indemnitee against any Taxes which such person
may suffer or incur, or to make any payment to a Tax Indemnitee in respect of any Tax which another person (including any Financiers)
may suffer or incur.

 

Mitigation

 

	15.16	

 

		(a)	If any Indemnitee becomes aware of any Loss or Tax which may give rise to an indemnity
obligation on the part of the Lessee under this Clause 15 (Indemnities) such Indemnitee shall notify the Lessee thereof, and, if
requested by the Lessee take such action as is reasonably practicable (and the Lessee shall pay the Indemnitee’s costs and expenses) to
defend or mitigate the relevant Loss or Tax (without prejudice to the Lessee’s obligation to indemnify hereunder) provided that:

 

		(i)	no such action may be taken by the Lessee or shall be required to be taken by
such Indemnitee unless adequate provision in respect of the Loss or Tax and any associated costs or expenses has been made by the Lessee
to the reasonable satisfaction of such Indemnitee (having regard to
the nature and the amount of the Loss);

 

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		(ii)	the Lessee shall indemnify such Indemnitee in full on demand in respect of any
fees, costs or expenses suffered or incurred by the Lessor in connection with any action taken by such Indemnitee or Lessee as aforesaid;
and

 

		(iii)	such action does not present a risk of the imposition of criminal penalties or
civil penalties or any risk of the sale, forfeiture, or the loss of, or the creation of any Security Interest on the Aircraft, or any
other adverse effect on the interests of an Indemnitee.

 

		(b)	Notwithstanding the forgoing, no Indemnitee shall be required to take, or omit
to take, any action, if the effect of such action or omission would reasonably be expected to adversely affect the Indemnitee (or its
business affairs or reputation) or would be contrary to Applicable Law.

 

		(c)	Nothing in this Clause 15.16 shall in any way limit or diminish the obligations
of the Lessee under this Agreement or the Transaction Documents to indemnify the Indemnitees in accordance with the provisions of this
Clause 15 (Indemnities).

 

	16	Total Loss

 

Risk of Loss

 

	16.1	The Lessee will be responsible for all risks associated with a Total Loss throughout
the Lease Period.

 

Total Loss: Airframe

 

	16.2	If the Airframe suffers a Total Loss at any time prior to Delivery, this Agreement
will immediately terminate and neither Party will have any further obligations hereunder except as expressly stated and save for accrued
rights, obligations and claims and any obligations expressed to survive the termination of this Agreement.

 

	16.3	If the Airframe suffers a Total Loss at any time after Delivery:

 

		(a)	the Lessee will pay the Agreed Value to the Loss Payee on the Total Loss Payment Date;

 

		(b)	the Lessee will continue to perform those of its obligations that remain capable
of performance (including, for the avoidance of doubt, the payment of Rent) up to and including the Total Loss Payment Date; and

 

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		(c)	subject to the rights of any insurers, reinsurers or other third party, upon irrevocable
payment in full of the Agreed Value to the Loss Payee and all other amounts which may be payable by the Lessee under this Agreement, the
Lessor will transfer (or procure that the Owner transfers) all of its rights, title and interest in and to the Aircraft (including each
Engine) to the Lessee or its nominee and will return to the Lessee any surplus proceeds of insurance provided to the Lessor over and above
the amount of such Agreed Value. Ownership will be transferred on an “as-is, where-is” basis without any recourse or warranty
except that there are no Lessor Liens and that the Lessor will execute or cause to be executed and delivered such bills of sale and other
documents and instruments as the Lessee may reasonably request to evidence (on the public record or otherwise) the transfer and the vesting
of the Owner’s rights, title and interest in and to the Aircraft in the Lessee, free and clear of all rights of the Owner and any Lessor
Liens. The Lessee shall indemnify the Lessor and the Owner for all fees and expenses properly incurred and Taxes incurred by the Lessor
or the Owner resulting from their compliance with this Clause 16.3(c).

 

Total Loss:
Engine or Part

 

		16.4	If an Engine or a Part suffers a Total Loss which does not also involve a Total
Loss of the Airframe (and as if, for these purposes, all references in the definition of Total Loss to Aircraft were to
Engine or Part as the context may require) the Lessee shall:

 

		(a)	in the case of a lost Engine, APU or Landing Gear notify the Lessor promptly after
becoming aware of the same;

 

		(b)	replace the lost Engine or lost Part with a Replacement Engine or Replacement
Part (as applicable) in accordance with Clause 16.5 below; and

 

		(c)	continue to pay Rent and all other sums due under this Agreement as if the Total
Loss had not occurred.

 

		16.5	As soon as practicable after the Total Loss referred to in Clause 16.4 above and
in any event within one hundred and twenty (120) days of the occurrence thereof, the Lessee shall replace the lost Engine or lost Part
at its own expense by ensuring that:

 

		(a)	title to a Replacement Engine or Replacement Part (and any Manufacturer Warranties
relating to that Replacement Engine or Replacement Part) vests in the Owner free of any Security Interest other than Permitted Security
Interests and becomes subject to this Agreement and to the Financing Documents; and

 

		(b)	the Lessee shall have caused all registrations and filings as required by law
or reasonably requested by the Lessor, the Owner or any Financier (including without limitation those to be made with the International
Registry) regarding such Replacement Engine (at the expense of the
Lessee) as are necessary to ensure the protection and contemplated priority of the rights and interests of the Owner, Lessor, any Financier
in respect thereof, as determined by the Owner, acting reasonably (and in any event at least to the same extent as the registrations made
with respect to the Engines under this Agreement,

 

following which the Replacement Engine or Replacement
Part shall, as the case may be become an Engine or Part.

 

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		16.6	After the Lessee has carried out all of its obligations under Clauses 16.4 and
16.5, and unless the insurers are entitled to the replaced Engine or Part as salvage, the Lessor will, if requested, make sure that the
Owner will transfer ownership of the replaced Engine or Part to the Lessee or its nominee. Ownership will be transferred on an “as-is,
where-is” basis without any recourse or warranty except that there are no Lessor Liens and that the Lessor will execute or cause
to be executed and delivered such bills of sale and other documents and instruments as the Lessee may reasonably request to evidence (on
the public record or otherwise) the transfer and the vesting of the Owner’s rights, title and interest in and to such Engine or Part in
the Lessee, free and clear of all rights of the Owner and any Lessor Liens. The Lessee shall indemnify the Lessor and the Owner for all
fees and expenses properly incurred and Taxes incurred by the Lessor or the Owner resulting from their compliance with this Clause 16.6.

 

		17	Requisition

 

No Default

 

		17.1	If the Aircraft is requisitioned for use which does not constitute a Total Loss,
then provided that all the provisions of this Agreement are complied with (including Insurance) there will be no Default as a result of
such requisitioning and throughout the Requisitioning Period:

 

		(a)	the Lessee will continue to pay Rent and perform those of its obligations that remain capable of performance;

 

		(b)	the Lessee will be entitled to any hire paid by the requisitioning authority prior to the Expiry Date
so long as no Event of Default has occurred and is continuing; and

 

		(c)	if the Requisitioning Period extends beyond the Scheduled Expiry Date, the Lessor will have an option,
exercisable on notice to the Lessee, either:

 

		(i)	to continue the leasing of the Aircraft until the date on which the Aircraft ceases to be subject to
such requisition; or

 

		(ii)	to treat the leasing of the Aircraft as terminated.

 

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Continuing leasing

 

		17.2	If the Lessor chooses to continue the leasing of the Aircraft as contemplated in
Clause 17.1(c), all of the obligations of the Lessee which remain capable of performance (including the obligations to pay Rent and procure
insurance at the same rate and on the same basis as before the Scheduled Expiry Date) will continue until the Expiry Date. In such circumstances,
the Lessee will be entitled to any hire paid by the requisitioning authority which is attributable to the period in question, so long
as no Event of Default has occurred which is continuing.

 

		17.3	If the Lessor chooses to treat the leasing of the Aircraft as terminated, as contemplated
in Clause 17.1(c)(ii) the Lessor will be entitled to any hire paid by the requisitioning authority after the Expiry Date.

 

		17.4	At the end of the Requisitioning Period, and irrespective of the option chosen,
the Lessee will put the Aircraft into the Redelivery Condition and redeliver it to the Lessor in accordance with Clause 19 (Return
of the Aircraft).

 

Compensation

 

		17.5	In the case of a requisition for use, the Lessor will be entitled to all compensation
paid by the requisitioning authority for any structural change, damage or wear and tear to the Aircraft, but the Lessor will either use
that compensation:

 

		(a)	to reimburse the Lessee for the expense of complying with its obligations under this Agreement including
its obligations to put the Aircraft into the Redelivery Condition; or

 

		(b)	if an Event of Default has occurred and is continuing, towards settlement of any amounts owing by the
Lessee under the Transaction Documents,

 

and any surplus amounts shall be retained by the Lessor.

 

		18	Insurance

 

General Requirements

 

REDACTED *

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

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REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

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REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

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REDACTED *

 

 

 

 

 

 

 

 

 

 

		19	Return of the Aircraft

 

Return

 

		19.1	Unless the Aircraft has suffered a Total Loss or the circumstances
set out in Clause 22.2 (Return Condition Applicable to Lessor Illegality) apply, the Lessee will redeliver the Aircraft to the
Lessor on the Expiry Date, at the Redelivery Location in the Redelivery Condition and free and clear of all Security Interests (other
than Lessor Liens).

 

Rectification

 

REDACTED *

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

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REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Export and deregistration

 

		19.4	Upon Redelivery, the Lessee will provide (and procure that any Permitted Sublessee
provides) to the Lessor upon the Lessor’s request, all documents and other reasonable assistance from the Lessee (a) necessary to export
the Aircraft from the State of Registration (or, if different, the country where the Aircraft is located at Redelivery) (including, if
required by Applicable Laws, a valid and subsisting export license for the Aircraft) and (b) required to deregister the Aircraft from
the aircraft register maintained by the Aviation Authority.

 

		19.5	The Lessee shall also provide the Lessor with an export certificate of airworthiness
issued by the Aviation Authority in accordance with the requirements set forth in paragraph 1(c) of Part B of Schedule 9.

 

Acknowledgement

 

		19.6	Provided the Lessee has complied with its obligations under this Clause 19 and
Schedule 9 (Redelivery), following Redelivery of the Aircraft (including the Aircraft Documents) by the Lessee to the Lessor at
the Redelivery Location and in the Redelivery Condition, the Lessor will deliver to the Lessee written acknowledgement confirming that
the Lessee has redelivered the Aircraft to the Lessor in the Redelivery Condition in the form of the Redelivery Acceptance Certificate.

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

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Title

 

		19.7	Title to any loose equipment installed in the Aircraft on Redelivery shall, without
further act, vest in the Owner, free and clear of Security Interests other than Lessor Liens, unless otherwise agreed by the Lessor and
the Lessee in writing.

 

End of Lease Maintenance Payment Adjustments

 

		19.8	On the Expiry Date, the Lessee will pay to the Lessor, or the Lessor will pay to
the Lessee, as the case may be, the End of Lease Maintenance Payment Adjustments as set out in Schedule 6 (End of Lease Maintenance
Payment Adjustments).

 

		20	Events of Default

 

REDACTED
*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

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REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

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REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

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REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

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REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

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REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

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REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

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REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

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REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

		22	Illegality

 

		22.1	If as a result of any change in Applicable Law after the date of this Agreement
it becomes unlawful for the Lessor or the Lessee to perform any of their material obligations under this Agreement, the Lessor may by
notice in writing to the Lessee terminate the leasing of the Aircraft under this Agreement, such termination to take effect on the latest
date on which the Lessor or the Lessee, as the case may be, may continue such leasing and such obligations without being in breach of
Applicable Law (the Effective Date), and:

 

		(a)	In case of a Lessee Illegality Event: the Lessee will as soon as reasonably practicable
redeliver the Aircraft to the Lessor in accordance with Clause 19 (Return of the Aircraft), the applicable provisions of Part A
of Schedule 9 (Redelivery Procedure) taking into account such Lessee Illegality Event and the provisions of Part B of Schedule
9 (Redelivery Condition) and shall pay to the Lessor amounts equal to those specified in Clause 21.3 (Payments). The provisions
of Clause 21.4 (Sale or re-lease of the Aircraft) and 21.5 (Deregistration) shall apply in respect of any such termination.
Without prejudice to the foregoing, the Lessor and the Lessee will consult in good faith up to the Effective Date as to any steps which
may be taken to restructure the transaction to avoid such unlawfulness and to enter into substitute arrangements which are valid, legal
and enforceable and which have the same commercial effect as this Agreement; or

 

		(b)	In case of a Lessor Illegality Event: the Lessee will as soon as reasonably practicable
redeliver the Aircraft to the Lessor in accordance with Clause 19 (Return of the Aircraft) but with the redelivery conditions set
out in Clause 22.2 (Return Condition applicable to Lessor Illegality) applying instead of those return procedures and conditions
set out in Schedule 9 (Redelivery Procedure and Redelivery Condition). The provisions of Clause 21.5 (Deregistration)
shall apply in respect of any such termination. Without prejudice to the foregoing, the Lessor and the Lessee will consult in good faith
up to the Effective Date as to any steps which may
be taken to restructure the transaction to avoid such unlawfulness and to enter into substitute arrangements which are valid, legal and
enforceable and which have the same commercial effect as this Agreement.

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

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Return Condition Applicable to Lessor Illegality

 

		22.2	In circumstances where the Lessee is obliged to redeliver the Aircraft pursuant
to Clause 22.1 following the occurrence of a Lessor Illegality Event, the Lessee shall not be obliged to return the Aircraft in accordance
with the return conditions set out in Part B of Schedule 9 (Redelivery Condition) and shall only be obliged to return the Aircraft
in accordance with the following conditions which shall apply instead of those set out in Part B of Schedule 9 (Redelivery Condition):

 

		(a)	The Aircraft shall be returned with a current Certificate of Airworthiness and,
if applicable, the Lessee will assist the Lessor in obtaining a Certificate of Airworthiness for Export issued by the Aviation Authority
to the next country of registry (such country to be designated in writing by the Lessor to the Lessee in sufficient time to enable the
Lessee to arrange for the issue of the same by the Aviation Authority).

 

		(b)	The Airframe shall have its next sequential “A” check completed.

 

		(c)	The Lessee will facilitate other reconfiguration work requested by the Lessor
at the Lessor’s cost. Any such reconfiguration work will not involve any major modifications or alterations to the Aircraft. The Lessee
shall not pay Rent while the Aircraft undergoes any additional work requested by the Lessor and the Lessee shall only undertake such work
if the Lessee is satisfied that it will not delay the process of redelivering the Aircraft to the Lessor. The Lessee agrees to notify
the Lessor if the work requested by the Lessor will affect the timing of the redelivery of the Aircraft and provide the Lessor with a
reasonable explanation as to why this is the case.

 

		(d)	The Engines will be returned in serviceable condition with no abnormal deterioration
in the performance of any Engine.

 

		(e)	The APU will be serviceable.

 

		(f)	Each Engine and the APU shall pass a magnetic chip detection inspection in accordance
with the AMM.

 

		(g)	All Parts, taken as a group shall have an average total Flight Hours and Cycles
since new of no more than 115% of the total Flight Hours and Cycles since new accumulated on the Airframe or applicable Engine.

 

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		(h)	There shall be no temporary, time-limited or interim repairs on the Aircraft unless
the Manufacturer specifically recommends such repair.

 

		(i)	The Lessee, if applicable, shall pay the End of Lease Maintenance Payment Adjustments
as set out in Schedule 6 (End of Lease Maintenance Payment Adjustments) in respect of the period up to the date on which the Aircraft
is redelivered to the Lessor in accordance with this Clause 22.2.

 

		(j)	All Aircraft systems software shall be up-to-date as of the date on which the
Lessee redelivers the Aircraft in accordance with this Clause 22.2.

 

		(k)	Wheels, tyres and brakes shall be serviceable.

 

		22.3	Provided the Lessee has complied with its obligations under Clause 22.2, following
the Aircraft being redelivered by the Lessee to the Lessor in accordance with the conditions specified above, the Lessor will deliver
to the Lessee written acknowledgement confirming that the Lessee has redelivered the Aircraft to the Lessor in accordance with Clause
22.2.

 

		22.4	Title to any loose equipment installed in the Aircraft upon the Aircraft being
re-delivered pursuant to Clause 22.2 shall, without further act, vest in the Owner, free and clear of Security Interests other than Lessor
Liens, unless otherwise agreed by the Lessor and the Lessee in writing.

 

		23	Termination Due to Chapter 11 Cases

 

REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

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REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

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		24	Disclaimer

 

Exclusion

 

REDACTED *

 

 

 

 

 

 

  

		(a)	none of the Lessor, the Owner, the Security Trustee, the Financiers, the Servicer
or any other Indemnitee (collectively, the Protected Parties) will have any liability to the Lessee or any other person in relation
to, and no Protected Party has made or given, nor will be deemed to have made or given (whether by virtue of having done or failed to
do any act or having acquired or failed to acquire any status under or in relation to this Agreement or otherwise), any warranties or
representations, express or implied, with respect to the Aircraft, including (but not limited to) the description, airworthiness, compliance
with specifications, operation, merchantability, satisfactory quality, freedom from infringement of patent or other proprietary rights,
fitness for any particular use or purpose, value, durability, condition, or design or as to the quality of the material or workmanship,
the absence of latent or other defects, whether or not discoverable, or as to any other matter whatsoever, express or implied (including
any implied warranty from a course of performance, dealing, usage or trade with respect to the Aircraft); and

 

		(b)	no Protected Party will have any obligation or liability whatsoever to the Lessee
(whether arising in contract or in tort, and whether arising by reference to negligence or strict liability of the Protected Parties or
otherwise) for:

 

		(i)	any liability, loss or damage caused or alleged to be caused directly or indirectly
by the Aircraft or by any inadequacy thereof or deficiency or defect therein or by any other circumstance in connection therewith;

 

		(ii)	the use, operation or performance of the Aircraft or any risks relating thereto;

 

		(iii)	any interruption of service, loss of business or anticipated profits or any other
direct, indirect or consequential loss or damage; or

 

		(iv)	the delivery, operation, servicing, maintenance, repair, improvement or replacement
of the Aircraft.

 

Waiver

 

		24.2	The Lessee hereby waives, as between itself and the Protected Parties:

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

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		(a)	all its rights in respect of any condition, warranty or representation, express or implied, on the part
of the Protected Parties; and

 

		(b)	all claims against the Protected Parties, however and whenever arising

 

in each case, in respect of
or out of any of the matters referred to in Clause 23 (Disclaimer) and save as expressly stated in this Agreement.

 

Confirmation

 

		24.3	The Lessee confirms that it is fully aware of the provisions of this Clause 24
and acknowledges that the Rent and other amounts payable under this Agreement have been calculated based on its provisions.

 

		25	Assignment and Transfer

 

Benefit of Agreement

 

		25.1	This Agreement shall be binding on and inure to the benefit
of the Parties and their respective successors and permitted transferees and assignees.

 

Lessee Transfer

 

REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

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REDACTED *

 

 

 

 

 

 

 

 

Transfer of rights and obligations by Lessor

 

REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

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REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

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REDACTED *

 

 

 

 

 

 

 

 

 

 

Lessee Co-operation

 

		25.6	The Lessee agrees to:

 

		(a)	co-operate with all reasonable requests by the Lessor, the Owner and, if applicable,
the Financiers in connection with any Lessor Transfer or Security Transfer; and

 

		(b)	subject to, in the case of a Lessor Transfer, each of the conditions set out in
Clause 25.3 (Transfer of rights and obligations by Lessor) being satisfied and, in the case of a Security Transfer, each of the
conditions set out in Clause 25.5 (Transfer of rights and obligations by Lessor) being satisfied, execute and deliver to the Lessor
any documents which are reasonably required in connection with any Lessor Transfer or Security Transfer.

 

No Restriction

 

		25.7	Nothing in this Clause 25 shall impose any conditions ore restrictions on the
Lessor’s rights following termination of the leasing of the Aircraft due to an Event of Default pursuant to Clause 21 (Remedies).

 

		26	Miscellaneous

 

Notices

 

		26.1	All notices under or in connection with this Agreement will unless otherwise stated
be given in writing by letter or e-mail. Any consent or permission from the Lessor must be in writing. Any notice will be deemed to have
been delivered as follows:

 

		(a)	if the notice is by letter, it will be effective when it is delivered;

 

		(b)	if the notice is by e-mail, when the email message is sent, provided that the
message is in legible form and no message is received by the sender indicating that such message has not been received by or delivered
to the intended recipient.

 

The current address, e-mail address and phone numbers
of the Lessor and the Lessee are in Part B of Schedule 7 (Reporting & notices) and may only be amended by notice in writing.

 

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Language

 

		26.2	All notices and documents to be given under this Agreement must be in English.
If they are not in English, they must be given with a certified English translation. If there is any difference between the English version
of this Agreement and any version in any other language, the English version will apply.

 

Rights

 

		26.3	The rights of both Parties under this Agreement may be used as often as each Party
considers appropriate, are cumulative and apply in addition to its rights under any law.

 

		26.4	Any Party only loses any of its rights if it specifically waives them in writing.
If any of the Parties decides not to use any of its rights or delays in using such rights, that does not mean it cannot exercise such
rights at a future date.

 

Severability

 

		26.5	If a provision of this Agreement is or becomes illegal, invalid or cannot be enforced,
in any jurisdiction that will not affect:

 

		(a)	the legality, validity or enforceability in that jurisdiction of any of the other provisions of this Agreement;
or

 

		(b)	the legality, validity or enforceability in any other jurisdiction of that or any other provision of
this Agreement.

 

Expenses

 

		26.6	Except as expressly provided in this Agreement, each Party shall bear its own
fees, costs and expenses in connection with the preparation, negotiation and completion of this Agreement and the other Transaction Documents
(including the fees and expenses of its own legal, tax or other advisors).

 

		26.7	Any fees, costs and expenses arising pursuant to amendments to this Agreement or
the other Transaction Documents requested by the Lessor or the Lessee shall be borne by the relevant Party requesting such amendments
or as otherwise mutually agreed.

 

The whole agreement

 

		26.8	This Agreement and the other Transaction Documents is the whole agreement between
the Lessor and the Lessee for leasing the Aircraft and replaces all previous agreements. This Agreement can only be amended in writing
signed by both Parties.

 

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Counterparts

 

		26.9	Any Transaction Document may be executed in any number of counterparts and by the
Parties on separate counterparts. Each counterpart shall constitute an original of the relevant Transaction Document, but together the
counterparts shall constitute one document.

 

Set-off

 

		26.10	At any time following the occurrence of an Event of Default which is continuing,
the Lessor may set-off any debt owed by the Lessee under the Transaction Documents against any debt the Lessor owes the Lessee under the
Transaction Documents and the Other Transaction Documents. This can happen in any currency even if the debts are owed in different currencies.
If the debts are in different currencies, the Lessor may convert either debt at the market rate of exchange available in London or New
York. If the amount of a debt is unknown, the Lessor may estimate the amount. Any difference between the estimated debt and the actual
debt will be paid by either the Lessor or the Lessee, as appropriate, when the amount becomes known.

 

Lease manager

 

		26.11	If the Lessor notifies the Lessee that it has appointed a Servicer as its agent
to act on its behalf under this Agreement generally, then the Lessor agrees that until the earlier of (i) the termination of this Agreement
and (ii) written notification to the Lessee from the Lessor to the contrary, the Lessee shall, without enquiry, be entitled to and shall
communicate with and deal with such Servicer with respect to all matters relating to this Agreement (including as to the performance of
obligations hereunder) and the Aircraft as if communicating with and dealing with the Lessor. However, except as provided in this Agreement,
such Servicer’s appointment to act as lease manager shall not in any way diminish any of the Lessee’s rights under this Agreement or render
its obligations or liabilities under this Agreement more onerous.

 

Delegation

 

		26.12	The Lessor may delegate to any other person or persons all or any of the rights,
powers or discretions vested in it by this Agreement and any such delegation may be made upon such terms and conditions as the Lessor
in its absolute discretion thinks fit. The Lessor shall remain primarily liable for the performance of such obligations notwithstanding
such delegation.

 

Further Assurances

 

		26.13	Each Party shall, and shall use all reasonable endeavours to procure that third
parties shall, execute and sign such documents and do such acts and things as any other Party shall reasonably request in order to carry
out the intended purpose of this Agreement or to establish, perfect, preserve or enforce that Party’s rights under this Agreement. Unless
otherwise agreed in this Agreement, the reasonable out of pocket expenses
incurred by a Party pursuant to this Clause 26.13 shall be borne by the Party which makes a request hereunder.

 

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Amendments

 

		26.14	The terms of this Agreement are only capable of amendment with the written consent of the Parties and
any such amendment will be binding on all Parties.

 

		27	Law

 

Law

 

		27.1	This Agreement and any non-contractual obligations arising from or in connection
with it are governed by and shall be construed in accordance with English law.

 

Jurisdiction

 

		27.2	The courts of England shall have jurisdiction to settle any disputes arising out
of or in connection with this Agreement and any non-contractual obligations arising out of or in connection with this Agreement, except
that during the pendency of the Chapter 11 Cases, the Bankruptcy Court shall have exclusive jurisdiction over any disputes. For such purposes
each Party irrevocably submits to the jurisdiction of the English courts and the Bankruptcy Court and waives any objection to the exercise
of such jurisdiction.

 

Courts

 

		27.3	Each Party agrees that:

 

		(a)	following the closing of the Chapter 11 Cases, it will not object to the courts of England being used
for any disputes regarding this Agreement; and

 

		(b)	a judgment or order of a court of England regarding this Agreement is final and binding and can be
enforced elsewhere in the world, subject to applicable laws.

 

Lessor’s Rights

 

		27.4	Notwithstanding Clause 27.2 (Jurisdiction) above and provided the Chapter
11 Cases have been closed:

 

		(a)	the Lessor may commence proceedings:

 

		(i)	in any other court of competent jurisdiction; and

 

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		(ii)	concurrently in more than one jurisdiction. Each of the Lessor and the Lessee
irrevocably submits to the jurisdiction of any such court and waives any objection to the exercise of such jurisdiction; and

 

		(b)	Notwithstanding Clause 27.2 (Jurisdiction) above and provided that the Chapter
11 Cases have been closed, the Lessee may commence proceedings: (i) in any other court of competent jurisdiction; and (ii) concurrently
in more than one jurisdiction, in relation to any breach of the Lessor’s covenant of quiet enjoyment contained in Clause 8.1 (Quiet
enjoyment) or the Security Trustee’s quiet enjoyment covenant contained in any Security Trustee’s quiet enjoyment letter. Each of
the Lessor and the Lessee irrevocably submits to the jurisdiction of any such court and waives any objection to the exercise of such jurisdiction.

 

		27.5	Notwithstanding Clause 27.2 (Jurisdiction) above and provided that the
Chapter 11 Cases have been closed, provided further that no Event of Default has occurred, the Lessee may commence proceedings: (a) in
any other court of competent jurisdiction; and (b) concurrently in more than one jurisdiction, in relation to any undisputed breach of
(i) the Lessor’s covenant of quiet enjoyment contained in Clause 8.1 (Quiet enjoyment) or (ii) the Security Trustee’s quiet enjoyment
covenant contained in any Security Trustee’s quiet enjoyment letter and in such circumstances, the Lessor and the Lessee each irrevocably
submits to the jurisdiction of any such court and waives any objection to the exercise of such jurisdiction.

 

Process Agent

 

		27.6	The Lessee appoints the London office of LATAM Airlines Group S.A., currently
located at Room 2038, Second Floor, D’Albiac House. Cromer Road, Heathrow Airport, London, TW6 1SD, England (marked for the attention
of: Gonzalo Garcia) as its agent for service of process in England to be served with court documents relating to this Agreement. The Lessee
must maintain a valid agent for receipt of process in England from the date of this Agreement until the Expiry Date and may not change
the identity of such agent without giving prior notice to the Lessor.

 

		27.7	The Lessee agrees that if its process agent does not notify the Lessee about any
court documents served on it, this will not affect the proceedings concerned.

 

		27.8	The Lessee agrees that court documents can be served on it by faxing, posting or
hand delivering a copy to its process agent at the address above.

 

		27.9	The Lessor appoints Holland & Knight (UK) LLP, currently located at Leaf 27C,
Tower 42, 25 Old Broad Street, London EC2N 1HQ, as its process agent in England to be served with court documents relating to this Agreement.
The Lessor must maintain a valid agent for receipt of process in England from the date of this Agreement until the Expiry Date and may
not change the identity of such agent without giving prior notice to the Lessee.

 

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		27.10	The Lessor agrees that if its process agent does not notify the Lessor about any
court documents served on it, this will not affect the proceedings concerned.

 

		27.11	The Lessor agrees that court documents can be served on it by faxing, posting
or hand delivering a copy to its process agent at the address above.

 

Waiver of Sovereign Immunity

 

		27.12	The Lessee irrevocably and unconditionally:

 

		(a)	agrees that if the Lessor brings legal proceedings against it or its assets in
relation to this Agreement or any other Transaction Document no immunity from such legal proceedings (which will be deemed to include
without limitation, suit, attachment prior to judgment, other attachment, the obtaining of judgment, execution or other enforcement) will
be claimed by or on behalf of itself or with respect to its assets;

 

		(b)	waives any such right of immunity which it or its assets now has or may in the
future acquire; and

 

		(c)	consents generally in respect of any such proceedings to the giving of any relief
or the issue of any process in connection with such proceedings including, without limitation, the making, enforcement or execution against
any property whatsoever (irrespective of its use or intended use) of any order or judgment which may be made or given in such proceedings.

 

Cape Town Convention Immunity

 

		27.13	Each Party hereby waives any immunity from suit, from the jurisdiction of any court
or from any legal or judicial process or remedy and, without limiting the generality of the foregoing, each Party hereby waives in accordance
with Article 57 of the Cape Town Convention any sovereign immunity from jurisdiction of the courts specified in Clause 27.2 (Jurisdiction)
or relating to the enforcement of rights and interests relating to the Aircraft, the Airframe and/or any Engine.

 

		28	Confidentiality

 

		28.1	The Lessor and the Lessee agree that the Transaction Documents are to be kept confidential.
Neither Party (including its respective officers, directors, agents and advisors) will disclose any information from or in connection
with the Transaction Documents without the consent of the other which consent shall not be unreasonably withheld or delayed, except for:

 

		(a)	disclosures made by the Lessor to actual or potential assignees and transferees who satisfy the
                                                               assignment and transfer criteria in Clause 25.3 (Transfer by Lessor) or Clause 25.4 (Security Transfer by Lessor) (as
                                                               applicable), financiers, investors, direct or indirect shareholders and/or rating agencies or to their respective professional
                                                               advisors, provided that, in each case, such persons have entered into
a confidentiality agreement with the Lessor or are subject to professional obligations to maintain such confidentiality;

 

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		(b)	disclosures made by either Party to its professional advisers (including lawyers),
agents, or as may be required by Applicable Law, regulatory bodies, auditors or similar;

 

		(c)	disclosures to any export credit agency, who may further disclose to the extent
required to do so by Applicable Law;

 

		(d)	disclosure made by the Lessor to its Affiliates; and

 

		(e)	disclosures made by the Lessee to its Affiliates.

 

		(f)	disclosures made by Lessee under its obligations as a debtor under the Chapter 11 Cases including
                                                               (i) to the Official Committee of Unsecured Creditors appointed in the Chapter 11 Cases on a professional eyes’ only basis (ii)
                                                               the agents under that certain Super-Priority Debtor-in-Possession Term Loan Agreement on a confidential basis and (iii) the Ad Hoc Group of LATAM
Bondholders in the Chapter 11 Cases on a professional eyes’ only basis.

 

		28.2	The Parties will not be precluded in any manner or in any way from providing,
arranging or participating in any financing for, providing advisory or other services to third parties in, or acting as principal in,
transactions which may involve the other Party; provided that such does not disclose any confidential information in connection therewith.

 

		29	Third Party Rights

 

The Parties do not intend that
any term of this Agreement shall be enforceable solely by virtue of the Contracts (Rights of Third Parties) Act 1999 (the Act)
by any person who is not a party to this Agreement, provided that each Indemnitee may enforce its rights under this Agreement in accordance
with the terms of the Act. The Parties may rescind, vary, waive, release, assign, novate or otherwise dispose of all or any of their respective
rights or obligations under this Agreement without the consent of any person who is not a party to this Agreement.

 

THIS AGREEMENT has been entered into on the date
shown at the beginning of this Agreement.

 

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Schedule 1

 

Definitions
and Interpretation

 

Part
A

 

Definitions

 

Actual Location means Victorville, California, United
States of America

 

Affiliate in relation to any person means any
person directly or indirectly controlling, controlled by or under common control with that person

 

 

Agreed Value

 

REDACTED *

 

 

Aircraft means the aircraft
described in Schedule 2 (Aircraft Particulars) (and includes a separate reference to all Engines, Parts, the APU and the Landing
Gear and Aircraft Documents except where it would not make sense to interpret the reference to Aircraft in that way)

 

Aircraft Documents means,
whether in paper, photographic, digital, electronic or other medium, (i) the manuals and records identified in the attachments to the
Technical Acceptance Certificate hereto and as set out in Schedule 5 (Aircraft Documents) and all other records and documentation
pertaining to the Aircraft and delivered with the Aircraft on the Delivery Date (including all documents of delivery of the Aircraft from
the Airframe Manufacturer) and (ii) all other records and documentation generated during the Lease Period that are related to any maintenance,
inspections, repair, alterations, modifications or additions accomplished during the Lease Period with respect to the Aircraft

 

AMM means the Aircraft Maintenance Manual

 

Airframe means the Aircraft, excluding the Engines
and the Aircraft Documents

 

Airframe 12-Year Check means
the airframe 12 year check which shall include the completion of the 12 year structural tasks, system and zonal tasks and all lesser due
tasks and checks in accordance with the then current revision of the Maintenance Programme

 

Airframe Reserve Rate has
the meaning set forth in Schedule 6 (End of Lease Maintenance Payment Adjustments)

 

Airframe Manufacturer means The Boeing Company

 

Airframe Warranties means
the package of airframe warranties specified in the Airframe Warranties Agreement

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

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Airframe
Warranties Agreement means the agreement entered into or to be entered into, between the Lessor, the Lessee, the Owner, the Airframe
Manufacturer and (if applicable) the Security Trustee in relation to the Airframe Warranties

 

Airworthiness
Directive or AD means each airworthiness directive issued by any of the Aviation Authority, EASA or the FAA, specifying conditions,
limitations, modifications, inspections or corrective actions to be taken in respect of the Aircraft

 

Anti-Corruption Laws means
the US Foreign Corrupt Practices Act of 1977, as amended, and any other anti-bribery or anti-corruption law or regulation in any jurisdiction
applicable, in the case of the Lessor, to the Lessor and in the case of the Lessee, to the Lessee and any Permitted Sublessee, the Financiers
or the Aircraft

 

Anti-Money Laundering Laws
means those money laundering statutes in any jurisdiction applicable, in the case of the Lessor, to the Lessor and in the case of
the Lessee, to the Lessee (including, but not limited to, Law 19.913) and the Lessor, any Permitted Sublessee, the Financiers or the Aircraft,
the rules and regulations thereunder and any applicable related or similar rules, regulations or guidelines issued, administered or enforced
by any governmental or regulatory agency

 

	Applicable Law	REDACTED*	

 

 

 

 

 

Approval Order has the meaning
given to such term in Part A of paragraph 5(b) of Schedule 3

 

Approved
Maintenance Performer means (a) for all major checks, repairs and maintenance (including any C Check, any shop visit for an Engine
or the APU, any Landing Gear Overhaul or the overhaul of any serialized components) and all Major Modifications, any maintenance facility
approved by (i) the local Aviation Authority and (ii) either EASA or the FAA or (b) for all lower level checks, repairs and maintenance,
any maintenance facility approved by the Aviation Authority which, provided Lessee has the requisite licenses and approvals, may be Lessee

 

Approved Non-OEM Part

 

REDACTED *

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

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REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

APU means the auxiliary
power unit installed in the Airframe on the Delivery Date until replaced in accordance with this Agreement and includes any such replacement
unit

 

APU Operating Hour means each
hour or part of an hour during which the APU is operated

 

APU Power Section Refurbishment
means, with respect to the APU, a level of work where, at a minimum, complete disassembly of the power section and load compressor
so as to achieve “zero- time” status on power section and load compressor, all in accordance to the Manufacturer’s then current
heavy repair and full gas path overhaul criteria

 

APU Reserve Rate has the
meaning set forth in Schedule 6 (End of Lease Maintenance Payment Adjustments)

 

Assignment of Insurances means
the assignment of insurances entered into, or to be entered into as the context may require, between the Lessee as assignor and the Lessor
as assignee

 

Authorisation means an
authorisation, consent, approval, resolution, licence, permit, exemption, filing, notarisation or registration

 

Aviation Authority means
each of the authorities which, under the Applicable Law of the State of Registration may from time to time control or supervise civil
aviation in the State of Registration or exercise jurisdiction over matters relating to the Aircraft

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

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Aviation Authority Letter
means a letter (in a form which will be accepted by the Aviation Authority) from the Lessee or, if applicable, if the Aircraft is
subleased pursuant to a Permitted Sublease, the Permitted Sublessee, addressed to the Aviation Authority, pursuant to which the Lessee
or, if applicable, if the Aircraft is subleased pursuant to a Permitted Sublease, the Permitted Sublessee authorises the Lessor to obtain
from the Aviation Authority a general statement of account in relation to charges incurred by the Lessee or, if applicable, if the Aircraft
is subleased pursuant to a Permitted Sublease, the Permitted Sublessee in respect of all aircraft (including the Aircraft) operated by
the Lessee or, if applicable, if the Aircraft is subleased pursuant to a Permitted Sublease, the Permitted Sublessee under a lease agreement
with the Lessor

 

Back-to-Birth Traceability
means in respect of any Life Limited Part, original documentary evidence (or a certified true copy of such original documentary evidence)
specifying the part number and the unique serial number of such Life Limited Part, and providing a detailed full operational history record
having the following:

 

		(a)	the original delivery document (or a certified true copy of such original delivery
document) where original delivery document means (x) for a part delivered new as a spare part, the manufacturer’s airworthiness document
(FAA 8130-3 or EASA Form 1) showing the part number and serial number, (y) for a part delivered new installed on an assembly, the manufacturer’s
assembly listing showing part number, serial number, assembly serial number and where relevant the as-delivered model and thrust rating;

 

		(b)	a certified removal/installation transaction history detailing an unbroken record
of the hours and cycles elapsed at each relevant thrust rating (for engine Life Limited Parts) or at each certified take-off weight (for
landing gears, if applicable) from new up to current; and

 

		(c)	if provided from a person other than the OEM, a statement from the last operator
to the effect that such part was never involved in any major incident or accident and, to the extent available, was never subjected to
over temperature extreme stress condition or immersion in salt water and was not obtained from any government or military source

 

Bankruptcy Court means the United
States Bankruptcy Court for the Southern District of New York

 

	Beneficiary	REDACTED *

 

Broker’s Letter of Undertaking
means an undertaking from the Insurance Broker in the form as recognised by the Lloyds Insurance Broker’s Committee or otherwise acceptable
to the Lessor (acting reasonably)

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

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Business Day means:

 

		(a)	a day (other than a Saturday or Sunday) on which business of the nature required by this Agreement is
carried out in New York, United States of America and Santiago, Chile; and

 

		(b)	where used in relation to payments, a day (other than a Saturday or Sunday) on which banks are open
for business in New York, United States of America and Santiago, Chile

 

Cabin Reconfiguration has the
meaning given to such term in Clause 14.18 (Cabin Reconfiguration)

 

Cape Town Convention means:

 

		(a)	the Convention on International Interests in Mobile Equipment (the Convention); and

 

		(b)	the Protocol to the Convention on Matters Specific to Aircraft Equipment (the Protocol),

 

both signed in Cape Town, South
Africa on 16 November 2001 and references to any Articles of the Cape Town Convention refer to the English language version of the Consolidated
Text

 

C Check
means a maintenance check on the Airframe under the Approved Maintenance Program consisting of full and complete zonal, systems and
structural check and any other maintenance and inspection tasks that are a part of such checks (including “A” checks and lesser
checks) and resultant repairs, all in accordance with the Approved Maintenance Program, or if the Approved Maintenance Program permits
such structural check to be performed in phases, the performance of such phases shall constitute a complete zonal, systems and structural
block “C” check

 

Chapter 11 Cases mean
those certain proceedings under chapter 11 of Title 11 of the United States Code, 11 U.S.C. §101 et. Seq., of the Lessee and its
affiliated debtors and debtors-in-possession, filed on 26 May 2020, 7 July 2020, and 9 July 2020 in the Bankruptcy Court

 

Chapter 11 Events means
the Chapter 11 Proceedings together with the events and circumstances in existence as of the date of this Agreement which affect or relate
to the financial condition of the Lessee or any of its affiliated debtors

 

Chapter 11 Proceedings means
the Chapter 11 Cases together with the related parallel and ancillary proceedings in Chile, Colombia and the Cayman Islands

 

Compliance Authority means
the certifying authorities of the State of Design (as such expression is defined in Annex 8 of the Convention on International Civil Aviation)
in respect of the Aircraft, which means any of the Airframe, any Engine or Part Manufacturer or such other agency or authority as shall
succeed its functions

 

Condition Confirmation Certificate
means, if applicable with respect to an Engine, the condition confirmation certificate substantially in the form of Schedule 14 (Form
of Condition Confirmation Certificate) to be entered into between the Lessee and the Lessor upon completion of the shop visit for
such Engine contemplated by Schedule 4 (Delivery Condition)

 

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Consolidated Text means
the consolidated text of the Convention and the Protocol attached to Resolution No. 1 of the Final Act of the diplomatic conference held
to adopt the Convention and the Protocol

 

	Cut-Off Date	REDACTED *

 

 

Cycle means (i) with respect
to the Airframe, one take-off and landing of the Aircraft, (ii) with respect to an Engine or Part, one take-off and landing of the aircraft
on which the relevant Engine or Part is installed (each “touch and go” will be one Cycle) and (iii) with respect to the APU,
one APU start and shut down

 

 

	Damage Notification Threshold	REDACTED*

 

 

Default means an Event
of Default or any event which, with the giving of notice, lapse of time, determination of materiality or fulfilment of any other applicable
condition, may constitute an Event of Default

 

 

	Default Rate	REDACTED*

 

Delivery means the delivery
of the Aircraft to and its acceptance by the Lessee under this Agreement, as evidenced by execution of the Final Acceptance Certificate
by the Lessee

 

Delivery Date means the date
on which Delivery takes place

 

Delivery Ferry Flight has the
meaning set forth in Schedule 4 (Delivery Procedure)

 

Delivery Location means
the facilities of the Lessee in Santiago, Chile or such other location agreed by the Lessor and the Lessee

 

Delivery Procedure means
the inspection and other procedures to verify that the Aircraft is in the delivery condition, as described in Schedule 4 (Delivery
Procedure)

 

DER Repair means a repair
which has been approved for use on the Aircraft by a person or organization designated as an engineering representative of the FAA or
EASA having approval authority appropriate to the work being approved

 

Deregistration Power of Attorney
means a duly executed irrevocable deregistration power of attorney from the Lessee and, if applicable, any Permitted Sublessee, in
favour of the Lessor and, if applicable, the Security Trustee, in form and substance reasonably satisfactory to the Lessor and, if applicable,
the Security Trustee

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per
Amended Standing Order Regarding Redaction Dated February 2, 2021.

 

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DGAC Chile means the Dirección
General de Aeronáutica Civil de Chile, or any Government Entity that is the successor thereto

 

Dollars or $ means the lawful currency of
the United States of America

 

EASA means the European
Aviation Safety Agency or any other organisation or authority that, under the laws of the European Union, shall from time to time have
jurisdiction over, amongst other things, aircraft airworthiness standards for the European Union

 

End of Lease Maintenance Payment
Adjustments means the payments payable by the Lessee to the Lessor, or the payments payable by the Lessor to the Lessee, as the case
may be, pursuant to Schedule 6 (End of Lease Maintenance Payment Adjustments)

 

Engine means:

 

		(a)	each engine and its constituent Engine Modules (whether or not installed on the
Airframe) as specified in the Technical Acceptance Certificate; or

 

		(b)	any Replacement Engine which has replaced an engine referred to in paragraph (a)
above or this paragraph (b) in accordance with this Agreement, title to which has vested in the Owner

 

Engine Life Limited Parts
or Engine LLPs means those Parts, defined by the Engine Manufacturer in the engine manual, or by EASA or the FAA or the Aviation
Authority through Airworthiness Directives, requiring retirement and subsequent replacement on a mandatory basis prior to or upon the
expiration of the Engine Manufacturer’s certified life, such life being expressed in terms of Cycles, Flight Hours, landings or calendar
time

 

Engine Life Limited Part Replacement
or Engine LLP Replacement means when replaced, replacement Engine LLPs shall have at least equivalent life as the replaced
Engine LLP

 

Engine
Maintenance Programme or EMP means the latest version of the Engine Manufacturer’s generic engine management programme or workscope
planning guide applicable to the Engines

 

Engine Manufacturer means Rolls-Royce plc

 

Engine Modules means any
of the seven major modules of an Engine, namely: (1) the High Pressure Compressor Module (the HPC), (2) the High Pressure Turbine
Module (the HPT), (3) the Combustor,

(4)       Fan
Booster/Low Pressure Compressor (Fan Booster/LPC), (5) Low Pressure Turbine (LPT), (6) Gearbox, and (7) Intermediate Pressure
Compressor (IPC) each of which is comprised of sub- modules, as set forth in the guidelines OEM planning guide

 

Engine
Performance Restoration Shop Visit means the disassembly, inspection and, at a minimum, full refurbishment of the core modules in
accordance with the Engine Maintenance Programme

 

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Engine Replacement Period means
the period starting twenty-four (24) months prior to the Redelivery Date and ending on the Redelivery Date

 

Engine Warranties means
a package of engine warranties specified in the Engine Warranties Agreement

 

Engine Warranties Agreement
means the agreement entered into or to be entered into, between the Lessor, the Lessee, the Owner, the Engine Manufacturer and (if
applicable) the Security Trustee in relation to the Engine Warranties

 

Equipment Change means
any modification, alteration, addition to or removal from the Aircraft during the Lease Period

 

Event of Default means an event
specified in Clause 20 (Events of Default)

 

Expiry Date means:

 

		(a)	the Scheduled Expiry Date;

 

		(b)	the Total Loss Payment Date; or

 

		(c)	the date on which the leasing of the Aircraft to the Lessee is expressed to terminate under this Agreement,

 

whichever is the earliest or,
if the Redelivery of the Aircraft has been extended pursuant to Clause 19.2(a) in order to rectify any non-compliance with the Redelivery
Condition, the actual Redelivery Date

 

FAA means the Federal Aviation
Administration of the United States of America and any successor thereof

 

Financier means any person
or persons through which the Lessor or the Owner may from time to time finance or refinance its interest in the Aircraft and/or for whose
benefit security over, or rights relating to, the Aircraft and/or any Transaction Document may be granted (including by way of a declaration
of trust) by the Lessor or the Owner or at its request, and includes the Security Trustee as well as any underwriter, placement agent
or syndication agent, any export credit agency and any other person identified as a “Financier” for the purposes of this Agreement,
as may be notified by the Lessor to the Lessee from time to time

 

Financing Documents means
each present and/or future document which is from time to time related to any financing of the Aircraft (including for such purpose any
mortgage or leasing arrangements whether or not constituting a financing and any documents ancillary thereto)

 

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Final
Acceptance Certificate means the acceptance certificate to be entered into between the Lessee and the Lessor after the Delivery Ferry
Flight on the Delivery Date substantially in the form of Schedule 12 (Form of Final Acceptance Certificate)

 

Final Inspection has the
meaning given to such term in Section 1(a) of Part A of Schedule 9 (Redelivery Procedure)

 

	Fixed Rent	REDACTED*

 

 

 

 

Fixed Rent Commencement Date
means the day immediately after, as applicable, (i) the PBH Expiry Date as may be extended pursuant to, and in accordance with the terms
of, Clause 6.2 or (ii) the end of the PBH Extension Period

 

Fixed
Rent Payment Date means the first day of each Fixed Rent Period, provided that if a Fixed Rent Period does not constitute the duration
of the entire applicable month, the Fixed Rent for such period shall be prorated on the basis of a 30 day month

 

Fixed Rent Period means
each of the consecutive monthly periods throughout the period commencing on and including the Fixed Rent Commencement Date and ending
on the Expiry Date

 

Flight Hour means each
hour or part thereof (rounded up to two decimal places) elapsing from the moment at which the wheels of the Aircraft, or in the case of
any Part or Engine temporarily installed on another aircraft, leave the ground on take-off until the wheels touch the ground on landing
following such flight

 

Government Entity means:

 

		(a)	any national government, political subdivision thereof, or local jurisdiction therein;

 

		(b)	any instrumentality, board, commission, court, or agency of any thereof, however
constituted; and

 

		(c)	any association, organization, or institution of which any of the above is a member
or to whose jurisdiction any thereof is subject or in whose activities any of the above is a participant

 

Gross Negligence means
any intentional action or decision of a person which is taken or made by such person with reckless disregard for the consequences of such
action or decision

 

Habitual Base means: (i)
Brazil; (ii) Chile; (iii) the principal operations base of any Permitted Sublessee provided such base is not in a country or countries
which is a Prohibited Jurisdiction; or (iv) subject to the prior written consent of the Lessor acting reasonably, any other country or
countries not being a Prohibited Jurisdiction
in which the Aircraft is for the time being habitually based (and for this purpose, the Aircraft shall be “habitually based”
at the location from which the Aircraft departs on a flight (or a series of flights) and to which it customarily returns and remains between
such flights (or series of flights))

 

 

 

 

*All text marked “*REDACTED” is Redacted
Per Amended Standing Order Regarding Redaction Dated February 2, 2021.

 

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IATA means the International Air Transport Association

 

IDERA means an irrevocable
deregistration and export request authorisation suitable for filing with the relevant Aviation Authority, substantially in the form referred
to in the Cape Town Convention or otherwise in form and substance reasonably satisfactory to the Lessor

 

IFRS means the international financial reporting
standards

 

Indemnitee means the Lessor,
the Owner, the Financiers, the Servicer, the Lessor Guarantor and any and each of their respective shareholders, subsidiaries, affiliates,
partners, directors, employees, agents, members and officers

 

Insurance means the insurance
cover (including any reinsurance) to be taken out under Clause 18 (Insurance) and Schedule 8 (Insurance Requirements)

 

Insurance Broker means
Marsh Ltd or Willis Limited London or any other insurance broker with insurers of recognised standing in London or New York who normally
participate in aviation insurances in the leading international insurance markets and led by internationally recognised and reputable
underwriters approved by the Lessor (acting reasonably) for the purposes of this Agreement

 

International Registry
means the international registration facilities established for the purpose of the Convention

 

Invoice Date has the meaning set forth in Clause
6.1

 

Landing Gear means the landing gear assembly of
the Aircraft, excluding any wheels, tyres or brakes

 

Landing Gear Overhaul means
an overhaul of a Landing Gear assembly in accordance with the Manufacturer’s repair manual that restores such Landing Gear to a “zero
time since overhaul” condition in accordance with the Manufacturer’s repair manual and is performed in accordance with the Manufacturer’s
overhaul specifications and operating criteria (excluding any rotable components such as wheels, tyres, brakes and consumable items)

 

Landing Gear Reserve Rate
has the meaning set forth in Schedule 6 (End of Lease Maintenance Payment Adjustments)

 

Lease Period means the period commencing on the
Delivery Date and ending on the Expiry Date

 

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Leasing Affiliate means,
in each case, so long as they are an Affiliate of the Lessee at the time of the relevant event:

 

		(a)	LATAM-Airlines Ecuador S.A.;

 

		(b)	Aerovías de Integración Regional S.A. (doing business as LAN Colombia);

 

		(c)	LAN Argentina S.A.;

 

		(d)	LATAM Airlines Perú S.A.;

 

		(e)	Transporte Aéreo S.A. (doing business as LAN Express);

 

		(f)	TAM Linhas Aéreas S.A. and its affiliates;

 

		(g)	ABSA Aerolinhas Brasileiras S.A.; and

 

		(h)	any other company that currently is or in the future becomes an affiliate of the Lessee, because:

 

		(i)	it is controlled, directly or indirectly, by the Lessee;

 

		(ii)	more than half of its issued share capital is beneficially owned, directly or indirectly, by the Lessee;
or

 

		(iii)	it is a subsidiary of another Leasing Affiliate.

 

For the purposes of this definition,
the Lessee shall be deemed to “control” another entity if: (1) the Lessee possesses, directly or indirectly, the power to
direct the management or policies of such other entity either through: (i) the ownership of voting rights; (ii) control of the board (including
control of its composition) of the other entity; or (iii) indirect control of (i) and (ii); or (2) such other entity would, under relevant
accounting principles, be consolidated or required to be consolidated for accounting purposes with the Lessee

 

Lessee Illegality Event means
a change which makes it (or will make it) unlawful in any jurisdiction for the Lessee to fulfil or perform any of the covenants or obligations
expressed to be assumed by it under this Agreement or any other Transaction Document it is a party

 

Lessor Event

 

REDACTED *

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

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REDACTED *

 

provided that, in each case,
all the conditions precedent to the obligations of the Lessor hereunder and under the other Transaction Documents have been satisfied
and the Aircraft has been tendered for delivery by the Lessor in accordance with the terms of the Transaction Documents in the Delivery
Condition (and in circumstances where the Lessee has confirmed it is prepared to accept delivery of the Aircraft hereunder)

 

	Lessor Guarantor	REDACTED*

 

	Lessor Guarantee	REDACTED*

 

 

 

 

Lessor Illegality Event means
a change which makes it (or will make it) unlawful in any jurisdiction for the Lessor to give effect to any of its obligations expressed
to be assumed by it under this Agreement or any other Transaction Document it is a party, save where a Lessee Illegality Event has occurred
and is continuing

 

Lessor Lien means any
Security Interest over or in respect of the Aircraft or any Transaction Document:

 

		(a)	created by the Lessor or the Owner or through the Lessor or the Owner, including
in connection with the financing of the Aircraft;

 

		(b)	created by or through any Financier;

 

		(c)	resulting from acts of or claims against the Lessor or the Owner or any Indemnitee
not arising as a result of the operation of the Aircraft or the transactions contemplated by or permitted under this Agreement (other
than as a consequence of the occurrence of an Event of Default) or to any act or omission of the Lessee;

 

		(d)	created as part of a Security Transfer; or

 

		(e)	resulting from a Lessor Tax

 

Lessor’s Cabin Reconfiguration
Contribution has the meaning given to such term in Clause 14.19(a) (Cabin Reconfiguration)

 

Lessor Tax means Taxes:

 

		(a)	imposed as a direct result of activities of such Tax Indemnitee in the jurisdiction
imposing the liability unrelated to such Tax Indemnitee’s dealings with the Lessee or to the transactions contemplated by this Agreement or the
operation or return of the Aircraft by the Lessee;

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

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		(b)	imposed on the net income, profits or gains of such Tax Indemnitee by any Government
Entity in their respective state of tax residence, other than:

 

		(i)	Taxes payable by such Tax Indemnitee as a result of such Tax Indemnitee being
required to include in its gross income any amount attributable to any improvement, alternation, substitution or addition to the Aircraft;

 

		(ii)	Taxes which are imposed solely by reason of the presence, registration, use or
operation of the Aircraft in any jurisdiction;

 

		(iii)	Taxes which are imposed by reason of or consequent upon any Default or any breach
by the Lessee of, or any failure by the Lessee to perform any of its obligations under, or any misrepresentation made by the Lessee in,
this Agreement; or

 

		(iv)	Taxes which result solely from the situs of organisation, any place of business
or any activity of the Lessee or any other person having use, possession or custody of the Aircraft, the Airframe, any Engine or any Part
in the jurisdiction imposing the Tax;

 

		(c)	imposed solely as a result of an event occurring after the Expiry Date which is
not related to such Tax Indemnitee’s dealings with the Lessee or the transactions contemplated by this Agreement or the operation or return
of the Aircraft by the Lessee;

 

		(d)	which such Tax Indemnitee has and which would have arisen even if the Transaction
Documents had not been entered into;

 

		(e)	which are caused by a breach or default by the Lessor of any of its express obligations
under a Transaction Document which does not result from, or is contributed by, any act or omission of any person other than the Lessor,
other than in the case of a breach or default by the Lessor of Clause 8.1(Quiet enjoyment) which does not result from any act or
omission of any person (including, without limitation, the Lessee or the Permitted Sublessee) other than the Lessor or any person claiming
by or through the Lessor;

 

		(f)	which are caused by such Tax Indemnitee’s fraud, wilful misconduct or Gross Negligence;

 

		(g)	which are caused by any express representation or warranty given by such Tax Indemnitee
in any Transaction Document not being true and correct at the date when, or when deemed to have been, given or made which does
not result from any act or omission of any person other than such Tax Indemnitee;

 

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		(h)	which are expressly agreed to be borne by such Tax Indemnitee pursuant to the
terms of this Agreement or any other Transaction Document;

 

		(i)	which arise solely as a result of any act or event or occurrence which occurs
before Delivery;

 

		(j)	which arise as a result of any financing arrangement with respect to the Aircraft
including any amounts payable under or in connection with the Financing Documents;

 

		(k)	imposed on or payable by a Tax Indemnitee that would not have been imposed or
payable but for the existence of any head lease arrangements put in place voluntarily by a Tax Indemnitee and not following the request
of the Lessee or a restructuring of this Agreement undertaken with the agreement of the Lessee;

 

		(l)	which arise as a result of any sale, assignment, transfer or other disposition
by a Tax Indemnitee of the Aircraft or any interest therein unless such sale, assignment, transfer or other disposition occurs in connection
with, or arises following, a Total Loss, or relates to the replacement of any Engine or Part as contemplated by this Agreement; or

 

		(m)	which constitute penalties, additions to Tax, fines or interest on Taxes which
would not have arisen but for the reasonably avoidable delay or failure by a Tax Indemnitee in the filing of any tax returns, statements
or other documentation with any relevant Tax authority:

 

		(i)	where such Tax Indemnitee was aware that such filing was required or legally possible;
or

 

		(ii)	following any reasonable written request by the Lessee to make such a filing, (any
such request containing sufficient detail to enable such Tax Indemnitee to comply with the terms thereof), except to the extent that:

 

		(A)	such delay or failure has been requested by the Lessee or caused by any delay
or failure by the Lessee to provide any information or documents which such Tax Indemnitee may reasonably request;

 

		(B)	such delay or failure is caused by any circumstances outside such Tax Indemnitee’s
reasonable control; or

 

		(C)	such Tax Indemnitee in its sole discretion (acting in good faith) determines that
the relevant filing would prejudice the tax position or business affairs of such Tax Indemnitee or would be illegal or contrary
to any directive or policy of any governmental or taxation authority

 

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Lessor Transfer has the meaning given to such term
in Clause 25.3

 

Life Limited Parts or LLPs
means those Parts, defined by the Manufacturer or by EASA, the FAA or the Aviation Authority through Airworthiness Directives, requiring
retirement and subsequent replacement on a mandatory basis prior to, or upon the expiration of, the Manufacturer’s certified life, such
life being expressed in terms of Cycles, Flight Hours, landings and calendar time

 

Loss means any cost, expense
(including the fees of professional advisers and out-of-pocket expense), financial liability, damage or monetary loss of any kind but
excluding Taxes

 

Loss Payee means the Lessor or, if the Lessor so
notifies the Lessee in writing, the Security Trustee

 

Maintenance Programme means
the maintenance programme of the Lessee or any Permitted Sublessee which for the Aircraft shall be generally based on the MPD and which
for any Engine not installed on the Aircraft shall be in accordance with the Engine Maintenance Programme. The Maintenance Programme shall
be approved the Aviation Authority

 

Mandatory Equipment Change
means an Equipment Change that is required by, or performed to comply with, an AD, Aviation Authority or EASA regulations or a Service
Bulletin required to be performed to comply with an AD or Aviation Authority regulations including any Equipment Change required pursuant
to Clause 14.12

 

Manufacturer means:

 

		(a)	in the case of the Airframe, the Airframe Manufacturer;

 

		(b)	in the case of the Engines, the Engine Manufacturer; and

 

		(c)	in the case of a Part, the original equipment manufacturer of such Part

 

Manufacturer Warranties means both of the Airframe
Warranties and the Engine Warranties

 

Material Default means
any event which, with the giving of notice, lapse of time, determination of materiality or fulfilment of any other applicable condition,
may constitute an Event of Default under Clauses 20.1(b) (Non-payment by the Lessee), 20.1(c) (Failure to Insure), 20.1(j)
(Insolvency) or 20.1(l) (Insolvency Proceedings)

 

MPD
or Maintenance Planning Document means the latest version of the maintenance planning document issued by the Manufacturer setting
out the maintenance tasks for the Aircraft and the thresholds and/or intervals at which such tasks should be completed.

 

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Non OEM
Part means a replacement Part which has not been either (a) manufactured by the Manufacturer or the Engine Manufacturer, as appropriate
or (b) approved and warranted in writing by the Manufacturer or the Engine Manufacturer, as appropriate.

 

Notice and Acknowledgement
means a notice and acknowledgement entered into, or to be entered into as the context may require, between any of the Lessor, the
Owner and the Security Trustee and the Lessee substantially in such form as may be reasonably required by the Lessor or the Security Trustee

 

OEM means the original equipment
manufacturer

 

OEM Part means a part that has
been manufactured by the same Manufacturer of the Part it replaces

 

Original Financial Statements
means the Lessee’s consolidated audited financial statements for its financial year ended 31 December 2020

 

	Other Agreement	REDACTED *	 
	 	 	 
	Other A321 Agreement	REDACTED *	 
	 	 	 
	Other A321 Aircraft	REDACTED *	 
	 	 	 
	Other B787 Agreement	REDACTED *	 
	 	 	 
	Other B787 Aircraft	REDACTED *	 

 

Owner
means the Lessor or such other person as the Lessor may notify to the Lessee as the owner of the Aircraft from time to time

 

Part means each component,
furnishing or part (other than a complete Engine or Engine Module) supplied with the Aircraft on the Delivery Date, in each case until
replaced in accordance with this Agreement and includes any such replacement, and all technical data (including historical, operational
and maintenance records related thereto)

 

Party means a party to this
Agreement

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

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Passenger
Convenience Item means seating and/or seating configuration, IFE, broadband (Wifi), and/or audio entertainment systems, galley provisions
(i.e. carts, coffee makers, water boilers, chillers, etc.), lavatory provisions and any other item, component, system or part which is
installed on the Aircraft solely for the convenience of the passenger

 

PBH Commencement Date means
the Delivery Date

 

	PBH Expiry Date	         REDACTED *	 

 

PBH Extension Period means,
if the Lessee exercises its right to extend the PBH Period pursuant to, and in accordance with the terms of, Clause 6.2, the period for
which the PBH Period is so extended

 

PBH Invoice has the meaning
set forth in Clause 6.1

 

PBH Period means the period
commencing on (and including) the PBH Commencement Date and ending on (and including), as applicable, (i) the PBH Expiry Date as may be
extended pursuant to, and in accordance with the terms of, Clause 6.2 or (ii) the end of the PBH Extension Period

 

	PBH Rent	REDACTED *	 

 

PBH Rent Payment Date has the meaning set forth in
Clause 6.1

 

PBH Rent Period means, during the PBH Period:

 

		(a)	in respect of the first PBH Rent Period, the period commencing on (and including)
the PBH Commencement Date and ending on the last day of that calendar month; and

 

		(b)	each subsequent PBH Rent Period shall commence on the first day of the calendar
month immediately following the previous PBH Rent Period and shall be of one calendar month’s duration, provided that the last PBH
Rent Period shall end on (and include) as applicable, (i) the PBH Expiry Date as may be extended pursuant to, and in accordance with the
terms of, Clause 6.2 or (ii) the end of the PBH Extension Period

 

Permitted Security Interest means:

 

		(a)	any lien for Taxes not assessed or, if assessed, not yet due and payable, or which
are being contested in good faith by appropriate proceedings;

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    85

     

    

 

		(b)	any lien of a repairer, carrier, hangar keeper, mechanic, material-man, carrier,
employee or other similar lien arising in the ordinary course of business by operation of law in respect of obligations which are not
overdue or are being contested in good faith by appropriate proceedings;

 

		(c)	but, in each case of (a) and (b) above, only if:

 

		(i)	adequate reserves have been provided by the Lessee for the payment of the Taxes
or obligations; and

 

		(ii)	such proceedings, or the continued existence of the lien, do not, in the reasonable
opinion of the Lessor, give rise to any likelihood of the sale, forfeiture or other loss of the Aircraft or any interest in the Aircraft
or of criminal liability on any Indemnitee;

 

		(d)	any Lessor Lien; and

 

		(e)	any Security Interest arising from any of the Financing Documents and the Transaction
Documents

 

Permitted Sublease has the meaning given to such
term in Clause 10.4 (Permitted Subleasing)

 

Permitted Sublessee means, at any time:

 

		(a)	any Leasing Affiliate; or

 

		(b)	any other solvent air carrier or air operator which is duly certified and holding
a current and valid air operator’s certificate allowing it to operate the Aircraft consented to in writing by the Lessor, acting
reasonably,

 

to whom the Aircraft may be sub-leased,
wet-leased or chartered or made the subject of any interchange agreement at such time by the Lessee in accordance with Clause 10.4 (Permitted
Subleasing)

 

Prime Rate means, on any
date that the same is to be determined the $ “prime rate” as published in the Wall Street Journal on such date

 

Prohibited Jurisdiction means
any jurisdiction which, at any relevant time, is subject to an embargo, sanction, export restriction or prohibition order (or any similar
order or directive) of:

 

		(a)	the United Nations Security Council;

 

		(b)	the European Union; or

 

		(c)	the United States of America;

 

and, in each case, which is applicable
to the Lessee, the Lessor or any Financier or the ownership, leasing, financing or operation of the Aircraft

 

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Prohibited Person means
any person with whom transactions are prohibited or restricted under the US sanctions administered by OFAC any other US Government sanction,
export or procurement laws or any other sanctions or other such restrictions on business dealings imposed by the European Union including
a person designated on any list of restricted entities, persons or organizations published by the US Government, the United Nations or
the European Union or any Member State thereof, including but not limited to:

 

		(a)	the OFAC Specially Designated Nationals and Blocked Persons List, the BIS Denied
Persons List, Entity List or Unverified List or the DDTC Debarred Parties List;

 

		(b)	the HM Treasury Consolidated List of Financial Sanctions Targets in the UK;

 

		(c)	the European Union Consolidated list of persons, groups and entities subject to EU
financial sanctions; and

 

		(d)	the Compendium of United Nations Security Council Sanctions Lists

 

Qualifying Event means any of
the following:

 

		(a)	the Airframe 12-Year Check;

 

		(b)	the replacement of one or more Engine Life Limited Parts;

 

		(c)	the APU Power Section Refurbishment; or

 

		(d)	the Landing Gear Overhaul

 

Qualifying Event Interval has
the meaning set forth in Schedule 6 (End of Lease Maintenance Payment Adjustments)

 

RAB means the Brazilian
Aeronautical Registry, or any Government Entity that is the successor thereto

 

Redelivery means the redelivery
of the Aircraft to the Lessor in compliance with the terms of this Agreement

 

Redelivery Acceptance Certificate
means the acceptance certificate to be entered into between the Lessee and the Lessor substantially in the form of Schedule 13 (Form
of Redelivery Acceptance Certificate)

 

Redelivery Condition means
the condition in which the Aircraft must be on Redelivery, as described in Part B of Schedule 9 (Redelivery)

 

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Redelivery Date means the date
on which the Lessor accepts the Aircraft for Redelivery

 

Redelivery Location means
the location of the C Check at Redelivery or such other location as the Lessor and the Lessee may agree

 

Redelivery Procedure means
the inspection and other procedures to verify that the Aircraft is in the Redelivery Condition, as described in Part A of Schedule 9 (Redelivery)

 

Removed Engine means an
Engine which has been removed from the Airframe and is to be replaced by a Replacement Engine in accordance with Clauses 11.6, 11.7 and
11.8 (Permanent replacement of Engines and Parts)

 

Rent means, collectively, the
PBH Rent and the Fixed Rent

 

	Replacement Engine	

REDACTED *

	 
	 	 	 
	 	 	 
	 	 	 
	Replacement Part	

REDACTED *

	 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

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REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

Requisitioning Period means
any period from the date when the Aircraft is requisitioned for use to the earlier of (i) the Redelivery of the Aircraft to the Lessee
and (ii) payment of the Agreed Value by the Lessee

 

Scheduled Delivery Date has
the meaning given to such term in Schedule 4 (Delivery Procedure)

 

	Scheduled Expiry Date	REDACTED *	 

 

Security Interest means
any mortgage, charge, assignment, pledge, conditional sale or encumbrance of any kind, lien, including tax liens, mechanics liens and
any liens that attach by operation of law, declaration of trust or any other arrangement which has the effect of giving another person
any security claim or interest

 

Security Transfer has the meaning
given to such term in Clause 25.4

 

Security Trustee means
the person or persons appointed as security agent, security trustee, collateral agent or similar representative for any of the Financiers
and any other person identified as a Security Trustee for the purposes of this Agreement, as notified by the Lessor to the Lessee
from time to time

 

Service Bulletins means
publications from any relevant Manufacturer recommending or requiring that the Aircraft be inspected or modified

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

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Servicer means any lease
manager which is reputable and experienced in commercial aircraft leasing and which is not nor any Affiliate or Subsidiary of such lease
manager is an airline or charter company in competition with the Lessee or any Leasing Affiliate, as may be notified by the Lessor to
the Lessee in writing as the Lessor’s lease manager from time to time

 

Spare Engine means the
spare engine in a technical condition consistent with Lessee’s other spare engines provided by the Engine Manufacturer to the Lessee
from time to time

 

State of Registration means
Chile or Brazil or (i) the state of registration of the Lessee or any Permitted Sublessee or (ii) such other country or state of registration
of the Aircraft in which the Aircraft is permitted to be registered in accordance with Clause 10.4 (Permitted subleasing)

 

STC has the meaning given to
such term in Clause 14.17 (Modifications)

 

Subsidiary means:

 

		(a)	in relation to any reference to accounts, any company whose accounts are consolidated
with the accounts of the Lessee in accordance with accounting principles generally accepted under accounting standards of Chile; or

 

		(b)	for any other purpose, an entity from time to time:

 

		(i)	of which another has direct or indirect control or owns directly or indirectly more
than fifty percent (50%) of the voting share capital; or

 

		(ii)	which is a direct or indirect subsidiary of another under the laws of the jurisdiction
of its incorporation

 

Subordination Agreement means
any subordination agreement entered into between the Permitted Sublessee, the Lessee and the Lessor in relation to a Permitted Sublease
in form and substance acceptable to the Lessor

 

Taxes means all present
and future taxes, levies, imposts, duties or charges of any nature whatsoever, and wheresoever imposed, including value added tax or any
similar tax and any franchise, transfer, sales, use, business, occupation, excise, personal property, real property, stamp, gross income,
personal property, fuel, leasing, occupational, turnover, excess profits, excise, gross receipts, franchise, registration, licence, corporation,
capital gains, export, import, customs income, levies, imposts, withholdings or other taxes or duties of any nature whatsoever (or any
other amount corresponding to any of the foregoing) now or hereafter imposed, levied, collected, withheld or assessed by any national
or regional taxing or fiscal authority or agency or other Government Entity, together with any penalties, additions to tax, fines or interest
thereon, and Tax and Taxation shall be construed accordingly

 

    90

     

    

 

Tax
Indemnitee means the Lessor, the Owner (if different from the Lessor) and the Beneficiary, individually and collectively, as the context
may require

 

Technical Acceptance Certificate
means the technical acceptance certificate to be entered into between the Lessee and the Lessor prior to the Delivery Ferry Flight
substantially in the form of Schedule 11 (Form of Technical Acceptance Certificate)

 

Third Party means a person
or entity that is not (a) a direct or indirect Affiliate of the Lessee or (b) a person or entity that owns more than a 5% equity stake
in the Lessee (or any Affiliate of Lessee) on the date hereof

 

Total Care Agreement means
a total care agreement, or an amendment thereto, as the case may be, covering the Engines, entered into between the Lessee and the Engine
Manufacturer

 

Total Loss means

 

		(a)	the actual, constructive, compromised, arranged or total loss of the Aircraft agreed
by insurers;

 

		(b)	if the Aircraft is destroyed, damaged beyond economic repair or becomes permanently
unfit for normal use for any reason (including any damage to the Aircraft or it being requisitioned for use where the insurers agree a
total loss settlement);

 

		(c)	if the Aircraft is requisitioned for title, confiscated, seized, detained, forfeited,
compulsorily purchased;

 

		(d)	if the Aircraft is requisitioned for hire for more than one hundred and twenty (120) days; or

 

		(e)	if the Aircraft is hi-jacked, stolen or disappears for ninety (90) days or longer

 

Total Loss Payment Date means
with respect to a Total Loss the earlier of:

 

		(a)	the first Business Day which falls on or after the date falling sixty (60) days
after the Total Loss happened; and

 

		(b)	the date the Insurance proceeds are received by the person entitled to such proceeds
under this Agreement for that Total Loss

 

Transaction Documents means
this Agreement, the Lessor Guarantee, the Aviation Authority Letter, the IDERA, the Engine Warranties Agreement, the Airframe Warranties
Agreement, the Notice and Acknowledgement, the Final Acceptance Certificate, the Technical Acceptance Certificate, the Deregistration
Power of Attorney, the Assignment of Insurances, any Subordination Agreement and any other document which is entered into by the Lessee
in connection with any of those agreements, as each of the same may be amended from time to time

 

Transfer has the meaning given
to such term in Clause 25.2

 

Twelve-Year
Check or 12-Year Check means the heavy airframe structural and zonal inspection of the Aircraft (and resulting repairs) including
a C Check, all MPD tasks having an interval of twelve years, and performed concurrently therewith such additional Flight Hour or Cycle
controlled MPD structural and zonal inspections

 

Voluntary Equipment Change
means an Equipment Change other than a Mandatory Equipment Change

 

    91

     

    

 

Part B

 

Interpretation

 

The following rules of interpretation apply throughout the
Agreement.

 

		1	Unless otherwise stated, a reference to:

 

		(a)	any Applicable Law includes any change or addition to it or replacement of it;

 

		(b)	month means a period starting on one day in a calendar month and ending
on the numerically corresponding day in the next calendar month, except that:

 

		(i)	if the numerically corresponding day is not a Business Day, that period shall
end on the next Business Day in that calendar month in which that period is to end if there is one, or if there is not, on the immediately
preceding Business Day; and

 

		(ii)	if there is no numerically corresponding day in the calendar month in which that
period is to end, that period shall end on the last Business Day in that calendar month;

 

		(c)	this Agreement or any other agreement or document includes any changes, replacements
or substitutions;

 

		(d)	indebtedness includes any obligation (whether incurred as principal or surety)
for the payment or repayment of money, whether present or future, actual or contingent;

 

		(e)	a person may, depending on the context, include an individual, any form of
corporate or business association or any state or form of governmental or official body, whether having a distinct legal identity or not;

 

		(f)	the Lessor, the Lessee or any other person includes their respective successors,
transferees and assignees; and

 

		(g)	includes, including, include or similar terms shall not be
construed as limiting and shall mean “including, without limitation”.

 

	2	The Convention and the Protocol shall be read and interpreted together as a single
instrument as required by Article 6(1) of the Convention.

 

	3	References to a provision of the Cape Town Convention will, unless it is specifically
stated to be a reference to a provision of the Convention or, as the case may be, the Protocol, be a reference, whether stated or not,
to the relevant provision of the Consolidated Text, and reference to any provision of the Consolidated Text shall include a reference
to the provision(s) of the Convention and/or the Protocol from which such provision is/are derived.

 

	4	The Clause headings and sub-headings are used in this Agreement only to make it easier
to read. They are not intended to affect its meaning.

 

	5	Certain technical terms used but not defined have the meaning given in Annex six
and eight of the Convention of International Civil Aviation in force from time to time.

 

	6	Any reference to this Agreement includes its Schedules.

 

    92

     

    

 

Schedule 2

 

Aircraft Particulars

 

	Manufacturer:	The Boeing Company
	 	 
	Model:	787-9
	 	 
	MSN:	38459
	 	 
	Registration:	As specified in the Technical Acceptance Certificate
	 	 
	Engine Model:	Rolls-Royce model Trent 1000-J
	 	 
	Engine Serial Numbers:	As
specified in the Technical Acceptance Certificate
	 	 
	Engine Thrust:	74,100 lbs
	 	 
	APU Model:	Hamilton Sundstrand
	 	 
	APU Serial Number:	As specified
in the Technical Acceptance Certificate
	 	 
	Landing Gear Serial Number:	As
specified in the Technical Acceptance Certificate
	 	 
	MTOW:	252,650 kg
	 	 
	Interior seating layout:	As
specified in the Technical Acceptance Certificate
	 	 
	Loose equipment:	As specified
in the Technical Acceptance Certificate
	 	 
	L.O.P.A.:	As specified in the Technical Acceptance Certificate
		

 

			

    93

     

    

 

REDACTED *

 

Conditions Precedent and
Conditions Subsequent

 

Part A

 

REDACTED *

 

REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    94

     

    

 

REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    95

     

    

 

REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    96

     

    

 

REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    97

     

    

 

REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    98

     

    

 

REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    99

     

    

 

REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    100

     

    

 

Part C

 

Lessee Conditions Subsequent

 

REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    101

     

    

 

Schedule
4

 

Delivery Procedure

 

REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    102

     

    

 

REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    103

     

    

 

REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    104

     

    

 

Schedule 5

 

Aircraft Documents

 

	A.	Certificates

 

A001 Certificate of Airworthiness

 

A002 Current Certificate of Registration

 

A003 C of
A for Export

 

A004 Noise Limitation Certificate (AFM page)

 

A005
Radio Station License

 

A006 Aircraft deregistration

 

A007 Burn Certificates - Cabin Interiors - as follows:

 

Certification of compliance with the fire blocking
requirements as outlined in FAR / JAR Part 25 including:

 

	●	Seat cushions*

 

	●	Back rest cushions*

 

	●	Dress covers*

 

	●	Carpets and Curtains

 

	●	Flight Attendant Seats

 

	●	Cockpit Observer’s Seats

 

	●	Galley Floor Covering

 

	●	Interior Surfaces (if refurbished)

 

	*	Including “in combination” burn certification

 

	B.	 	Aircraft Maintenance Status Summaries

 

B001 Certified current Time in Service (Flight Hours and
Cycles) and maintenance status

 

B002
Certified status of Airframe and Appliance Airworthiness Directives including method of compliance

 

B003 Certified status of Service Bulletins Incorporated

 

B004
Certified status of all non SB and Major Modifications/STC’s including acceptable State of Manufacture Certification

 

B005 Certified status of SSI

 

B006 Certified status of CPCP (if applicable)

 

B007 Certified status inventory of Hard Time Components
(Fitted listing)

 

    105

     

    

 

B008 Certified inventory of OC/CM Components (Fitted listing)

 

B009 Certified status of Check/Inspection History
and Current Status of Checks

 

B010 List of Deferred Maintenance Items (if applicable)

 

B011 List of Out of Phase Checks, Special Requirements,
Time Limited Repairs (if any)

 

B012 **Aircraft Accident and Incident Statement

 

B013 Structural repairs and damage Status (including
Dent and Buckle Chart)

 

B014 Certification Maintenance Requirements (CMR) item status

 

B015 Aircraft Flight Time Report / Aircraft Log Book

 

	C.	Aircraft Maintenance Records

 

C001 Technical Logs

 

C002 A Checks: Last complete cycle of A Checks (or
equivalent)

 

C003 C Checks: Last Complete cycle of C Checks (or equivalent)

 

C004 All Major Checks

 

C005 CPCP Tasks including DFP and finding reports

 

C006 Dirty Finger Print Certification (DFP) - AD’s
- DFP must reference AD and/or Applicable SB

 

C007 Dirty Finger Print Certification - SB’s

 

C008 Dirty Finger Print Certification - STC Documentation
and All other modifications

 

C009 Dirty Finger Print Certification All Structural repairs/structural damage

 

C010 Details of State of Manufacture
approval basis - All non SRM Structural repairs

 

C011 Certification Maintenance Requirement (CMR) Dirty Finger Prints

 

C012 Last Weighing Report including Schedule

 

C013 Last Balancing of All Control Surfaces (if applicable)

 

C014 Last Demonstration Flight Report

 

C015 Certified ETOPS compliance
report (if applicable)

 

C016 Certified last done/ next due MPD task listing

 

C017 NDT documentation such as x-ray and eddy current, etc.

 

	D.	Configuration Status

 

D001 Approved and certified LOPA

 

D002 Galley Drawings and Galley OHM

 

D003 Emergency Equipment Drawing/Listing

 

    106

     

    

 

D004 Loose Equipment Inventory

 

D005 Inventory Listing of Avionic Units installed

 

	E.	Aircraft Historical Records

 

E001 C of A (Export) from State of Manufacture

 

E002
Manufacturer’s AD Report

 

E003
Manufacturer’s Inspection Report, Initial Equipment list / Aircraft Readiness Log (or equivalent)

 

E004 Manufacturer’s repair/alteration report

 

E005
Manufacturer’s SB Report

 

E006 Aircraft Historical / Miscellaneous Log (or equivalent)

 

E007 Last Flight Data Recorder Read Out and Corrections

 

	F.	Engine Records

 

F001 Certified Statement on Status of Each Engine

 

F002 Certified Status of Engine Airworthiness Directives
including Method of Compliance

 

F003 Manufacturer’s Modifications and SB Status

 

F004 In house Modifications (if applicable)

 

F005
Certified LLP Listing and status

 

F006 Manufacturer Delivery Document

 

F007
Complete copies of all historical Engine/Module Shop Visit Reports including complete dirty finger print work packages

 

F008 LLP Status and Full and unbroken Traceability
to birth

 

F009 Condition Monitoring Report

 

F010 Engine Log Book/Master Records of Installation/Removals

 

F011 Last Borescope Report, including video if available

 

F012 Test Cell Run Report

 

F013 Last On Wing Ground
Run

 

F014 **Engine Accident & Incident Statement

 

F015 Approved ETOPS compliance report (if applicable)

 

F016 Type of Engine Oil Used

 

F017 Statement of Exceedences and corrective actions
per the maintenance manual during Term

 

F018 Power Rating Operation Statement (Cycles of operation e.g., B1, B2, C1, etc.)

 

    107

     

    

 

F019 Engine NDT documentation such as x-ray, eddy current,
etc.

 

	G.	APU

 

G001 Certified Statement on Status of APU

 

G002 Certified Status of APU
Airworthiness Directives including Method of Compliance

 

G003 Manufacturer’s Modifications and SB Status

 

G004 APU Log Book/Master Record of Installation/Removals

 

G005 Complete copies of all
APU Shop Visit Reports & Reason for Removal

 

G006 Statement of APU Hours to Aircraft Flying Hours (ratio)

 

G007 LLP Status and Full and
unbroken Traceability to birth (if applicable)

 

G008 Last On Wing/Health Check Data sheets (if applicable)

 

G009 Last Test Cell Run

 

G010 Approved ETOPS compliance
report (if applicable)

 

G011 Type of APU Oil Used

 

	H.	Component Records

 

H001 *Approved Release to Service Certification
for Hard Time Components

 

H002 *Approved Release to Service Certification for OC/CM Components

 

	I.	Landing Gears

 

I001
*Approved Release to Service Certification for major assemblies on each Landing Gear from last Overhaul

 

I002
Approved LLP Listings for each Landing Gear such that total life of each LLP can be appropriately demonstrated

 

I003 Last Overhaul Mini Pack

 

    108

     

    

 

 

	J.	Manuals

 

All Manufacturer’s Manuals identified below shall be provided
where not digitally accessible at MyBoeingfleet.com:

 

J001 Wiring
Diagram Manual

 

J002 Illustrated Parts Catalog

 

J003 Maintenance Manual

 

J004
Aircraft Schematics manual J005 Wire List and Hook up Charts

 

 

	K.	Miscellaneous

 

K001 Maintenance Programme Specifications (Lessee’s)

 

K002
Reference Material for Interpretation of Status Summaries, or cross reference for Part Numbers

 

	*	Items H001, H002 and I001 to be covered by EASA Form 1 or FAA Form 8130 3 with
EASA dual release and all other documentation in the possession of the Lessee, relating to the Airframe, Engines or any Parts to the extent
provided by the Lessee at time of the Aircraft arrival at the Actual Location and entry into the prolonged storage program

 

	**	At Redelivery, the non incident statements shall only cover
the operation of the Aircraft and/or components by the Lessee during the Lease Period or, if applicable, a shorter period in the case
of a replaced component.

 

    109

     

    

 

Schedule 6

 

End of Lease Maintenance Payment
Adjustments

 

REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    110

     

    

 

REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    111

     

    

 

REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    112

     

    

 

REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    113

     

    

 

Schedule 7 Reporting and
Notices

 

Part A

Form of Technical Report

 

 

 

    114

     

    

 

Part
B

 

Notices

 

	Lessee	 	 
	 	 	 
	Lessee:	 	LATAM Airlines Group S.A.
	 	 	 
	Address:	 	Avenida Américo Vespucio N° 901
	 	 	Edificio Corporativo LATAM 1-A
	 	 	Renca, Santiago
	 	 	Chile
	 	 	 
	Email:	 	audy.schenkl@latam.com
	 	 	 
	 	 	with a copy to:
	 	 	 
	 	 	Natalia.nobrega@latam.com
	 	 	 
	Attention:	 	SVP Fleet & Engines Contracts 
	 	 	 
	Lessor	 	 
	 	 	 
	Lessor:	 	UMB Bank, N.A., not in its individual
capacity but solely as owner trustee
	 	 	 
	Address:	 	6440 S. Millrock Drive, Suite 400
	 	 	 
	 	 	Salt Lake City, UT 84121
	 	 	 
	 	 	United States of America
	 	 	 
	Email:	 	corptrustutah@umb.com
	 	 	 
	Attention:	 	Corporate Trust Department
	 	 	 
	 	 	REDACTED *
	 	 	 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    115

     

    

 

Schedule 8

 

Insurance Requirements

REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    116

     

    

 

REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    117

     

    

 

REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    118

     

    

 

REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    119

     

    

 

REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    120

     

    

 

REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    121

     

    

 

Schedule 9

Part A – Redelivery Procedure

 

	1	Final Inspection

 

		(a)	REDACTED*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	Redacted Per Amended Standing Order Regarding Redaction Dated
February 2, 2021

 

    122

     

    

 

REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    123

     

    

 

Part B

 

Redelivery Condition

 

	1	The Aircraft will:

 

		(a)	REDACTED*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    124

     

    

 

REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    125

     

    

 

REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    126

     

    

 

REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    127

     

    

 

REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    128

     

    

 

REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    129

     

    

 

REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    130

     

    

 

Schedule 10

 

Subleasing
Requirements

 

REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    131

     

    

 

REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    132

     

    

 

REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    133

     

    

 

REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    134

     

    

 

REDACTED *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	*	All text marked “*REDACTED” is Redacted Per Amended Standing Order Regarding Redaction Dated
                                                         February 2, 2021.

 

    135

     

    

 

Schedule 11

Form of Technical Acceptance Certificate

 

This Technical Acceptance Certificate relates
to the operating lease agreement (the Agreement) dated [                         ] 2021 and made between [                         ] (the Lessor),
and LATAM Airlines Group S.A. (the Lessee) in respect of one (1) Boeing 787-9 aircraft with manufacturer’s serial
number [                         ], registration mark [                         ] and having two (2) Rolls-Royce model Trent 1000-J engines with serial numbers [•] and
[•] installed thereon (as more particularly described in the Agreement as the Aircraft).

 

PART A

 

		1	Aircraft Information

 

	Model	Boeing 787-9
	Manufacturer’s Serial Number	[                         ]
	Date of Manufacture	 
	MTOW	[l]
	MLW	[l]
	MZFW	[l]
	Current registration mark	[                         ]
	Airframe time since new (“TSN”)	[l]
	Airframe Cycles since new (“CSN”)	[l]
	Total Flight Hours Since Last Airframe 12-Year Check	 
	Total Cycles Since Last Airframe 12- Year Check	 
	Date of last Airframe 12-Year Check	 
	Total Flight Hours Since Last Airframe C Check	 
	Total Cycles Since Last Airframe C Check	 
	Date of last Airframe C Check	 

 

    136

     

    

 

		2	Engine Information

 

	 	Position 1	Position 2
	Model	 	 
	Manufacturer’s Serial Number	 	 
	Max. Take-off Thrust Rating	 	 
	Engine TSN	 	 
	Engine CSN	 	 
	Total Flight Hours since last Engine Performance Restoration Shop Visit	 	 
	Total Cycles since last Engine Performance Restoration Shop Visit	 	 
	Date of last Engine Performance Restoration Shop Visit	 	 
	Thrust Reverser Serial Number	
     

    LH OTBD
	
     

    LH INBD
	
     

    RH INBD
	
     

    RH OTBD

	 	 	 	 

 

    137

     

    

 

		3	APU Information

 

	APU Manufacturer	 
	Model	 

	Part Number	 
	Manufacturer’s Serial Number	 
	APU TSN	 
	APU CSN	 
	Total APU Hours since last APU Power Section Refurbishment	 
	Total APU Cycles since last APU Power Section Refurbishment	 
	Date of last APU Power Section Refurbishment	 

 

		4	Landing Gear Information

 

	 	Nose Landing ;

                                                                                Gear
	LH Main Landing 

Gear	RH Main Landing

 Gear
	Part Number	 	 	 
	Manufacturer’s Serial Number	 	 	 
	Landing Gear TSN	 	 	 
	Landing Gear CSN	 	 	 
	Total Flight Hours since last Landing Gear Overhaul	 	 	 
	Total Cycles since last Landing Gear Overhaul	 	 	 
	Date of last Landing Gear Overhaul	 	 	 

 

    138

     

    

 

		5	Aircraft Documents

 

As described in Annex 1 to this Technical Acceptance Certificate.

 

		6	Loose Equipment

 

As described in Annex 2 to this Technical Acceptance Certificate.

 

		7	L.O.P.A.

 

As described in Annex 3 to this Technical Acceptance Certificate.

 

		8	Fuel on Board:                    kgs.

 

PART B

 

Unless otherwise defined in this Technical Acceptance Certificate, capitalised words
and expressions used in this certificate shall have the same meanings as given to them in the Agreement.

	1	The Lessee acknowledges and confirms that on the [[•] day of [[•]] 2021
at Victorville, California, the Lessee has completed its inspection of the Aircraft and the Aircraft Documents (as per the Aircraft Documents
signed by the Lessee and the Lessor and detailed in Annex 1 to this Technical Acceptance Certificate).

 

	2	The Lessee confirms that it is satisfied that the Aircraft and the Aircraft Documents
meet all of the requirements necessary for the Lessee to technically accept the Aircraft and the Aircraft Documents under the Agreement.

 

	3	This Technical Acceptance Certificate may be executed by the parties hereto in
separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute
but one and the same instrument.

 

	4	This Technical Acceptance Certificate shall be governed by, and construed in accordance
with, the laws of England.

 

    139

     

    

 

Signed:

 

Name (capitals):

 

Title:

 

duly authorised for and on behalf of

 

LATAM AIRLINES GROUP S.A., as Lessee

 

We hereby acknowledge and accept the above

 

    140

     

    

 

Signed:

 

Name (capitals):

 

Title:

 

duly authorised for and on behalf of

 

[                         ],
as Lessor

 

    141

     

    

 

Annex 1

 

Aircraft Documents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    142

     

    

 

 

Annex 2

 

Loose Equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    143

     

    

 

Annex 3

 

L.O.P.A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    144

     

    

 

Schedule 12

Form of Final Acceptance Certificate

 

This Final Acceptance Certificate
relates to the operating lease agreement (the Agreement) dated [                          ] 2021 and made between [                          ] (the Lessor), and LATAM
Airlines Group S.A. (the Lessee) in respect of one (1) Boeing 787-9 aircraft with manufacturer’s serial number [                          ], registration
mark [                          ] and having two (2) Rolls-Royce model Trent 1000-J engines with serial numbers [•] and [•] installed thereon (as
more particularly described in the Agreement as the Aircraft).

 

PART A

 

		1	Aircraft Information

 

	Model	Boeing 787-9
	Manufacturer’s Serial Number	[                          ]
	Date of Manufacture	 
	MTOW	[l]
	MLW	[l]
	MZFW	[l]
	Current registration mark	[                          ]
	Airframe time since new (“TSN”)	[l]
	Airframe Cycles since new (“CSN”)	[l]
	Total Flight Hours Since Last Airframe 12-Year Check	 
	Total Cycles Since Last Airframe 12- Year Check	 
	Date of last Airframe 12-Year Check	 
	Total Flight Hours Since Last Airframe C Check	 
	Total Cycles Since Last Airframe C Check	 
	Date of last Airframe C Check	 

 

    145

     

    

 

		2	Engine Information

 

	 	Position 1	Position 2
	Model	 	 
	Manufacturer’s Serial Number	 	 
	Max. Take-off Thrust Rating	 	 
	Engine TSN	 	 
	Engine CSN	 	 
	Total Flight Hours since last Engine Performance Restoration Shop Visit	 	 
	Total Cycles since last Engine Performance Restoration Shop Visit	 	 
	Date of last Engine Performance Restoration Shop Visit	 	 
	Thrust Reverser Serial Number	
     

    LH OTBD
	
     

    LH INBD
	
     

    RH INBD
	
     

    RH OTBD

	 	 	 	 

 

    146

     

    

 

		3	APU Information

 

	APU Manufacturer	 
	Model	 
	Part Number	 
	Manufacturer’s Serial Number	 
	APU TSN	 
	APU CSN	 
	Total APU Hours since last APU Power Section Refurbishment	 
	Total APU Cycles since last APU Power Section Refurbishment	 
	Date of last APU Power Section Refurbishment	 

 

		4	Landing Gear Information

 

	 	Nose Landing 

Gear	LH Main Landing 

Gear	RH Main Landing 

Gear
	Part Number	 	 	 
	Manufacturer’s Serial Number	 	 	 
	Landing Gear TSN	 	 	 
	Landing Gear CSN	 	 	 
	Total Flight Hours since last Landing Gear Overhaul	 	 	 
	Total Cycles since last Landing Gear Overhaul	 	 	 
	Date of last Landing Gear Overhaul	 	 	 

 

    147

     

    

 

		5	Aircraft Documents

 

As described in Annex 1 to this Final Acceptance Certificate.

 

		6	Loose Equipment

 

As described in Annex 2 to this Final Acceptance Certificate.

 

		7	L.O.P.A.

 

As described in Annex 3 to this Final Acceptance Certificate.

 

		8	Fuel on Board:            kgs.

 

PART B

 

Unless otherwise defined in this Final Acceptance Certificate, capitalised words and
expressions used in this certificate shall have the same meanings as given to them in the Agreement.

		1	The Lessee acknowledges and confirms that the Aircraft has been delivered to the
Lessee together with its Aircraft Documents (as per the Aircraft Documents signed by the Lessee and the Lessor and detailed in Annex 1
to this Final Acceptance Certificate) on the [[•] day of [[•]] 2021. Delivery took place on that date at [[•] (state
Delivery Location)], at [•] hours.

 

		2	The Lessee confirms that it has had the opportunity to inspect the Aircraft and
that it is satisfied that the Aircraft meets all of the requirements necessary for it to accept Delivery of it and that the Lessor has
fully performed all of its obligations under the Agreement with respect to that Delivery. The Lessee acknowledges that the Aircraft has
been delivered to us “as-is where-is”.

 

		3	The Lessee acknowledges and agrees that execution and delivery of this Final Acceptance
Certificate is conclusive proof that the Lessee has examined and investigated the Aircraft, that the Aircraft and the Aircraft Documents
are satisfactory to the Lessee and that the Lessee has irrevocably and unconditionally accepted the Aircraft for lease under the Agreement
without any reservations or exceptions whatsoever.

 

		4	The Lessee confirms to the Lessor that, as at the time indicated above, being the
Delivery Date the Aircraft is accepted for all purposes of the Agreement.

 

		5	This Final Acceptance Certificate may be executed by the parties hereto in separate
counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but
one and the same instrument.

 

		6	This Final Acceptance Certificate shall be governed by, and construed in accordance
with, the laws of England.

 

    148

     

    

 

Signed:

 

Name (capitals):

 

Title:

 

duly authorised for and on behalf of

 

LATAM AIRLINES GROUP S.A., as Lessee

 

We hereby acknowledge and accept the above

Signed:

 

Name (capitals):

 

Title:

 

duly authorised for and on behalf of

 

[                  ],
as Lessor

 

    149

     

    

 

Annex 1

 

Aircraft Documents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    150

     

    

 

Annex 2

 

Loose Equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    151

     

    

 

Annex 3

 

L.O.P.A.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    152

     

    

 

Schedule 13

Form of Redelivery Acceptance Certificate

 

This Redelivery Acceptance Certificate relates
to the operating lease agreement (the Agreement) dated [                        
] 2021 and made between [                        
] (the Lessor), and LATAM Airlines Group S.A. (the Lessee) in respect of one (1) Boeing 787-9 aircraft with manufacturer’s
serial number [                         ], registration mark [                         ] and having two (2) Rolls-Royce model Trent 1000-J engines with serial numbers [•] and [•]
installed thereon (as more particularly described in the Agreement as the Aircraft).

 

PART A

 

		1	Aircraft Information

 

	Model	Boeing 787-9
	Manufacturer’s Serial Number	[                          ]
	Date of Manufacture	 
	MTOW	[l]
	MLW	[l]
	MZFW	[l]
	Current registration mark	[ ]
	Airframe time since new (“TSN”)	[l]
	Airframe Cycles since new (“CSN”)	[l]
	Total Flight Hours Since Last Airframe 12-Year Check	 
	Total Cycles Since Last Airframe 12- Year Check	 
	Date of last Airframe 12-Year Check	 
	Total Flight Hours Since Last Airframe C Check	 
	Total Cycles Since Last Airframe C Check	 

	Date of last Airframe C Check	 

 

    153

     

    

 

		2	Engine Information

 

	 	Position 1	Position 2
	Model	 	 
	Manufacturer’s Serial Number	 	 
	Max. Take-off Thrust Rating	 	 
	Engine TSN	 	 
	Engine CSN	 	 
	Total Flight Hours since last Engine Performance Restoration Shop Visit	 	 
	Total Cycles since last Engine Performance Restoration Shop Visit	 	 
	Date of last Engine Performance Restoration Shop Visit	 	 
	Thrust Reverser Serial Number	
     

    LH OTBD
	
     

    LH INBD
	
     

    RH INBD
	
     

    RH OTBD

	 	 	 	 

 

    154

     

    

 

		3	APU Information

 

	APU Manufacturer	 
	Model	 

	Part Number	 
	Manufacturer’s Serial Number	 
	APU TSN	 
	APU CSN	 
	Total APU Hours since last APU Power Section Refurbishment	 
	Total APU Cycles since last APU Power Section Refurbishment	 
	Date of last APU Power Section Refurbishment	 

 

		4	Landing Gear Information

 

	 	Nose Landing

                                                                                Gear
	LH Main Landing

                                                                                Gear
	RH Main Landing

                                                                                Gear

	Part Number	 	 	 
	Manufacturer’s Serial Number	 	 	 
	Landing Gear TSN	 	 	 
	Landing Gear CSN	 	 	 
	Total Flight Hours since last Landing Gear Overhaul	 	 	 
	Total Cycles since last Landing Gear Overhaul	 	 	 
	Date of last Landing Gear Overhaul	 	 	 

 

    155

     

    

 

		5	Aircraft Documents

 

As described in Annex 1 to this Redelivery Acceptance Certificate.

 

		6	Loose Equipment

 

As described in Annex 2 to this Redelivery Acceptance Certificate.

 

		7	L.O.P.A.

 

As described in Annex 3 to this Redelivery Acceptance Certificate.

 

		8	Fuel on Board:        kgs.

 

PART B

 

Unless otherwise defined in this Redelivery Acceptance Certificate, capitalised words
and expressions used in this certificate shall have the same meanings as given to them in the Agreement.

		1	The Lessor acknowledges and confirms that the Lessor has completed its redelivery
inspection of the Aircraft and the Aircraft Documents (as per the Aircraft Documents signed by the Lessee and the Lessor and detailed
in Annex 1 to this Redelivery Acceptance Certificate) and that the Lessor is satisfied with the condition of the Aircraft and the Aircraft
Documents and that the Aircraft has been redelivered to the Lessor together with its Aircraft Documents on the [[•] day of [[•]]
20[•]. Redelivery took place on that date at [[•] (state Redelivery Location)], at [•] hours.

 

		2	This Redelivery Acceptance Certificate may be executed by the parties hereto in
separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute
but one and the same instrument.

 

		3	This Redelivery Acceptance Certificate shall be governed by, and construed in
accordance with, the laws of England.

 

    156

     

    

 

Signed:

 

Name (capitals):

 

Title:

 

duly authorised for and on behalf of

 

[                         ],
as Lessor

 

We hereby acknowledge and accept the above

 

    157

     

    

 

Signed:

 

Name (capitals):

 

Title:

 

 

 

duly authorised for and on behalf of

 

LATAM AIRLINES GROUP S.A., as Lessee

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    158

     

    

 

Annex 1

Aircraft Documents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    159

     

    

 

 

 

Annex 2

 

Loose Equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    160

     

    

 

Annex 3

 

L.O.P.A.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

    161

     

    

 

Schedule 14

Form of Condition Confirmation Certificate

 

This Condition Confirmation Certificate relates
to the operating lease agreement (the Agreement) dated [                        
] 2021 and made between [                        
] (the Lessor), and LATAM Airlines Group S.A. (the Lessee) in respect of one (1) Boeing 787-9 aircraft with manufacturer’s
serial number [                         ], registration mark [                          ].

 

Pursuant to the Agreement, the Lessor
and the Lessee hereby acknowledge and agree that as of this         day of                         
, the Engine identified below is in the condition specified below.

 

		1	Engine Information

 

 

	Model	 
	Manufacturer’s Serial Number	 
	Max. Take-off Thrust Rating	 
	Engine TSN	 
	Engine CSN	 
	Total Flight Hours since last Engine Performance Restoration Shop Visit	 
	Total Cycles since last Engine Performance Restoration Shop Visit	 
	Date of last Engine Performance Restoration Shop Visit	 
	Thrust Reverser Serial Number	
     

    LH OTBD
	
     

    LH INBD

	LLP Status	See Attachment 1

 

		2	This Condition Confirmation Certificate may be executed by the parties hereto in
separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute
but one and the same instrument.

 

		3	This Condition Confirmation Certificate shall be governed by, and construed in
accordance with, the laws of England.

 

    162

     

    

 

Signed:

 

Name (capitals):

 

Title:

 

duly authorised for and on behalf of

 

[                         ],
as Lessor

 

We hereby acknowledge and accept the above

Signed:

 

Name (capitals):

 

Title:

 

 

 

duly authorised for and on behalf of

 

LATAM AIRLINES GROUP S.A., as Lessee

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    163

     

    

 

Annex 1

 

Engine LLP Disc
Sheet

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    164

     

    

 

SIGNATURE PAGE - LEASE AGREEMENT - MSN 38459

 

	SIGNED by	)	 
	 	 	 
	duly authorised for and	 )	 
	 	 	 
	on behalf of	 )	
	UMB BANK, N.A., not in its individual	 )	Marilee Sobieski 
	capacity
but solely in its capacity as owner	 	Vice President
	trustee of the MSN 38459 Trust	 	 
	 	 	 
	SIGNED by	 )	 
	 	 	 
	duly authorised for and 	 )	 
	 	 	 
	on behalf of	 )	 
	 	 	 
	LATAM AIRLINES GROUP S.A.	 )	 
	 	 	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    165

     

    

 

SIGNATURE PAGE - LEASE
AGREEMENT - MSN 38459

 

	SIGNED by	)	 
	 	 	 
	duly authorised for and	 )	 
	 	 	 
	on behalf of	 )	 
	 	 	 
	UMB BANK, N.A., not in its individual	 )
	capacity
but solely in its capacity as owner	 
	trustee of the MSN 38459 Trust	 	 
	 	 	 
	SIGNED by	 )	
	duly authorised for and 	 )	 
	 	 	 
	on behalf of	 )	ELVIRA VIAL
	 	 	Authorized Signatory
	LATAM AIRLINES GROUP S.A.	 )	 
	 	 	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

164

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