Common use of Put Options Clause in Contracts

Put Options. (a) FedEx hereby grants to American seven (7) options (the "Put Options" and each a "Put Option"), each of which shall give American the right to sell one Aircraft to FedEx on each of the Scheduled Delivery Dates set forth in the table in Section 2.02(c). Upon American's exercise of each Put Option, FedEx shall purchase one Aircraft on the terms and subject to the conditions set forth herein. (b) A Put Option will be exercisable as to an Aircraft by American giving to FedEx a Put Option Exercise on any date not later than the "Latest Exercise Date" as set forth in Section 2.02(c). (c) The latest date by which a Put Option may be exercised (each a "Latest Exercise Date"), the latest date by which a Designation for a Scheduled Delivery Date may be given, the Scheduled Delivery Dates for the Put Option Aircraft and the Purchase Price of each Put Option Aircraft are as set forth in the following table: LATEST LATEST SCHEDULED DELIVERY EXERCISE DESIGNATION DELIVERY PURCHASE NUMBER DATE DATE DATE PRICE ------ ------------ --------------- ------------ --------------- 13 15-Feb-00 $ 14 14-June-00 $ 15 11-Oct-00 $ 16 * * 14-Feb-01 $ * 17 12-June-01 $ 18 16-Oct-01 $ 19 12-Feb-02 $ (d) American and FedEx intend the exercise of the Put Options to be sequential and consistent with the schedule set forth above. If American fails to give FedEx a Put Option Exercise exercising a particular Put Option on or before the Latest Exercise Date for such Put Option, that Put Option will expire. If a Put Option expires, the remaining Put Options may be cancelled by FedEx giving to ____________________ *Blank space contained confidential information which has been filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.