Exhibit 10.3
--------------------------------------------------------------------------------
AMENDMENT NO. 1 TO PURCHASE AGREEMENT DCT-025/2003
--------------------------------------------------------------------------------
Amendment No. 1 to Purchase Agreement DCT-025/2003Page 1 of 6
This Amendment No. 1 to Purchase Agreement DCT-025/2003, dated as of July 8,
2005 ("Amendment 1") relates to the Purchase Agreement DCT-025/2003 ("Purchase
Agreement") between Embraer - Empresa Brasileira de Aeronautica S.A. ("Embraer")
and JetBlue Airways Corporation ("Buyer") dated June 9, 2003 as amended from
time to time (collectively referred to herein as "Agreement"). This Amendment 1
is between Embraer and Buyer, collectively referred to herein as the "Parties".
This Amendment 1 sets forth the further agreement between Embraer and Buyer
relative to, among other things, certain aircraft configuration changes and new
escalation indexes. All terms defined in the Purchase Agreement shall have the
same meaning when used herein and in case of any conflict between this Amendment
1 and the Purchase Agreement, this Amendment 1 shall control.
Now, therefore, for good and valuable consideration, which is hereby
acknowledged, Embraer and Buyer hereby agree as follows:
1. CHANGES IN THE AIRCRAFT CONFIGURATION
1.1. The following optional items shall be deleted from the Aircraft
configuration of all Aircraft in Attachment "A" to the Purchase
Agreement.
--------------------------------------------------------------------------------------
Optional removed
---------------------------------------------------------------------------------------------
a ***
---------------------------------------------------------------------------------------------
b ***
---------------------------------------------------------------------------------------------
c ***
---------------------------------------------------------------------------------------------
d ***
---------------------------------------------------------------------------------------------
1.2. The following optional items shall be included in the Aircraft
configuration of all Aircraft in Attachment "A" to the Purchase
Agreement.
--------------------------------------------------------------------------------------
Optional added
---------------------------------------------------------------------------------------------
e ***
---------------------------------------------------------------------------------------------
f ***
---------------------------------------------------------------------------------------------
g ***
---------------------------------------------------------------------------------------------
h ***
---------------------------------------------------------------------------------------------
i ***
---------------------------------------------------------------------------------------------
j ***
---------------------------------------------------------------------------------------------
k ***
---------------------------------------------------------------------------------------------
l ***
---------------------------------------------------------------------------------------------
m ***
---------------------------------------------------------------------------------------------
n ***
---------------------------------------------------------------------------------------------
o LiveTV System
---------------------------------------------------------------------------------------------
p Radome for LiveTV System
---------------------------------------------------------------------------------------------
q ***
---------------------------------------------------------------------------------------------
r ***
s ***
---------------------------------------------------------------------------------------------
--------------------
[***] Represents material which has been redacted and filed separately with the
Commission pursuant to a request for confidential treatment pursuant to Rule
24b-2 under the Securities Exchange Act of 1934, as amended.
--------------------------------------------------------------------------------
Amendment No. 1 to Purchase Agreement DCT-025/2003 Page 1 of 6
--------------------------------------------------------------------------------
AMENDMENT NO. 1 TO PURCHASE AGREEMENT DCT-025/2003
--------------------------------------------------------------------------------
1.2.1 With regards to item "e" in Section 1.2 above (***), the following
shall apply:
Embraer shall *** to be installed in the Aircraft according to the
following technical specification:
***
The functionalities of the *** shall be as follows:
***
1.2.2 With regards to item "k" in Section 1.2 above (***), the following
shall apply:
***
1.2.3 With regards to item "o" and "p" in Section 1.2 above (LiveTV System
and Radome for LiveTV System), the Parties hereby delete Article 2.3 of
Amendment "A" to the Purchase Agreement and replace it with the
following:
"2.3 LiveTV ENTERTAINMENT SYSTEM - BIE (Buyer Installed Equipment):
The technical activities and responsibilities for the development,
design, integration, tests, certification and installation of the
LiveTV Systems in the Aircraft ***.
The Parties shall use commercially reasonable efforts to have the
LiveTV system certified in the Aircraft by the time of the ***.
LiveTV System components that shall be provided by Buyer (BFE or BIE)
shall not be covered by any warranty or guarantee under the Purchase
Agreement or its attachments and Buyer hereby waives and shall make no
claims relating to such components and Embraer shall not be responsible
for ***. Embraer shall also not be responsible for any delay in
delivery of the Aircraft and ***. THE TERMS OF SECTION 7 OF ATTACHMENT
"C" TO THE
----------------
[***] Represents material which has been redacted and filed separately with the
Commission pursuant to a request for confidential treatment pursuant to Rule
24b-2 under the Securities Exchange Act of 1934, as amended.
--------------------------------------------------------------------------------
Amendment No. 1 to Purchase Agreement DCT-025/2003 Page 2 of 6
--------------------------------------------------------------------------------
AMENDMENT NO. 1 TO PURCHASE AGREEMENT DCT-025/2003
--------------------------------------------------------------------------------
PURCHASE AGREEMENT ARE HEREBY INCORPORATED BY REFERENCE WITH RESPECT
TO LIVETV SYSTEMS.
Buyer agrees to indemnify and hold harmless Embraer and Embraer's
officers, agents, employees and assignees from and against all
liabilities, damages, losses, judgments, claims and suits, including
costs and expenses incident thereto, which may be suffered by, accrued
against, be charged to or recoverable from Embraer and/or Embraer's
officers, agents, employees and assignees by reason of loss or damage
to property or by reason of injury or death of any person resulting
from or in any way connected with the LiveTV System, except for ***."
1.2.4 With regards to item "q" in Section 1.2 above (***), the following
shall apply:
***
1.2.5 With regards to item "r" in Section 1.2 above (***), the following
shall apply:
***
1.2.6 With regards to item "s" in Section 1.2 above (***), the following
shall apply:
***
2. SUBJECT
2.1 Article 2.1 of the Purchase Agreement shall be deleted and replaced as
follows:
2.1 Embraer shall sell and deliver and Buyer shall purchase and take
delivery of one hundred and one (101) newly manufactured Aircraft
("Firm Aircraft");
3. AIRCRAFT PRICES
3.1 Aircraft price for Firm Aircraft: Due to the changes in the Aircraft
configuration, Article 3.1 of the Purchase Agreement shall be deleted
and replaced as follows:
3.1 ***, Buyer agrees to pay Embraer in United States dollars, the per
unit Aircraft Basic Price of US$ ***
----------------------
[***] Represents material which has been redacted and filed separately with the
Commission pursuant to a request for confidential treatment pursuant to Rule
24b-2 under the Securities Exchange Act of 1934, as amended.
--------------------------------------------------------------------------------
Amendment No. 1 to Purchase Agreement DCT-025/2003 Page 3 of 6
--------------------------------------------------------------------------------
AMENDMENT NO. 1 TO PURCHASE AGREEMENT DCT-025/2003
--------------------------------------------------------------------------------
United States dollars***, Buyer agrees to pay Embraer in United States
dollars, the per unit Aircraft Basic Price of US$ *** United States
dollars***.
3.2 Aircraft price for Option Aircraft: Due to the changes in the Aircraft
configuration, Article 21.1 of the Purchase Agreement shall be deleted
and replaced as follows:
21.1 The unit basic price of the Option Aircraft (the "Option Aircraft
Basic Price") shall be US$ *** United States dollars***, provided that
the Option Aircraft is in the configuration described in Attachment
"A", otherwise adjustments shall be done for any additions and/or
deletions of equipment and/or provisioning as may be agreed to by Buyer
and Embraer from time to time.
4. DELIVERY
The Aircraft schedule delivery table in Article 5.1 of the Purchase
Agreement shall be deleted and replaced as follows:
-----------------------------------------------------------------------------------------------------
Firm Delivery Firm Delivery Firm Delivery Firm Delivery
Aircraft # Month Aircraft # Month Aircraft # Month Aircraft # Month
-----------------------------------------------------------------------------------------------------
1 ***-05 26 ***-06 51 ***-08 76 ***-09
-----------------------------------------------------------------------------------------------------
2 ***-05 27 ***-07 52 ***-08 77 ***-09
-----------------------------------------------------------------------------------------------------
3 ***-05 28 ***-07 53 ***-08 78 ***-09
-----------------------------------------------------------------------------------------------------
4 ***-05 29 ***-07 54 ***-08 79 ***-09
-----------------------------------------------------------------------------------------------------
5 ***-05 30 ***-07 55 ***-08 80 ***-09
-----------------------------------------------------------------------------------------------------
6 ***-05 31 ***-07 56 ***-08 81 ***-10
-----------------------------------------------------------------------------------------------------
7 ***-05 32 ***-07 57 ***-08 82 ***-10
-----------------------------------------------------------------------------------------------------
8 ***-05 33 ***-07 58 ***-08 83 ***-10
-----------------------------------------------------------------------------------------------------
9 ***-06 34 ***-07 59 ***-08 84 ***-10
-----------------------------------------------------------------------------------------------------
10 ***-06 35 ***-07 60 ***-08 85 ***-10
-----------------------------------------------------------------------------------------------------
11 ***-06 36 ***-07 61 ***-08 86 ***-10
-----------------------------------------------------------------------------------------------------
12 ***-06 37 ***-07 62 ***-08 87 ***-10
-----------------------------------------------------------------------------------------------------
13 ***-06 38 ***-07 63 ***-09 88 ***-10
-----------------------------------------------------------------------------------------------------
14 ***-06 39 ***-07 64 ***-09 89 ***-10
-----------------------------------------------------------------------------------------------------
15 ***-06 40 ***-07 65 ***-09 90 ***-10
-----------------------------------------------------------------------------------------------------
16 ***-06 41 ***-07 66 ***-09 91 ***-10
-----------------------------------------------------------------------------------------------------
17 ***-06 42 ***-07 67 ***-09 92 ***-10
-----------------------------------------------------------------------------------------------------
18 ***-06 43 ***-07 68 ***-09 93 ***-10
-----------------------------------------------------------------------------------------------------
19 ***-06 44 ***-07 69 ***-09 94 ***-10
-----------------------------------------------------------------------------------------------------
20 ***-06 45 ***-08 70 ***-09 95 ***-10
-----------------------------------------------------------------------------------------------------
21 ***-06 46 ***-08 71 ***-09 96 ***-10
-----------------------------------------------------------------------------------------------------
22 ***-06 47 ***-08 72 ***-09 97 ***-10
-----------------------------------------------------------------------------------------------------
23 ***-06 48 ***-08 73 ***-09 98 ***-10
-----------------------------------------------------------------------------------------------------
24 ***-06 49 ***-08 74 ***-09 99 ***-11
-----------------------------------------------------------------------------------------------------
----------------------
[***] Represents material which has been redacted and filed separately with the
Commission pursuant to a request for confidential treatment pursuant to Rule
24b-2 under the Securities Exchange Act of 1934, as amended.
--------------------------------------------------------------------------------
Amendment No. 1 to Purchase Agreement DCT-025/2003 Page 4 of 6
--------------------------------------------------------------------------------
AMENDMENT NO. 1 TO PURCHASE AGREEMENT DCT-025/2003
--------------------------------------------------------------------------------
25 ***-06 50 ***-08 75 ***-09 100 ***-11
-----------------------------------------------------------------------------------------------------
101 ***-11
-----------------------------------------------------------------------------------------------------
A new Article 5.4 shall be added at the end of Article 5 to the
Purchase Agreement as follows:
5.4 Firm Aircraft *** shall be the aircraft bearing serial number ***.
Buyer agrees that Firm Aircraft *** shall have *** by its Contractual
Delivery Date, and Buyer shall ***.
5. PERFORMANCE GUARANTEE
Due to the changes in the Aircraft configuration, Attachment "H"
(Performance and Weight Guarantee) of the Purchase Agreement shall be
deleted and replaced by a new Attachment "H" to this Amendment 1.
6. ***
***
7. CHANGES IN THE ESCALATION FORMULA
***
[Intentionally left in blank]
--------------------------------------------------------------------------------
Amendment No. 1 to Purchase Agreement DCT-025/2003 Page 5 of 6
--------------------------------------------------------------------------------
AMENDMENT NO. 1 TO PURCHASE AGREEMENT DCT-025/2003
--------------------------------------------------------------------------------
All other terms and conditions of the Purchase Agreement, which are not
specifically amended by this Amendment 1, shall remain in full force and effect
without any change.
IN WITNESS WHEREOF, Embraer and Buyer, by their duly authorized officers, have
entered into and executed this Amendment 1 to the Purchase Agreement to be
effective as of the date first written above.
Embraer - Empresa Brasileira JetBlue Airways Corporation
de Aeronautica S.A.
By : /s/ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ By : /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
-------------------------------- -------------------------
Name : ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ Name : ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
Title : Executive Vice President Title : Senior Vice President
Engineering and Development
By : /s/ ▇▇▇▇ ▇▇▇▇ ▇. ▇▇▇▇▇▇
--------------------------------
Name : ▇▇▇▇ ▇▇▇▇ ▇. ▇▇▇▇▇▇
Title : Director of Contracts
Airline Market
Date: July 8, 2005 Date: July 8, 2005
Place : Sao ▇▇▇▇ Des Campes, SP Place :
------------------------
Witness: /s/ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇ Witness :
-------------------------------- ------------------------
Name : ▇▇▇▇▇▇▇▇ ▇▇▇▇▇ Name :
------------------------
--------------------------------------------------------------------------------
Amendment No. 1 to Purchase Agreement DCT-025/2003 Page 6 of 6
--------------------------------------------------------------------------------
ATTACHMENT "D" - ESCALATION FORMULA
--------------------------------------------------------------------------------
***
--------------------
[***] Represents approximately two pages of material which has been redacted and
filed separately with the Commission pursuant to a request for confidential
treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as
amended.
--------------------------------------------------------------------------------
Attachment D to PA DCT-025/2003 Page 1 of 2
***
--------------------------------------------------------------------------------
ATTACHMENT "H" - PERFORMANCE AND WEIGHT GUARANTEE
--------------------------------------------------------------------------------
1. GUARANTEES
Embraer, subject to the conditions and limitations hereby expressed,
and considering the Aircraft EMBRAER 190 AR Version equipped with
Embraer furnished General Electric CF34-10E6 engines, guarantees that
each Aircraft on the relevant Actual Delivery Date shall comply with
the following performance:
1.1 TAKE-OFF
The FAA approved take-off field length at a gross weight at
the start of the ground roll of *** lb, on a standard day
(ISA), at a sea level altitude, zero wind, no obstacles, dry
runway, shall not be more than the guarantee value:
Guarantee: *** ft
The Aircraft will meet FAA approved minimum climb gradient for
one engine inoperative climb, after takeoff at sea level, at a
temperature of *** and with takeoff weight not less than the
guarantee value:
Guarantee: *** lb
1.2 LANDING
The FAA approved landing field length at a gross weight of ***
lb and at a sea level altitude, on a standard day (ISA), no
obstacles, shall not be more than the guarantee value:
Guarantee: *** ft
1.3 CRUISE SPECIFIC AIR RANGE
The nautical miles per pounds of fuel at Aircraft gross
weights below at the pressure altitudes below in ISA
conditions at a true Mach number below shall be:
Weight Altitude Mach Number Guarantee
*** lb *** ft *** *** NAM/lb
*** lb *** ft *** *** NAM/lb
1.4 SPEED
The level flight speed at a gross weight of *** lb, in a
standard day (ISA), at an altitude of *** ft and using not
more than maximum cruise thrust, shall not be less than the
guarantee value:
Nominal: *** KTAS
Guarantee: *** KTAS
1.5 WEIGHT GUARANTEES
--------------------
[***] Represents material which has been redacted and filed separately with the
Commission pursuant to a request for confidential treatment pursuant to Rule
24b-2 under the Securities Exchange Act of 1934, as amended.
--------------------------------------------------------------------------------
Attachment H to PA DCT-025/2003 Page 1 of 7
--------------------------------------------------------------------------------
ATTACHMENT "H" - PERFORMANCE AND WEIGHT GUARANTEE
--------------------------------------------------------------------------------
a. Maximum Take-Off Weight (MTOW): The Aircraft MTOW shall
not be less than *** lb.
b. Maximum Landing Weight (MLW): The Aircraft MLW shall not
be less than *** lb.
c. Maximum Zero Fuel Weight (MZFW): The Aircraft MZFW shall
not be less than *** lb.
d. The Aircraft Equipped Empty Weight (EEW), for Buyer
configuration, is guaranteed to be no greater than:
Nominal: *** lb
Tolerance: *** lb
Guarantee: *** lb
▇▇▇▇▇▇▇ ▇▇▇ ▇▇ - ▇▇ ▇▇▇▇▇▇▇ - ▇▇▇ ▇▇▇ ▇▇▇▇▇▇ (▇▇) WEIGHT (LB)
*** *** ***
*** *** ***
*** *** ***
*** *** ***
***
*** *** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***
-------------------------
[***] Represents material which has been redacted and filed separately with the
Commission pursuant to a request for confidential treatment pursuant to Rule
24b-2 under the Securities Exchange Act of 1934, as amended.
--------------------------------------------------------------------------------
Attachment H to PA DCT-025/2003 Page 2 of 7
--------------------------------------------------------------------------------
ATTACHMENT "H" - PERFORMANCE AND WEIGHT GUARANTEE
--------------------------------------------------------------------------------
*** *** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***
***
*** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***
***
*** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***
------------------------
[***] Represents material which has been redacted and filed separately with the
Commission pursuant to a request for confidential treatment pursuant to Rule
24b-2 under the Securities Exchange Act of 1934, as amended.
--------------------------------------------------------------------------------
Attachment H to PA DCT-025/2003 Page 3 of 7
--------------------------------------------------------------------------------
ATTACHMENT "H" - PERFORMANCE AND WEIGHT GUARANTEE
--------------------------------------------------------------------------------
1.7 RANGE GUARANTEE
The Aircraft shall be capable of carrying a fixed payload of
*** lb (equal to *** passengers at a weight of *** lb each
plus *** lb additional cargo), when operated under the
conditions defined hereafter, over a still air distance of
not less than:
Guarantee: *** nautical miles
a) A fixed Basic Operating Weight (BOW) of *** lb, as defined
in item 1.5.
b) ISA temperature conditions
c) The departure airport conditions are such as to allow the
required Take-Off Weight to be used without restrictions
d) The destination airport conditions are such as to allow
the required Landing Weight to be used without
restrictions
e) A fixed allowance of ***lb of fuel is considered for
engine start up and taxi-out at the departure airport
f) A fixed allowance of ***lb of fuel is considered for
take-off and climb to *** ft above sea level with
acceleration to initial climb speed
g) Climb from *** ft above the departure airport up to cruise
altitude using maximum climb thrust and cruise at a fixed
Mach number of *** at optimum flight level and descend to
*** ft above the destination airport are conducted in ISA
conditions. Climb is made at a speed schedule of *** KCAS
below *** ft, then ***KCAS or Mach ***, whichever is
slower. At the optimum flight level the aircraft
accelerates to ***. Descent is made at a speed schedule of
*** KCAS
h) Fixed allowance of *** lb of fuel and *** minutes of time
from *** ft above sea level at ISA are considered for
approach and landing at the destination airport
i) A fixed allowance of *** lb of fuel is considered for
taxi-in at the destination airport.
j) Trip fuel is defined as the cumulative fuel used for
take-off, climb, cruise, descent, approach and landing as
described in Subparagraphs (f), (g) and (h) above. Stage
distance is defined as the sum of the distances covered
during climb, cruise, descent, approach and landing as
described in Subparagraph (g) and (h) above.
k) At the end of approach and landing at the destination
airport a fixed quantity of *** lb of usable fuel remains
in the tanks. This represents the cumulative fuel required
for FAA reserves for:
[ ] *** minutes of continued cruise at cruise altitude at
long range cruise speed
[ ] diversion to an alternate airport over a still air
distance of *** nm.
1.8 ***
-------------------
[***] Represents material which has been redacted and filed separately with the
Commission pursuant to a request for confidential treatment pursuant to Rule
24b-2 under the Securities Exchange Act of 1934, as amended.
--------------------------------------------------------------------------------
Attachment H to PA DCT-025/2003 Page 4 of 7
--------------------------------------------------------------------------------
ATTACHMENT "H" - PERFORMANCE AND WEIGHT GUARANTEE
--------------------------------------------------------------------------------
***
2. AIRCRAFT CONFIGURATION
2.1 The guarantees stated above are based on the Aircraft
configuration as defined in the Technical Description
PTD-190/195-Rev.4, dated May 2003, plus specific Buyer
configuration options as defined at Attachment "A" to the
Purchase Agreement, (hereinafter referred to as the "Detail
Specification"). If necessary, appropriate adjustment to
this Aircraft Performance Guarantees shall be made for
changes in such Detail Specification (including but not
limited to Buyer requests for changes, Proposal of Major
Changes or any other changes mutually agreed upon between
the Buyer and Embraer) approved in writing by the Buyer and
Embraer. Such adjustments shall be accounted for by Embraer
in its evidence of compliance with the guarantees.
In the event a change is made to any law, governmental
regulation or requirement, or in the interpretation of any
such law, governmental regulation or requirement that
affects the certification basis for the Aircraft, and as a
result thereof, a change is made to the configuration and/or
the performance of the Aircraft in order to obtain
certification, the guarantees set forth in this Aircraft
Performance Guarantee shall be appropriately modified to
reflect any such change.
2.2 The performance guarantees of Article 1 of this Attachment
shall be adjusted by Embraer for the following in its
evidence of compliance with such guarantees:
a. Changes to the Detail Specification including Major
Changes or any other changes mutually agreed upon
between the Buyer and Embraer.
b. The difference between the weight allowances of
optional items listed in the Detail Specification and
the actual weights.
2.3 The performance guarantees of Article 1 of this Attachment
do not take into account any Aircraft drag penalty
associated to the installation of IFE (LiveTV) equipment,
such as antennas, connectors, etc. In the event that such
equipment are installed prior to the Aircraft delivery,
appropriate Aircraft drag adjustments shall be accounted for
by Embraer in its evidence of compliance with the
guarantees.
3. GUARANTEE CONDITIONS
3.1 All guaranteed performance data are based on the ICAO
International Standard Atmosphere (ISA) unless otherwise
specified. Altitudes are pressure altitudes. The FAA
regulations referred to in this Attachment are, unless
otherwise specified, the Certification Basis regulations
specified in the Aircraft Type Certificate Data Sheet.
------------------------
[***] Represents material which has been redacted and filed separately with the
Commission pursuant to a request for confidential treatment pursuant to Rule
24b-2 under the Securities Exchange Act of 1934, as amended.
--------------------------------------------------------------------------------
Attachment H to PA DCT-025/2003 Page 5 of 7
--------------------------------------------------------------------------------
ATTACHMENT "H" - PERFORMANCE AND WEIGHT GUARANTEE
--------------------------------------------------------------------------------
3.2 The takeoff and landing guarantees are based on hard
surface, level and dry runways with no wind or obstacles, no
clearway or stopway, and with automatic anti-skid operative
unless otherwise specified. The takeoff performance is based
on no engine bleed for air conditioning or thermal
anti-icing and the Auxiliary Power Unit (APU) turned off
unless otherwise specified. The improved climb performance
procedure will be used for takeoff as required. The landing
data is based on the use of automatic spoilers.
3.3 The cruise specific air range, speed and the climb, cruise
and descent portions of the mission guarantees include
allowances for normal electrical power extraction and normal
operation of the air conditioning system. Normal power
extraction shall be defined as not less than a 41 kW total
electrical and hydraulic loads. Normal operation of the air
conditioning system shall be defined as operation in the
automatic mode, with the temperature control set to maintain
a nominal cabin temperature of 70 (Degree)F, and all air
conditioning systems operating normally. This operation
nominally allows a maximum cabin pressure differential of
*** lb per square inch, with a nominal Aircraft cabin
ventilation rate of *** cu.ft per min at *** ft including
passenger cabin recirculation (nominal recirculation is
***%). The APU is turned off unless otherwise specified.
3.5 The cruise specific air range, speed and the climb, cruise,
and descent portions of the mission guarantees are based on
an Aircraft center of gravity location of ***% of the mean
aerodynamic chord.
3.6 Performance, where applicable, is based on a fuel Lower
Heating Value (LHV) of 18,580 BTU per pound and a fuel
density of 6.7 lb per U.S. gallon.
4. PARTIES' OBLIGATIONS ACCORDING TO THIS GUARANTEE
4.1 During the Aircraft acceptance to be performed by Buyer in
accordance with Article 7 of the Purchase Agreement, Buyer
shall check the Aircraft performance specified in Article 1
of this Attachment, ***.
4.2 Embraer's obligations in respect to the guarantees stated in
Article 1 of this Attachment are limited to Buyer's right
***, should it be reasonably verified that such Aircraft,
during the acceptance procedure specified in Article 7 of
the Purchase Agreement, cannot comply with the performances
guaranteed hereunder, after Embraer has had a reasonable
opportunity to cure such deficiencies in accordance with
Article 7 of the Purchase Agreement.
4.3 In case, during the above mentioned acceptance procedure, it
is proven that the Aircraft performance does not comply with
the performances
----------------------
[***] Represents material which has been redacted and filed separately with the
Commission pursuant to a request for confidential treatment pursuant to Rule
24b-2 under the Securities Exchange Act of 1934, as amended.
--------------------------------------------------------------------------------
Attachment H to PA DCT-025/2003 Page 6 of 7
--------------------------------------------------------------------------------
ATTACHMENT "H" - PERFORMANCE AND WEIGHT GUARANTEE
--------------------------------------------------------------------------------
specified in Article 1 of this Attachment, ***.
4.4 Upon acceptance of the Aircraft by Buyer, all obligations of
Embraer regarding the Aircraft performance guarantees shall
cease.
5. GUARANTEE COMPLIANCE
5.1 Compliance with the guarantees of Article 1 of this
Attachment shall be based on the conditions specified in
that article, the Aircraft configuration contained in
Attachment "A" to the Purchase Agreement and the guarantee
conditions of Article 3 above.
5.2 Compliance with the takeoff and landing performance
guarantees shall be based on the FAA approved Airplane
Flight Manual for the Aircraft.
5.3 Compliance with the cruise specific air range, speed, and
the climb, cruise and descent portions of the mission
guarantees shall be established by calculations based on the
comparison mentioned in Section 4.1 above.
5.4 The data derived from tests shall be adjusted as required by
conventional methods of correction, interpolation or
extrapolation in accordance with established engineering
practices to show compliance with the performance guarantee.
5.5 Compliance with the Equipped Empty Weight guarantee shall be
based on information in the appropriate approved weight and
balance manual, and associated document or report.
6. EXCLUSIVE GUARANTEES
6.1 The only performance guarantees applicable to the Aircraft
are those set forth in this document. The performance
guarantees set forth herein are established between Buyer
and Embraer and may not be transferred or assigned to
others, unless by previous written consent of Embraer.
6.2 THE GUARANTEES, OBLIGATIONS AND LIABILITIES OF EMBRAER, AND
REMEDIES OF BUYER SET FORTH IN THIS PERFORMANCE GUARANTEE
ARE EXCLUSIVE AND IN SUBSTITUTION FOR, AND BUYER HEREBY
WAIVES, RELEASES AND RENOUNCES, ALL OTHER RIGHTS, CLAIMS,
DAMAGES AND REMEDIES OF BUYER AGAINST EMBRAER OR ANY
ASSIGNED OF EMBRAER, EXPRESS OR IMPLIED, ARISING BY LAW OR
OTHERWISE, WITH RESPECT TO ANY ACHIEVED PERFORMANCE.
6.3 The terms and conditions of this performance guarantee do
not alter, modify or impair, in any way, the terms and
conditions of Attachment "C" (Aircraft Warranty Certificate)
to the Purchase Agreement.
----------------------------
[***] Represents material which has been redacted and filed separately with the
Commission pursuant to a request for confidential treatment pursuant to Rule
24b-2 under the Securities Exchange Act of 1934, as amended.
--------------------------------------------------------------------------------
Attachment H to PA DCT-025/2003 Page 7 of 7