Common use of Period of FHA Clause in Contracts

Period of FHA. Conversion from ***** Month Rate to ***** Month Rate 3.1 The Period of FHA for only the SL3 Eligible Engines shall begin on the relevant EIS Under FHA date listed for the SL3 Aircraft in Schedule 1 hereto, and shall expire ***** months thereafter (the “SL3 Period of FHA”). For the avoidance of doubt, the Period of FHA in the FHA for all other Eligible Engines shall remain unchanged. 3.2 Spirit may elect to extend the SL3 Period of FHA to a period of ***** months from the relevant EIS Under FHA date (the “Extended SL3 Period of FHA”), by notifying IAE in writing at any time prior to February 29, 2008. In the event that Spirit does select the Extended SL3 Period of FHA for the SL3 Eligible Engines, then 3.2.1 Notwithstanding Section 1.3 above, the SL3 Aircraft shall be considered Other New Aircraft as defined by Section 1.3.6 of the FHA and all terms and conditions of the FHA applicable to the Other New Aircraft shall apply to the SL3 Aircraft; 3.2.2 By virtue of the original Section 10.1.1 of the FHA (i.e. as unaffected by Section 4 below), the original Restoration Shop Visit Rates set forth in the FHA (the “***** Month Rate”) shall be applicable to the SL3 Eligible Engines rather than the ***** Month Rate; and 3.2.3 The Parties shall perform a reconciliation to effect Section 3.2.2 above by subtracting (a) The applicable ***** Month Rate multiplied by the Eligible Engine Flight Hours flown by the SL3 Eligible Engines from the beginning of the SL3 Period of FHA to the time of reconciliation (the “SL3 Reconciliation Period”), minus ***** Confidential portions of the material have been omitted and filed separately with the Securities and Exchange Commission. (b) The applicable ***** Month Rate multiplied by the Eligible Engine Flight Hours flown by the SL3 Eligible Engines during the Reconciliation Period. IAE shall reimburse Spirit for any excess payment amounts calculated above by issuing a credit against Spirit’s FHA useable against future FHA payments to IAE. 3.2.4 Following the Reconciliation Period, Spirit shall pay the applicable ***** Month SL3 Rate for the SL3 Eligible Engines in accordance with the terms of the FHA.

Period of FHA. Conversion from ***** Month Rate to ***** Month Rate 3.1 The Period of FHA for only the SL3 SL2 Eligible Engines shall begin on the relevant EIS Under FHA date listed for each of the SL3 SL2 Aircraft in Schedule 1 hereto, and shall expire ***** months thereafter (the “SL3 SL2 Period of FHA”). For the avoidance of doubt, the Period of FHA in the FHA as defined for all other Eligible Engines shall remain unchanged. 3.2 Spirit may elect to extend the SL3 SL2 Period of FHA to a period of ***** months from the relevant EIS Under FHA date (the “Extended SL3 SL2 Period of FHA”), by notifying IAE in writing at any time prior to February 29September 1, 20082007. In the event that Spirit does select the Extended SL3 SL2 Period of FHA for the SL3 Eligible EnginesFHA, then 3.2.1 Notwithstanding Section 1.3 above, the SL3 Aircraft shall be considered Other New Aircraft as defined by Section 1.3.6 of the FHA and all terms and conditions of the FHA applicable to the Other New Aircraft shall apply to the SL3 Aircraft; 3.2.2 By virtue of the original Section Clause 10.1.1 of the FHA (i.e. as unaffected amended for the SL2 Eligible Engines by Section 4 below), the original Restoration Shop Visit Rates set forth in the FHA (the “***** Month Rate”) Rate shall be applicable to the SL3 SL2 Eligible Engines rather than the ***** Month Rate; and 3.2.3 3.2.2 The Parties shall perform a reconciliation to effect Section 3.2.2 3.2.1 above by subtracting (a) The applicable ***** Month Rate multiplied by the Eligible Engine Flight Hours flown by the SL3 SL2 Eligible Engines from the beginning of the SL3 SL2 Period of FHA to the time of reconciliation (the “SL3 SL2 Reconciliation Period”), minus ***** Confidential portions of the material have been omitted and filed separately with the Securities and Exchange Commission.minus (b) The applicable ***** Month Rate multiplied by the Eligible Engine Flight Hours flown by the SL3 SL2 Eligible Engines during the SL2 Reconciliation Period. IAE shall reimburse Spirit for any excess payment amounts calculated above by issuing a credit against Spirit’s FHA useable against future FHA payments to IAE.. ***** Confidential portions of the material have been omitted and filed separately with the Securities and Exchange Commission. NKS-FHA-SL2 (2006-JUN-06) (3 Pembroke AC EXECUTION VERSION).doc 3.2.4 3.2.3 Following the Reconciliation Period, Spirit shall pay the applicable ***** Month SL3 Rate for the SL3 SL2 Eligible Engines in accordance with the terms of the FHA.