Common use of PRICE AND PRICE ADJUSTMENT Clause in Contracts

PRICE AND PRICE ADJUSTMENT. A. Contract Parameters The MCPH Rate is predicated on the parameters set forth below: 1. A fleet of ten (10) new B747-400 aircraft, powered by new CF6-80C2B1F Engines, to be identified by serial number and estimated to be delivered as set forth in Appendix "B" attached hereto, operated by Buyer for the duration of this Agreement, provided that Buyer takes delivery of at least two (2) aircraft per year beginning in 1998 and takes delivery of at least ten (10) aircraft by the end of 2001. In addition these parameters will apply to up to ten (10) optional aircraft which may be acquired by Buyer. 4. Article II. (Continued) 5. A route structure which includes not more than *** of total takeoffs and landings by aircraft contemplated by this Agreement in Africa, the Middle East, India, and Mexico. Should Buyer exceed the *** threshold, Buyer shall pay ***, per aircraft in the covered fleet per year for each percentage point (rounded to the next whole percentage point) in excess of the threshold. Should Buyer exercise the option to include additional Engines under this Agreement, the threshold for those option Engines shall be ***. The parties shall evaluate route structure data quarterly and reconcile any payments due for Buyer operation in excess of the threshold during January of each year. The parameters set forth in Paragraphs 2. through 5. above will be evaluated by ESI and Buyer quarterly. Buyer shall provide information relative to Engines covered by this Agreement, at ESI's request, including (but not limited to information available through ACARS) in accordance with a mutually agreed upon format. In addition to the adjustment specified in Paragraph A.7., below, should Buyer deviate from the parameters specified above, the Base Price per Engine Flying Hour ("EFH") shall be adjusted as set forth in Attachment "A". Such adjustment shall apply to all future EFH until a subsequent adjustment occurs. 6. Line Maintenance performed by Buyer, as set forth in Section 2., Article III., Paragraph A.6. 7. Engine spares and Equipment quantity as set forth in Section 2 - Article II., below, for Buyer's Fleet of Ten (10) B747-400 Aircraft. B. Base Pricing The Base Year for Prices specified in this Agreement is ***. All Base Prices(s) are stated in United States Dollars per EFH. C. MCPH Rate 1. Base Price Base Prices are as follows: Basic Engine Price Per Basic Engine Price Per Engine Year EFH (10 Firm Aircraft) EFH (10 Option Aircraft) ----------- ---------------------- ------------------------ Years 1-2 *** *** Years 3-4 *** *** Years 5-6 *** *** Years 7-10 *** MCPH rate is applicable on all EFH covered by this Agreement commencing with the Effective Date of the Agreement and the term "MCPH Rate" may be used to refer to the Basic Engine Price Per EFH. Basic Engine Price includes ***. Article II (Continued)

PRICE AND PRICE ADJUSTMENT. A. Contract Parameters The MCPH Rate is predicated on the parameters set forth below: 1. A fleet of ten (10) new B747-400 aircraft, powered by new CF6-80C2B1F 80C2B5F Engines, to be identified by serial number and estimated to be delivered as set forth in Appendix "B" attached hereto, operated by Buyer for the duration of this Agreement, provided that Buyer takes delivery of at least two (2) aircraft per year beginning in 1998 and takes delivery of at least ten (10) aircraft by the end of 2001. In addition these parameters will apply to up to ten (10) optional aircraft which may be acquired by Buyer. 4. Article II. (Continued) 5. A route structure which includes not more than *** of total takeoffs and landings by aircraft contemplated by this Agreement in Africa, the Middle East, India, and Mexico. Should Buyer exceed the *** threshold, Buyer shall pay ***, per aircraft in the covered fleet per year for each percentage point (rounded to the next whole percentage point) in excess of the threshold. Should Buyer exercise the option to include additional Engines under this Agreement, the threshold for those option Engines shall be ***. * The parties shall evaluate route structure data quarterly and reconcile any payments due for Buyer operation in excess of the threshold during January of each year. The parameters set forth in Paragraphs 2. through 5. above will be evaluated by ESI and Buyer quarterly. Buyer shall provide information relative to Engines covered by this Agreement, at ESI's request, including (but not limited to information available through ACARS) in accordance with a mutually agreed upon format. In addition to the adjustment specified in Paragraph A.7., below, should Buyer deviate from the parameters specified above, the Base Price per Engine Flying Hour ("EFH") the parties shall be adjusted as set forth in Attachment "A"negotiate an equitable adjustment thereto. Such adjustment shall apply to all future EFH until a subsequent adjustment occurs. 6. Line Maintenance performed by Buyer, as set forth in Section 2., Article III., Paragraph A.6. 7. Engine spares and Equipment quantity as set forth in Section 2 - Article II., below, for Buyer's Fleet of Ten (10) B747-400 Aircraft. B. Base Pricing The Base Year for Prices specified in this Agreement is ***. All Base Prices(s) are stated in United States Dollars per EFH. C. MCPH Rate 1. Base Price Base Prices are as follows: Basic Engine Price Per Basic Engine Price Per Engine Year EFH (10 Firm Aircraft) EFH (10 Option Aircraft) ----------- ---------------------- ------------------------ Years 1-2 *** *** Years 3-4 *** *** Years 5-6 *** *** Years 7-10 *** MCPH rate is applicable on all EFH covered by this Agreement commencing with the Effective Date of the Agreement and the term "MCPH Rate" may be used to refer to the Basic Engine Price Per EFH. Basic Engine Price includes ***. Article II (Continued)