Common use of Spare Parts Inventory Clause in Contracts

Spare Parts Inventory. To ensure availability of spare parts in accordance with published lead time, spare parts provisioning maintains a modern, comprehensive requirements planning and inventory management system which is responsive to changes in Spirit’s demand, special support programs and engineering design. Organized on an engine model basis, this system is intended to maintain part availability for delivery to customers consistent with published lead times. A majority of parts in the spare parts inventory are continually controlled by an Automatic Forecasting and Ordering System. Those parts which do not lend themselves to automatic control due to supercedure, unusual usage or conversion requirements are under the direct manual control of Spares Planning personnel. As additional protection against changes in production lead time or unpredicted demand, certain raw materials are also inventoried. Successful inventory management is keyed to accurate requirements planning. In support of the requirements planning effort, a wide ranging data retrieval and analysis program is offered. This program concerns itself both with the customer logistics and technical considerations as follows: • Forecasts of life limited parts requirements are requested and received semi-annually from major customers. Based on the size of Spirit’s order, Spirit shall be considered a major customer. • Engine technical conferences are held frequently within IAE to assess the impact of technical problems on parts. • For a selected group of parts a provisioning conference system is offered which considers actual part inventory change, including usage and receipts, as reported monthly by participating customers. *****Confidential portions of the material have been omitted and filed separately with the Securities and Exchange Commission. 5.1.5 Packaging All material is packaged in general compliance with Air Transport Association of America (ATA) Specification No. 300.

Spare Parts Inventory. To ensure availability of spare parts in accordance with published lead time, spare parts provisioning maintains a modern, comprehensive requirements planning and inventory management system which is responsive to changes in Spirit’s 's demand, special support programs and engineering design. Organized on an engine model basis, this system is intended to maintain part availability for delivery to customers consistent with published lead times. A majority of parts in the spare parts inventory are continually controlled by an Automatic Forecasting and Ordering System. Those parts which do not lend themselves to automatic control due to supercedure, unusual usage or conversion requirements are under the direct manual control of Spares Planning personnel. As additional protection against changes in production lead time or unpredicted demand, certain raw materials are also inventoried. Successful inventory management is keyed to accurate requirements planning. In support of the requirements planning effort, a wide ranging data retrieval and analysis program is offered. This program concerns itself both with the customer logistics and technical considerations as follows: Page 45 of 45 • Forecasts of life limited parts requirements are requested and received semi-annually from major customers. Based on the size of Spirit’s 's order, Spirit shall be considered a major customer. • Engine technical conferences are held frequently within IAE to assess the impact of technical problems on parts. • For a selected group of parts a provisioning conference system is offered which considers actual part inventory change, including usage and receipts, as reported monthly by participating customers. *****Confidential portions of the material have been omitted and filed separately with the Securities and Exchange Commission. 5.1.5 Packaging All material is packaged in general compliance with Air Transport Association of America (ATA) Specification No. 300.

Spare Parts Inventory. To ensure availability of spare parts in accordance with published lead time, spare parts provisioning maintains a modern, comprehensive requirements planning and inventory management system which is responsive to changes in Spirit’s 's demand, special support programs and engineering design. Organized on an engine model basis, this system is intended to maintain part availability for delivery to customers consistent with published lead times. A majority of parts in the spare parts inventory are continually controlled by an Automatic Forecasting and Ordering System. Those parts which do not lend themselves to automatic control due to supercedure, unusual usage or conversion requirements are under the direct manual control of Spares Planning personnel. As additional protection against changes in production lead time or unpredicted demand, certain raw materials are also inventoried. Successful inventory management is keyed to accurate requirements planning. In support of the requirements planning effort, a wide ranging data retrieval and analysis program is offered. This program concerns itself both with the customer logistics and technical considerations as follows: • Forecasts of life limited parts requirements are requested and received semi-annually from major customers. Based on the size of Spirit’s 's order, Spirit shall be considered a major customer. • Engine technical conferences are held frequently within IAE to assess the impact of technical problems on parts. • For a selected group of parts a provisioning conference system is offered which considers actual part inventory change, including usage and receipts, as reported monthly by participating customers. *****Confidential portions of the material have been omitted and filed separately with the Securities and Exchange Commission. 5.1.5 Packaging All material is packaged in general compliance with Air Transport Association of America (ATA) Specification No. 300.