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|  DATED JUNE 17, 2011                                                                                                                            |
|------------------------------------------------------------------------------------------------------------------------------------------------------|
| WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION,not individually but solely as Owner Trusteeas Lessor and COLGAN AIR, INC.as Lessee  |
|                                                                                                                                                 | AIRCRAFT LEASE AGREEMENTIn respect ofONE BOMBARDIER DHC-8-402 AIRCRAFTwith manufacturer's serial number 4351and US Registration Number N351NG |   |

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| CONTENTS |
|----------|
| Clause   | Page |   |

| 1 | Definitions And Interpretation  | 4 |
|---|--------------------------------------|---|

| 2 | Representations And Warranties  | 29 |
|---|--------------------------------------|----|

| 3 | Conditions Precedent | 34 |
|---|----------------------|----|

| 4 | Liability of lessor limited | 36 |
|---|-----------------------------|----|

| 5 | Leasing And Commencement | 36 |
|---|--------------------------|----|

| 6 | Lessor's Warranties | 39 |
|---|---------------------|----|

| 7 | Rent | 41 |
|---|------|----|

| 8 |    Payments, Interest And Calculations | 43 |
|---|--------------------------------------------------|----|

| 9 | General Indemnity | 45 |
|---|-------------------|----|

| 10 | Taxation  | 49 |
|----|----------------|----|

| 11 | Covenants  | 57 |
|----|-----------------|----|

| 12 | Wet Leasing And SubLeasing | 60 |
|----|----------------------------|----|

| 13 | General Operation Of Aircraft | 62 |
|----|-------------------------------|----|

| 14 | Maintenance, Repair, Overhaul And Operation  | 64 |
|----|---------------------------------------------------|----|

| 15 | Return Compensation Payments | 73 |
|----|------------------------------|----|

| 16 | Title And Registration  | 73 |
|----|------------------------------|----|

| 17 | Identification Plates | 76 |
|----|-----------------------|----|

| 18 | Insurance | 76 |
|----|-----------|----|

| 19 | Loss And Damage  | 83 |
|----|-----------------------|----|

| 20 | Requisition | 88 |
|----|-------------|----|

| 21 | Redelivery | 89 |
|----|------------|----|

| 22 | Termination Of Lease  | 90 |
|----|----------------------------|----|

| 23 | Termination Events   | 92 |
|----|--------------------------------|----|

| 24 | Lessor's Rights Following A Termination Event  | 95 |
|----|-----------------------------------------------------|----|

| 25 | Notices | 100 |
|----|---------|-----|

| 26 | Assignment  | 101 |
|----|------------------|-----|

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| 27 | Miscellaneous  | 105 |
|----|---------------------|-----|

| 28 | Confidentiality | 107 |
|----|-----------------|-----|

| 29 | Law And Jurisdiction | 108 |
|----|----------------------|-----|

| SCHEDULE 1 | Description Of Aircraft | 112 |
|------------|-------------------------|-----|

| SCHEDULE 2 |      Lessee Acceptance Certificate | 113 |
|------------|-------------------------------------------------------------|-----|

| SCHEDULE 3 | Conditions Precedent | 118 |
|------------|----------------------|-----|

| SCHEDULE 4 | Form of Deregistration Power of Attorney | 121 |
|------------|------------------------------------------|-----|

|   |          Appendix A:  Commercial Terms                                                                                                                                                          123 |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (1)   | WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION, a national banking association organized under the federal law of the United States of America, not in its individual capacity, but solely as owner trustee (together with its successors and assigns, "Lessor"); and |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | COLGAN AIR, INC., a corporation organized and existing under the laws of the Commonwealth of Virginia (together with its successors and assigns, "Lessee"). |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.   | DEFINITIONS AND INTERPRETATION |
|----------------|--------------------------------|

| 1.1   | Definitions |
|-----------------|-------------|

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| (a)   | that is imposed on, based on or measured by the overall gross or net income, profits, gains, capital or net worth of that Indemnitee (whether denominated as franchise, margin, excess profits, conduct of business, capital gains, minimum and/or alternative minimum taxes) other than (i) any such Tax imposed by any Government Entity or other Tax authority of any jurisdiction other than the USA, any state or locality thereof or any taxing authority therein which results solely from (x) the use, operation, presence or registration of the Aircraft, the Airframe, any Engine, Propeller or Part thereof, or any Other Aircraft or part thereof, (y) the activities of Lessee or any other person or any of their respective Affiliates having possession of the Aircraft, the Airframe, any Engine, any Propeller or any Part, or any Other Aircraft or part thereof, or (z) Lessee or its Affiliates, or any other person on their behalf, having made (or having been deemed to have made) a payment to such Indemnitee, in each such case in or from the jurisdiction imposing such Tax, (ii) any deduction or withholding of Tax which solely results from any or a combination of the circumstances described in the previous clauses (x), (y) and (z) (for the avoidance of doubt, and not as a result of a Tax-Indemnitee being a Non-U.S. Person), (iii) amounts necessary to make payments on an After-Tax Basis or (iv) any Tax which is in the nature of a sales, use, rental, property, gross receipts (but only if in the nature of a sales, use or transaction privilege Tax), transaction privilege, stamp, goods and services, excise, license, value added Tax or transfer Tax; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (b)   | that is imposed with respect to any period or portion thereof after, or any event occurring after, Redelivery; |
|-----------------|----------------------------------------------------------------------------------------------------------------|

| (c)   | arising out of or caused by (i) the willful misconduct or gross negligence of such Indemnitee or any of its Affiliates or (ii) a breach by such Indemnitee or any of its Affiliates of the express terms of any Operative Document to which it is a party; or |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | immediately arising out of and as a consequence of any assignment, transfer or disposal by such Indemnitee or any of its Affiliates of all or a portion of its interest in the Aircraft, the Trust Estate or any Operative Document or Financing Document to which it is a party (including any involuntary disposition attributable to the bankruptcy of such Indemnitee, or any voluntary sale, transfer, mortgaging, pledging or financing by such Indemnitee of all or a portion of its interest in the Aircraft, the Airframe, any Engine, Propeller or Part thereof or any Other Aircraft or part thereof, or this Agreement in a transaction not contemplated by the Operative Documents) (but without prejudice to the rights of the relevant assignee, transferee or disposee as an Indemnitee hereunder following such assignment, transfer or disposal) other than any Tax attributable to (i) the exercise of remedies in connection with a Termination Event, (ii) the substitution, modification or improvement of the Aircraft, the Airframe, any Engine, any Propeller or Part thereof or (iii) any assignment, transfer or disposal required by applicable law or any Operative Document, or requested by Lessee or any of its Affiliates. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (a)   | any Security Interest created or permitted by any Operative Document or any Financing Document; |
|-----------------|-------------------------------------------------------------------------------------------------|

| (b)   | any airport's, air navigation authority's, airport hangar keeper's, mechanic's, material man's, carrier's, employee's or other similar Security Interest arising in each case, in the ordinary course of business by statute or by operation of law in respect of obligations (1) which are not overdue or (2) which are being contested in good faith by appropriate proceedings (and for the payment of which adequate reserves have been recorded in accordance with GAAP) so long as (in the case of (2) above) such proceedings or the continued existence of such Security Interests do not involve the material likelihood that the respective interests of Lessor, Owner, Owner Participant or any Financing Party in the Airframe, any Engine, any Part, or any Insurances will be forfeited or of any criminal liability on the part of any Indemnitee; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (c)   | any Security Interest for Taxes or any government or statutory charges or levies not yet assessed or if assessed not yet due and payable or if due and payable which Lessee is disputing or contesting in good faith by appropriate action or proceedings and for which adequate reserves are recorded in accordance with GAAP so long as such action or proceedings do not involve any material risk of the sale, forfeiture or loss of the Aircraft or of any criminal liability on the part of any Indemnitee; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | the rights of any other person under agreements or arrangements to the extent expressly permitted by the provisions of Clause 12 or Clause 14; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | any judgment lien against Lessee's (but not, for the avoidance of doubt, Lessor's or Owner's) interest in the Aircraft that is not discharged, vacated, stayed, reversed, stayed pending appeal or bonded within 60 days after its creation; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | any other lien against Lessee's (but not, for the avoidance of doubt, Lessor's or Owner's) interest in the Aircraft or any part thereof for which Lessee has provided (either to Lessor or to the person asserting such Security Interest or to a court having jurisdiction over the claim) a bond or other adequate security for the amount claimed; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g)   | any right of the Aviation Authority or any other Government Entity of the State of Registration to cause the occurrence of any of the events described in paragraphs (c) or (e) of the definition of Total Loss for a period of days fewer than the number of days referenced in such paragraphs; and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h)   | any Indemnitee's Security Interest. |
|-----------------|-------------------------------------|

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| (a)   | has at least equivalent SHP as the Engine being replaced; and |
|-----------------|---------------------------------------------------------------|

| (b)   | has a value, utility and remaining useful life at least equal to the Engine being replaced; |
|-----------------|---------------------------------------------------------------------------------------------|

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| (a)   | the agreed, actual, arranged, compromised or constructive total loss of the Airframe (including any damage to the Airframe which results in an insurance settlement on the basis of a total loss, or requisition for use or hire of the Airframe which results in an insurance settlement on the basis of a total loss); or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | the Airframe being destroyed, damaged beyond practical or economic repair or permanently rendered unfit for normal use for any reason whatsoever; or |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | the Compulsory Acquisition of the Airframe; or |
|-----------------|------------------------------------------------|

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| (d)   | the hijacking, theft, or disappearance of the Airframe (i) for a period of thirty (30) consecutive days or more or (ii) if earlier, beyond the Lease Termination Date; or |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | the condemnation, confiscation, capture, deprivation, seizure or requisition for use or hire of the Airframe or the deprivation of the possession or use of the Airframe as a result of any law or other action by the Aviation Authority or any Government Entity (other than where the same amounts to the Compulsory Acquisition of the Airframe) which deprives any person entitled to have possession and/or use of the Airframe of its possession and/or use (i) for more than a period of thirty consecutive days or (ii) if earlier, beyond the Lease Termination Date; or |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | any other case which by subsequent agreement Lessor and Lessee may deem, with the agreement of the insurers, to be a Total Loss. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------|

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| 1.2   | Headings |
|-----------------|----------|

| 1.3   | Interpretation |
|-----------------|----------------|

| (a)   | references to Clauses and Schedules are to be construed as references to the clauses of, and schedules to, this Agreement and references to this Agreement include Schedules; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (b)   | references to (or to any specified provision of) this Agreement or any other document shall be construed as references to this Agreement, that provision or that document as in force for the time being and as amended in accordance with the terms thereof or, as the case may be, with the agreement of the relevant parties and (where such consent is, by the terms of this Agreement or the relevant document required to be obtained as a condition to such amendment being permitted) the prior written consent of Lessor and Lessee; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | references to "applicable law" includes, without limitation (i) applicable laws, statutes, decrees, decree-laws, acts, codes, legislation, treaties, conventions and similar rules, in each case of any state or government or instrumentality, agency or subdivision thereof, in each case, as amended, modified, varied or supplemented from time to time, (ii) applicable final judgments, orders, determinations or awards of any court from which there is no right of appeal or if there is a right of appeal such appeal is not prosecuted within the allowable time, and (iii) applicable orders, rules and regulations of any state or government or any instrumentality, agency or sub-division thereof; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | reference to a "consent" also includes an approval, authorization, exemption, filing, license, order, permission, recording or registration; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | words importing the plural shall include the singular and vice versa; |
|-----------------|-----------------------------------------------------------------------|

| (f)   | references to a person shall be construed as including references to an individual, firm, partnership, consortium, joint venture, association, company, corporation, joint-stock company, unincorporated body of persons and any Government Entity; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g)   | reference to "Lessor", "Owner", "Owner Participant", "Lessee", "Security Agent", "Financing Party" or any other person shall include any permitted successors, assigns and transferees of such person; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h)   | references to any enactment shall be deemed to include references to such enactment as re-enacted, amended or extended; and |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------|

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| (i)   | references to the "agreed form" in relation to any document or agreement is a reference to the form of such document or agreement agreed between Lessor and Lessee on or before the date hereof. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | REPRESENTATIONS AND WARRANTIES |
|----------------|--------------------------------|

| 2.1   | Lessee's Representations |
|-----------------|--------------------------|

| (a)   | Lessee is a corporation duly incorporated and validly existing under the laws of the Commonwealth of Virginia and has the corporate power and authority to carry on its business as it is being conducted; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Lessee (i) has the Commonwealth of Virginia as its "location" (as such term is used in Section 9-307 of the UCC of the State of New York as in effect on the date hereof) and its true and complete name as indicated on the public records of the Commonwealth of Virginia and its mailing address is as set forth in clause 25.1 hereto; (ii) is duly qualified to do business as a foreign corporation in each jurisdiction in which its material operations or the nature of its business requires (except as is not reasonably likely to have a material adverse effect on Lessee's ability to perform its obligations under the Operative Documents to which it is a party); and (iii) is a Certificated Air Carrier and holds all licenses, certificates, permits and franchises from the appropriate agencies of the United States of America and/or all other governmental authorities having jurisdiction necessary to authorize it to engage in air transport and to carry on scheduled passenger service as presently conducted; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Lessee has the corporate power to enter into and perform, and has taken all necessary corporate action to authorize the entry into, performance and delivery of each Operative Document to which it is a party, and upon execution by the other parties thereto, the Operative Documents to which it is a party will constitute its valid and legally binding and enforceable obligations, except as such enforceability may be limited by bankruptcy, insolvency or similar laws affecting the rights of creditors generally or by general principles of equity; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (d)   | the execution and delivery of, the performance of its obligations under, and compliance by Lessee with the provisions of, the Operative Documents to which it is a party will not (i) contravene any existing applicable law of the USA, (ii) conflict with, or result in any breach of any of the terms of, or constitute a default under, any agreement or other instrument to which Lessee is a party or is subject or by which it or any of its property is bound, (iii) contravene or conflict with any provision of its constitutional documents (with respect to each of (i), (ii) and (iii) above, except as is not reasonably likely to have a material adverse effect on Lessee's ability to perform its obligations under the Operative Documents to which it is a party) or (iv) result in the creation or imposition of, or oblige it to create, any Security Interest (other than any Permitted Security Interest) over any of its assets, rights or revenues; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | (i) Lessee is not in default under any material agreement to which it is a party or by which it may be bound, except any default as is not reasonably likely to have a material adverse effect on Lessee's ability to perform its obligations under the Operative Documents to which it is a party, and (ii) no litigation, arbitration or administrative proceeding is taking place or, to the best of its knowledge, pending or threatened against Lessee which is reasonably likely to have a material adverse effect on Lessee's ability to perform its obligations under the Operative Documents to which it is a party; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | so far as Lessee is aware, and except where the failure to take such action is not reasonably likely to have a material adverse effect on Lessee's ability to perform its obligations under the Operative Documents to which it is a party, and other than the registrations and filings contemplated by paragraph (g) below, it is not necessary to ensure the legality, validity, enforceability or admissibility in evidence of each of the Operative Documents (i) that any of them or any other instrument be notarized, filed, recorded, registered or enrolled in any court, public office or elsewhere in the USA or (ii) that any stamp, registration or similar tax or charge be paid in the USA on or in relation to any of the Operative Documents or the Security Documents; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (g)   | except for (i) registration of the Aircraft pursuant to the Federal Aviation Act in the name of Owner, (ii) the filing for recording pursuant to the Federal Aviation Act of the Trust Agreement, this Agreement, the Acceptance Certificate, and the FAA Bill of Sale, (iii) the filing of financing statements (and continuation statements at periodic intervals) with respect to the security and other interests created by such documents under the Uniform Commercial Code of Virginia, (iv) the filing of such releases and termination statements as are necessary to terminate the liens relating to the existing financing of the Aircraft, which shall be satisfied in full on the Delivery Date,  (v) the filing of AC Form 8050-135 with the FAA with respect to the Airframe and each Engine as to permit the registration of the interests described in clause (vi) below, (vi) the registration with the International Registry of (A) a prospective contract of sale as to the Airframe and each Engine from Lessee to Owner, and (B) a prospective international interest as to the Airframe and each Engine under this Agreement between Lessee and Lessor, in favor of Lessor, and (vii) the taking of possession by Lessor of the original counterparts of the Lease and the Acceptance Certificate, no further action, including any filing or recording of any document (including any financing statement in respect thereof under Article 9 of the Uniform Commercial Code of any applicable jurisdiction) or registration, is necessary or advisable in order to establish and perfect Owner's title and interest in the Aircraft as against Lessee, and as against any third parties in any applicable jurisdictions in the United States; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h)   | the publicly available audited financial statements of Parent for the financial year ended December 31, 2010 certified by independent auditors have been prepared in accordance with accounting principles generally accepted in the USA which have been consistently applied and fairly present in all material respects the financial position of Lessee as at such date except as disclosed to the contrary in those financial statements and, as at such date, Lessee did not have any material liabilities (contingent or otherwise) or any material unrealized or anticipated losses which are not disclosed by, or reserved against in, such financial statements and there has been no material adverse change in the business or financial condition of Lessee since publication of such financial statements; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (i)   | Lessee has received and complied with or will, prior to the Delivery Date, receive and comply with, each Authorization required for the valid authorization, execution, delivery and performance of this Agreement and each other Operative Document, the validity and enforceability hereof and thereof and the compliance, satisfaction or performance by Lessee with or of all monetary and other obligations hereunder and thereunder and all such Authorizations are, or prior to the Delivery Date will be, valid and in full force and effect, in each case except where the failure to do or be so is not reasonably likely to have a material adverse effect on Lessee's ability to perform its obligations under the Operative Documents to which it is a party; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (j)   | The choice by Lessee of New York law to govern the Operative Documents to which it is a party and the submission by Lessee to the jurisdiction of the courts set forth in clause 29.2 is valid and binding on Lessee; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (k)   | in any proceedings taken in the USA or any other jurisdiction in relation to any of the Operative Documents, Lessee will not be entitled to claim for itself or any of its assets immunity from suit, execution, attachment or other legal process; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (l)   | Lessee has paid or caused to be paid all fees or charges assessed and due against it (or against any aircraft owned by or leased to or operated by it) by any airport or air navigation authority assessing landing or navigation fees or charges in respect of the Aircraft or any other aircraft owned by or leased to or operated by it, except where the failure to make such payment is not reasonably likely to have a material adverse effect on Lessee's ability to perform its obligations under the Operative Documents to which it is a party; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (m)   | Lessor has, pursuant to the Bill of Sale, received good and marketable title to the Aircraft, free and clear of all Security Interests other than Permitted Security Interests; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (n)   | Lessor, as lessor under the Lease, is entitled to the benefits and protection of Section 1110 of the Bankruptcy Code in connection with its rights to take possession of the Aircraft in the event of a case under Chapter 11 of the Bankruptcy Code in which Lessee is a debtor; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (o)   | the Capacity Purchase Agreement remains in full force and effect and there has been no material adverse change to the terms thereof; and |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------|

| (p)   | no Relevant Event has occurred and is continuing. |
|-----------------|---------------------------------------------------|

| 2.2   | Repetition of Lessee Representations |
|-----------------|--------------------------------------|

| 2.3   | Lessor Representations |
|-----------------|------------------------|

| (a)   | Trust Company is a national banking association duly organized and validly existing under the laws of the United States and it has the full corporate power and authority to own the Aircraft and carry on the business of Lessor contemplated under this Agreement and the other Operative Documents; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Trust Company has the corporate power to enter into and perform, and has taken all necessary corporate action to authorize the entry into, performance and delivery of the Trust Agreement and (assuming due authorization, execution and delivery of the Trust Agreement by the Owner Participant) has full right, power and authority to enter into and perform its obligations under the Trust Agreement and as Owner Trustee pursuant to the Trust Agreement under the other Operative Documents to which it is a party, and upon execution by the other parties thereto, the Operative Documents to which it is a party will constitute its valid and legally binding and enforceable obligations, except as such enforceability may be limited by bankruptcy, insolvency or similar laws affecting the rights of creditors generally or by general principles of equity; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (c)   | the execution and delivery of, the performance of its obligations under, and compliance by Trust Company with the provisions of, the Trust Agreement will not (i) conflict with, or result in any material breach of any of the terms of, or constitute a default under, any agreement or other instrument to which Trust Company is a party or is subject or by which it or any of its property is bound, (ii) contravene or conflict with any provision of its constitutional documents or (iv) result in the creation or imposition of, or oblige it to create, any Security Interest over any of its assets, rights or revenues; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | the choice by Lessor of New York law to govern the Operative Documents to which it is a party and the submission by Lessor to the jurisdiction of the courts set forth in Clause 29.2 is valid and binding on Lessor; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | in any proceedings taken in the USA or any other jurisdiction in relation to any of the Operative Documents, Lessor will not be entitled to claim for itself or any of its assets immunity from suit, execution, attachment or other legal process; and |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | Trust Company is a "citizen of the United States" as defined in Subtitle VII of Title 49 of the United States Code. |
|-----------------|---------------------------------------------------------------------------------------------------------------------|

| 2.4   | Repetition of Lessor Representations |
|-----------------|--------------------------------------|

| 3.   | CONDITIONS PRECEDENT |
|----------------|----------------------|

| 3.1   | Lessor Conditions Precedent |
|-----------------|-----------------------------|

| (a)   | Lessor shall have received from Lessee (and Lessee hereby undertakes to provide to Lessor), on or before the Delivery Date, each of the documents, evidence and payments specified in Schedule 3 in each case in form and substance satisfactory to Lessor and the other conditions specified in Schedule 3 shall have been satisfied; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (b)   | title to the Aircraft shall have been transferred by Lessee to Lessor at the Delivery Location in accordance with the terms of the Sale Agreement; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | all representations and warranties made by Lessee pursuant to Clauses 2.1 and 2.2 shall be true and accurate in all material respects on the Delivery Date; and |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | no Relevant Event shall have occurred and be continuing. |
|-----------------|----------------------------------------------------------|

| 3.2   | Waiver or Deferral of Conditions |
|-----------------|----------------------------------|

| 3.3   | Lessee Conditions Precedent |
|-----------------|-----------------------------|

| (a)   | Lessee shall have received the Participation Agreement and an IRS Form W-9, each duly executed by the Owner Participant; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------|

| (b)   | Lessee shall have received an IRS Form W-9 duly executed by the Lessee; and |
|-----------------|-----------------------------------------------------------------------------|

| (c)   | all representations and warranties made by Lessor pursuant to Clause 2.3 and 2.4 and by the Owner Participant pursuant to the Participation Agreement shall be true and accurate in all material respects on the Delivery Date. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.4   | Waiver or Deferral of Conditions |
|-----------------|----------------------------------|

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| 4.   | LIABILITY OF LESSOR LIMITED |
|----------------|-----------------------------|

| 5.   | LEASING AND COMMENCEMENT |
|----------------|--------------------------|

| 5.1   | Agreement to Lease |
|-----------------|--------------------|

| 5.2   | Delivery |
|-----------------|----------|

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| 5.3   | Delivery Condition |
|-----------------|--------------------|

| 5.4   | Cancellation |
|-----------------|--------------|

| 5.5   | [Intentionally Omitted] |
|-----------------|-------------------------|

| 5.6   | Early Purchase Option |
|-----------------|-----------------------|

| (a)   | Lessee shall have the option, exercisable on ***, to purchase the Aircraft on such *** Date for the Early Purchase Option Price. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------|

| (b)   | On such Rent Payment Date: |
|-----------------|----------------------------|

| (i)   | Lessee shall pay to Lessor the Rent payable on such Rent Payment Date together with the Early Purchase Option Price (together with all Additional Amounts then due and payable hereunder which remain unpaid); |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (ii)   | Lessor shall, subject to receipt of the amount due under paragraph (b)(i) above, transfer title (on an "as-is, where-is" basis) to the Aircraft to Lessee without recourse or warranty of any kind (other than a warranty that at the time of sale, the Aircraft shall be free of all Indemnitee's Security Interests but subject to all other Security Interests) and shall execute a bill of sale in favor of Lessee evidencing such transfer of title, and shall execute such other registration and deregistration documents and take such other actions (consistent with the foregoing) in connection therewith as Lessee may reasonably request; and |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | the leasing of the Aircraft hereunder shall terminate. |
|-------------------|--------------------------------------------------------|

| (c)   | Lessee will (without prejudice to its obligations under Clause 10 hereof) procure that the Aircraft is, at the time of transfer of title under paragraph (b)(ii) above, located in a jurisdiction where no sales, use, transaction privilege or similar Taxes arise as a result of the sale of the Aircraft. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Lessee and Lessor shall cooperate and use reasonable efforts to provide each other with any sales, use, transaction privilege or similar Tax forms or certificates necessary or desirable to substantiate an exemption from Tax otherwise imposed on or with respect to the sale of the Aircraft. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.7   | End of Lease Purchase Option |
|-----------------|------------------------------|

| (a)   | If Lessee has not exercised the early purchase option set forth in Clause 5.6, Lessee shall have the option, exercisable on the Expiration Date, to purchase the Aircraft on the Expiration Date for the Fair Market Value of the Aircraft on the Expiration Date. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | On the Expiration Date: |
|-----------------|-------------------------|

| (i)   | Lessee shall pay to Lessor the Rent payable on the Expiration Date together with the Fair Market Value of the Aircraft (together with any other amounts then due and payable hereunder which remain unpaid); |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (ii)   | Lessor shall, subject to receipt of the amount due under paragraph (b)(i) above, transfer title (on an "as-is, where-is" basis) to the Aircraft to Lessee without recourse or warranty of any kind (other than a warranty that at the time of sale, the Aircraft shall be free of all Indemnitee's Security Interests but subject to all other Security Interests) and shall execute a bill of sale in favor of Lessee evidencing such transfer of title, and shall execute such other registration and deregistration documents and take such other actions (consistent with the foregoing) in connection therewith as Lessee may reasonably request; and |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | the leasing of the Aircraft hereunder shall terminate. |
|-------------------|--------------------------------------------------------|

| (c)   | Lessee will (without prejudice to its obligations under Clause 10 hereof) procure that the Aircraft is, at the time of transfer of title under paragraph (b)(ii) above, located in a jurisdiction where no sales, use, transaction privilege or similar Taxes arise as a result of the sale of the Aircraft. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Lessee and Lessor shall cooperate and use reasonable efforts to provide each other with any sales, use, transaction privilege or similar Tax forms or certificates necessary or desirable to substantiate an exemption from Tax otherwise imposed on or with respect to the sale of the Aircraft. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.   | LESSOR'S WARRANTIES |
|----------------|---------------------|

| 6.1   | Quiet Enjoyment |
|-----------------|-----------------|

| (a)   | With effect from the Delivery Date, Lessor warrants and undertakes that, throughout the Lease Term and so long as no Termination Event shall have occurred and be continuing, Lessor shall not interfere with the use, possession and quiet enjoyment of the Aircraft by Lessee. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Lessor shall, upon request, procure that each of Owner (if Lessor is not the Owner), Owner Participant and any Security Agent or other Financing Party holding a mortgage or other Security Interest in the Aircraft shall give an undertaking to Lessee on terms substantially similar to the terms of Clause 6.1(a). |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 6.2   | Indemnitee's Security Interests |
|-----------------|---------------------------------|

| 6.3   | Waiver of Implied Warranties |
|-----------------|------------------------------|

| (a)   | THE AIRCRAFT WILL BE ACCEPTED BY LESSEE HEREUNDER "AS IS, WHERE IS", AND LESSEE AGREES AND ACKNOWLEDGES THAT, EXCEPT AS EXPRESSLY SET FORTH IN THIS CLAUSE 6, NEITHER LESSOR, OWNER, OWNER PARTICIPANT, ANY FINANCING PARTY NOR ANY OTHER INDEMNITEE WILL HAVE ANY LIABILITY IN RELATION TO, AND NEITHER LESSOR, OWNER, OWNER PARTICIPANT, ANY FINANCING PARTY NOR ANY OTHER INDEMNITEE HAS NOR WILL BE DEEMED TO HAVE MADE OR GIVEN, ANY CONDITIONS, WARRANTIES OR REPRESENTATIONS, EXPRESS OR IMPLIED, WITH RESPECT TO THE AIRCRAFT, INCLUDING BUT NOT LIMITED TO: |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | THE DESCRIPTION, AIRWORTHINESS, MERCHANTABILITY, SATISFACTORY CONDITION, FITNESS FOR ANY USE OR PURPOSE, VALUE, CONDITION, OR DESIGN, OF THE AIRCRAFT OR ANY PART; OR |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | ANY OBLIGATION, LIABILITY, RIGHT, CLAIM OR REMEDY IN TORT, WHETHER OR NOT ARISING FROM LESSOR'S, OWNER'S, OWNER PARTICIPANT'S, ANY FINANCING PARTY'S AND/OR ANY OTHER INDEMNITEE'S NEGLIGENCE, ACTUAL OR IMPUTED; OR |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (iii)   | ANY OBLIGATION, LIABILITY, RIGHT, CLAIM OR REMEDY FOR LOSS OF OR DAMAGE TO THE AIRCRAFT, FOR ANY LIABILITY OF LESSEE TO ANY THIRD PARTY, OR FOR ANY OTHER DIRECT OR INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES. |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | EXCEPT FOR THOSE RIGHTS ARISING FROM THE WARRANTIES EXPRESSLY SET FORTH IN THIS CLAUSE 6, LESSEE HEREBY WAIVES, AS BETWEEN ITSELF AND LESSOR, OWNER, OWNER PARTICIPANT, EACH FINANCING PARTY AND EACH OTHER INDEMNITEE, ALL ITS RIGHTS IN RESPECT OF ANY CONDITION, WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, ON THE PART OF LESSOR AND SUCH OTHER PERSONS AND ALL CLAIMS AGAINST LESSOR, OWNER, OWNER PARTICIPANT, EACH FINANCING PARTY AND EACH OTHER INDEMNITEE HOWSOEVER AND WHENEVER ARISING AT ANY TIME IN RESPECT OF OR OUT OF, IN EACH CASE, THE AIRCRAFT, INCLUDING ITS OPERATION OR PERFORMANCE. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | LESSEE CONFIRMS THAT IT IS IN THE BEST POSITION OF ANY PERSON TO JUDGE THE AIRWORTHINESS, DESCRIPTION, CONDITION, AND OPERATION OF THE AIRCRAFT AND IT IS FULLY AWARE OF THE PROVISIONS OF THIS CLAUSE 6.3 AND ACKNOWLEDGES THAT THE RENT AND OTHER AMOUNTS HAVE BEEN CALCULATED HAVING DUE REGARD FOR THE PROVISIONS OF THIS CLAUSE 6.3. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.   | RENT |
|----------------|------|

| 7.1   | Agreement to Pay Rent |
|-----------------|-----------------------|

----

| 7.2   | Additional Amounts |
|-----------------|--------------------|

| 7.3   | Obligations to Pay Rent Unconditional |
|-----------------|---------------------------------------|

| (a)   | any unavailability of the Aircraft for any reason, including, but not limited to, any defect in the airworthiness, merchantability, satisfactory condition, fitness for any purpose, condition, design or operation of any kind or nature of the Aircraft; or |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | the ineligibility of the Aircraft for any particular use or trade, or for registration or documentation under the laws of any relevant jurisdiction; or |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | the Total Loss (subject to Clause 19.5) of, or any damage to, the Aircraft, Airframe or any Engine or Propeller; or |
|-----------------|---------------------------------------------------------------------------------------------------------------------|

| (d)   | any set-off, deduction, withholding, counterclaim, recoupment, defense or other rights which Lessee may have against Lessor, Owner Participant, any Financing Party or any other person; or |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | any failure or delay (Subject to Clause 21.2(b)) on the part of any party hereto in performing or complying with any of the terms or conditions of this Agreement; or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | any insolvency, bankruptcy, administration, reorganization, arrangement, readjustment of debt, dissolution, liquidation or similar proceedings by or against Lessor, Owner Participant, any Financing Party or Lessee; or |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (g)   | any lack of due authorization of, or other defect in, this Agreement or any other Operative Document; |
|-----------------|-------------------------------------------------------------------------------------------------------|

| 8.   | PAYMENTS, INTEREST AND CALCULATIONS |
|----------------|-------------------------------------|

| 8.1   | Payment to Lessor |
|-----------------|-------------------|

| 8.2   | Payments on Non-Business Days |
|-----------------|-------------------------------|

| 8.3   | Late Payment |
|-----------------|--------------|

| 8.4   | Calculation of Interest |
|-----------------|-------------------------|

| 8.5   | Certificates |
|-----------------|--------------|

----

| 8.6   | Currency Conversion |
|-----------------|---------------------|

| 8.7   | Retention of Certain Payments |
|-----------------|-------------------------------|

----

| 8.8   | Application of Monies |
|-----------------|-----------------------|

| 9.   | GENERAL INDEMNITY |
|----------------|-------------------|

| 9.1   | General Indemnity |
|-----------------|-------------------|

| (a)   | relating to, or arising directly or indirectly in any manner or for any cause or reason whatsoever out of, the Operative Documents and the consummation of the transactions contemplated thereby; or |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | relating to, or arising directly or indirectly in any manner or for any cause or reason whatsoever out of the Aircraft, the Airframe, any Engine or Propeller or engine or propeller installed on the Aircraft, any Part, any Aircraft Documentation, including without limitation the delivery of the Aircraft by Lessor to Lessee hereunder, the capacity, age, airworthiness, value, durability, description, specific configuration, design, workmanship, materials, manufacture, construction, testing, delivery, import to the initial or any other State of Registration or operation, export (including, without limitation, any export at Redelivery to the Redelivery Location), ownership, registration, possession, control, use, operation (including, without limitation, Airport Charges), leasing, sub-leasing, insurance, maintenance, repair, refurbishment, condition (whether of the Aircraft, any Engine, any Propeller, any Part or the Aircraft Documentation), performance, fitness for any particular use or purpose or suitability of the Aircraft or any part thereof, service, overhaul, modification, change, alteration, loss, damage, removal, storage or re-delivery of, in or to the Aircraft or the Insurances, or otherwise in connection with the Aircraft, or relating to loss or destruction of or damage to any property, or death or injury of, or other loss of whatsoever nature suffered by, any person caused by, relating to, or arising from or out of (in each case whether directly or indirectly and whether arising on or prior to the date hereof) any of the foregoing matters; or |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (c)   | which may at any time be made or brought on the ground of latent or other defects or deficiencies therein, whether or not discoverable, known or unknown, apparent or concealed, exterior or interior; or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | which may at any time be made or brought on the ground that any design, article or material in the Aircraft or the operation or use thereof constitutes an infringement of any patent, intellectual property right or any other right whatsoever; or |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | relating to or arising out of any injury to or the death of any representative of Lessee during any inspection or test flight of the Aircraft undertaken before Delivery or at Redelivery; or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | which may at any time be incurred by such Indemnitee in preventing or attempting to prevent the arrest, confiscation, seizure, taking in execution, impounding, forfeiture or detention of the Aircraft, or in securing the release of the Aircraft or in connection with and following any Total Loss; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | is suffered or incurred as a consequence of the fraud, bad faith, willful misconduct, reckless disregard or gross negligence of such Indemnitee; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | arises as a consequence of the breach by such Indemnitee of the express terms of any Operative Document to which it is a party or as a result of an express representation or warranty given by such Indemnitee in any Operative Document to which it is a party not being true or correct as of the date when given or made; |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | arises or is attributable to acts or events occurring after Redelivery; |
|-------------------|-------------------------------------------------------------------------|

----

| (iv)   | immediately arises out of and as a consequence of the assignment, transfer or disposal by such Indemnitee of its interest in the Aircraft, the Operative Documents or the Financing Documents to which it is a party (but without prejudice to the rights of the relevant assignee, transferee or disposee as an Indemnitee hereunder following such assignment, transfer or disposal); |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (v)   | constitutes ordinary and usual operating expenses of such Indemnitee; |
|-----------------|-----------------------------------------------------------------------|

| (vi)   | is expressed to be for the account of Lessor or an Indemnitee under the terms of any Operative Document; |
|------------------|----------------------------------------------------------------------------------------------------------|

| (vii)   | relates to any Indemnitee's Security Interest; or |
|-------------------|---------------------------------------------------|

| (viii)   | is an Expense relating to Taxes (which indemnity is provided for pursuant to Clause 10, Clause 8.6 and the Tax Indemnity Agreement), other than amounts necessary to make payments on an After-Tax Basis and except as expressly otherwise provided in any Operative Document. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.2   | Expenses Following Termination Event |
|-----------------|--------------------------------------|

----

| 9.3   | Mitigation |
|-----------------|------------|

| (a)   | Any sums paid by Lessee to any Indemnitee in respect of any claim under Clause 9.1 shall be paid subject to the condition that, in the event that such Indemnitee is subsequently reimbursed in respect of that claim by any third party, such Indemnitee shall, provided no Relevant Event has occurred and is continuing, promptly pay to Lessee an amount equal to the lesser of the sum paid to it by Lessee and the amount reimbursed to it by the third party, less in either case any Tax payable by Lessor or such Indemnitee in respect of such payment or reimbursement. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10.   | TAXATION |
|-----------------|----------|

| 10.1   | Tax Indemnity |
|------------------|---------------|

| 10.2   | Gross-Up |
|------------------|----------|

----

| (a)   | the sum due from Lessee in respect of such payment shall be increased to the extent necessary to ensure that, after the making of such deduction or withholding, Lessor or the relevant Indemnitee receives on the due date for such payment (and retains, free from any liability in respect of such deduction or withholding save as provided in paragraph (e) below) a net sum equal to the sum which it would have received had no such deduction or withholding been required to be made; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Lessee shall pay to the relevant Taxing authority within the time period allowed by applicable law the full amount of the deduction or withholding (including, but without limitation the full amount of any deduction or withholding from any increased amount paid pursuant to this Clause 10.2); |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Lessee shall indemnify each relevant Indemnitee, on an After-Tax Basis, against any losses or costs incurred by that Indemnitee by reason of any failure of Lessee to make any such deduction or withholding or by reason of any increased payment not being made on the due date for such payment; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Lessee shall promptly deliver to Lessor any receipt, certificates or other proof received from any Taxing Authority, or certified copies thereof, or, if not available, other documents reasonably acceptable to Lessor, evidencing the amounts (if any) paid or payable in respect of any deduction or withholding as aforesaid; and |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | in the event any increased payment is made by Lessee under paragraph (a) of this Clause 10.2 to provide for withholdings and deductions in respect of Taxes that are Indemnitee's Taxes, Lessor or the relevant Indemnitee on whom the Tax is imposed by withholding payments to such person shall, promptly upon written receipt of notice from Lessee, reimburse Lessee for such increased payment. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10.3   | Tax Credits |
|------------------|-------------|

| 10.4   | Contest Rights |
|------------------|----------------|

| (a)   | An Indemnitee shall notify Lessee in writing promptly upon its becoming aware of any written claim being made against such Indemnitee for any Tax for which Lessee is or may be required to indemnify that Indemnitee under any provision of this Clause 10, but the failure to give such notice shall not relieve Lessee of its obligations under this Clause 10 unless the failure precludes Lessee from contesting the Tax under this Clause 10.4. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (b)   | The relevant Indemnitee will, if requested by Lessee in writing (within a reasonable time period prior to the date applicable law requires that a request for a contest be asserted or filed) and at Lessee's cost either (1) contest its liability for (or the amount of) the Tax or (2) permit Lessee to contest the same in its own name if it can do so under applicable law or, if not, in the sole discretion of the Indemnitee, in the name of the relevant Indemnitee (in each such case, subject to the control of the Indemnitee; however, the Indemnitee hereby agrees to keep Lessee and its counsel reasonably informed of the progress of any such contest, to consult with Lessee in good faith regarding the conduct of such contest and, in the Indemnitee’s sole discretion, to participate in such contest); provided that: |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | Lessee provides the relevant Indemnitee (upon written request) with an opinion from independent tax counsel chosen by the Indemnitee and reasonably acceptable to Lessee confirming that there is a reasonable basis (within the meaning of ABA Tax Opinion 85-352, any state or local equivalent, or their successors) for contesting such Tax; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | Lessee unconditionally acknowledges to Lessor and the relevant Indemnitee in writing its liability to indemnify such Indemnitee under the relevant provision of this Clause 10 for the relevant Tax and for any further Tax or Expense that may result from the non-payment and/or contest thereof, excluding in all cases any Indemnitee's Taxes; |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | the proceedings or continuation of such proceedings do not, in the reasonable opinion of the relevant Indemnitee, materially prejudice its reputation or commercial interests; |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iv)   | the relevant Indemnitee may at any time pay the relevant Tax if required to do so by any legally binding judgment, assessment or order or if any non-payment or continued non-payment would expose that Indemnitee to a material risk of civil liability or any risk of criminal liability or expose its assets and/or the Aircraft or Part thereof to a Security Interest (other than a Permitted Security Interest) or a material risk of sale, forfeiture or loss, and upon making such payment such Indemnitee shall be at liberty to exercise its rights against Lessee under the relevant provision of this Clause 10 (without derogation of any rights it may otherwise have under the Operative Documents); |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (v)   | the relevant Indemnitee may at any time pay the relevant Tax if it first waives its rights under the relevant provision of this Clause 10 against Lessee in respect of that Tax; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (vi)   | if the relevant Indemnitees shall agree to a settlement of any contest under this Clause 10.4 without the prior written consent of Lessee for an amount that exceeds the amount (if any) previously agreed by Lessee in writing, then such Indemnitees shall be deemed to have waived its rights to be indemnified under this Clause 10 for such excess amount; |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (vii)   | Lessee shall be currently paying the costs of any contest under this Clause 10.4; |
|-------------------|----------------------------------------------------------------------------------------|

| (viii)   | no Termination Event shall have occurred and be continuing; and |
|--------------------|-----------------------------------------------------------------|

| (ix)   | no Indemnitee shall be required to pursue any contest to the U.S. Supreme Court. |
|------------------|----------------------------------------------------------------------------------|

| (c)   | If any Indemnitee contests a claim for Taxes indemnifiable under Clause 10.1 or 10.2 by making a Tax payment and seeking a refund thereof, then Lessee shall advance to such Indemnitee, on an interest-free basis and After-Tax Basis (and the relevant Indemnitee hereby agrees to repay to Lessee any net Tax savings it recognizes as a result of any imputed interest deduction which may result from any imputed loan as a consequence of such advance), an amount equal to the Taxes and any penalties, additions to Tax, fines and interest thereon (which shall collectively be known, only for the purpose of this Clause 10.4(c), as an "Advance") that are paid by such Indemnitee in connection with such contest.  Any obligation of Lessee under Clause 10.1 and the Indemnitee's obligation to repay the Advance will be satisfied first by set-off against each other and any difference owing by either party will be paid within ten (10) Business Days after a Final Determination of the claim. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (d)   | If any Indemnitee shall obtain a refund of all or any part of such Taxes for which an indemnity was paid by Lessee, provided no Termination Event shall have occurred and be continuing, such Indemnitee shall pay Lessee the amount of such refund as is attributable to the Taxes for which such indemnity was paid, so as to leave that Indemnitee in no worse an after-Tax position than if the Tax liability had never arisen.  If in addition to such refund such Indemnitee shall receive an amount representing interest on the amount of such refund, provided no Termination Event shall have occurred and be continuing, Lessee shall be paid that proportion of such interest which is fairly attributable to Taxes paid with an indemnity payment or Advance by Lessee prior to the receipt of such refund, reduced by Taxes imposed on such Indemnitee on receipt of such refund or interest and increased by any Taxes saved by reason of the deductibility of such payment by the Indemnitee, so as to leave that Indemnitee in no worse an after-Tax position than if the Tax liability had never arisen. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | The rights of each Indemnitee under Clause 10.1 are subject to compliance by it with the terms of this Clause 10.4, save as provided in paragraph (f) below, and the rights of Lessee under this Clause 10 are subject to compliance by it with the terms of Clause 10. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | If a Termination Event has occurred and for so long as the same is continuing, no Indemnitee shall be obligated to comply with the terms of this Clause 10.4 but shall be at liberty to settle any Tax as it sees fit and to exercise its rights under this Clause 10 in respect thereof. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.5   | Mitigation |
|------------------|------------|

| (a)   | In the event of Lessee being required to indemnify any Indemnitee for a Tax hereunder or being required to make a gross-up for a deduction or withholding on account of Tax from any payment to Lessor hereunder, each of Lessee and the Indemnitees shall use commercially reasonable efforts to restructure the transaction so as to mitigate or minimize the relevant Tax liability (including cooperating in completing any procedural formalities necessary for Lessee to obtain authorization to make any payment hereunder without any such deduction or withholding).  Lessee will bear the reasonable costs of any such restructuring.  An Indemnitee shall not be obligated to participate in any such restructuring unless the same leaves that Indemnitee and the other Indemnitees in no worse an after-Tax position than if the restructuring had not occurred. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (b)   | In the event of Lessor or any Indemnitee being liable for Tax in connection with this Agreement or the transactions contemplated hereby (other than a Tax on its overall net income in its home jurisdiction) for which Lessee is not obligated to indemnify Lessor or such Indemnitee under Clause 10.1 or Clause 10.2, each of Lessee and the Indemnitees shall use commercially reasonable efforts to restructure the transaction so as to mitigate or minimize the Tax liability.  The relevant Indemnitee will bear the reasonable costs of any such restructuring.  Lessee shall not be obligated to participate in any such restructuring unless the same leaves Lessee in no worse an after-Tax position than if the restructuring had not occurred. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.6   | Stamp Taxes |
|------------------|-------------|

| 10.7   | Tax on Indemnity Payments |
|------------------|---------------------------|

----

| 10.8   | Reports, Notice, Payment, etc. |
|------------------|--------------------------------|

| 10.9   | Beneficiaries of the Tax Indemnity |
|------------------|------------------------------------|

----

| 11.   | COVENANTS |
|-----------------|-----------|

| (a)   | promptly inform Lessor of any Relevant Event forthwith upon becoming aware thereof; |
|-----------------|-------------------------------------------------------------------------------------|

| (b)   | obtain or cause to be obtained, maintain in full force and effect and comply in all material respects with the conditions and restrictions (if any) imposed on, or in connection with, every Authorization of governmental or public bodies or authorities or courts and do, or cause to be done, all other acts and things, which may from time to time be necessary under any applicable laws in the State of Registration for the continued due performance in all material respects of all its obligations under the Operative Documents; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | at any time during which Parent is not a reporting company for the purposes of the federal securities laws of the USA, not later than 120 days or, if earlier, as soon as the same become publicly available following the end of each financial year, furnish to Lessor Parent's audited consolidated financial statements for that financial year (including a balance sheet, statement of cash flows and profit and loss statement), prepared in English and in accordance with generally accepted accounting principles and practices applicable in the USA, consistently applied and stating in comparative form the respective figures as of the end of and for the preceding financial year; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | at any time during which Parent is not a reporting company for the purposes of the federal securities laws of the USA, not later than 60 days following the end of the first three fiscal quarters of each financial year, furnish to Lessor Parents unaudited consolidated financial statements for such fiscal quarter (including a balance sheet, statement of cash flows and profit and loss statement), prepared in English and in accordance with generally accepted accounting principles and practices applicable in the USA, consistently applied and stating in comparative form the respective figures as of the end of and for the corresponding fiscal quarter for the preceding financial year; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (e)   | promptly upon becoming aware of same, give to Lessor notice in writing of the commencement of any action, suit or proceeding by or before any Government Entity which would be reasonably likely to have a material adverse effect on Lessee's ability to perform its obligations hereunder or under any other Operative Document; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | promptly provide Lessor with such additional information as Lessor may from time to time in writing reasonably request concerning the Aircraft; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| (g)   | if requested by Lessor at any time during which a Termination Event has occurred and is continuing, promptly provide Lessor with a list of the airports to which Lessee (or any Permitted Sublessee then in possession of the Aircraft) routinely operates the Aircraft and details of the status of Lessee's (and any such Permitted Sublessee's) payment of Airport Charges at such airports; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h)   | not do or permit to be done any act or thing which is reasonably likely to jeopardize the rights of Lessor, Owner or any Financing Party under any Operative Document or Security Document in and to the Aircraft, the Insurances or any other collateral relating hereto or thereto; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | not create or permit to subsist any Security Interest (save for Permitted Security Interests) over the Aircraft, any Permitted Sublease or the whole or any part of the Insurances; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (j)   | promptly notify Lessor in the event of any seizure of the Aircraft and use commercially reasonable efforts to procure the immediate release of the Aircraft from such seizure; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (k)   | continue to operate, as a substantial portion of its business, a passenger airline service and preserve its corporate existence (provided that Lessee may merge with or dispose of substantially all of its assets to another wholly-owned subsidiary of Parent so long as in connection with any such merger or disposition, Lessor, Owner and Owner Participant shall have received from Parent a confirmation (in form and substance reasonably satisfactory to Lessor, Owner and Owner Participant) confirming that the obligations of the Parent under the Parent Guaranty remain in full force and effect with regards to the obligations of the surviving entity of such merger or disposition); |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (l)   | not at any time: |
|-----------------|------------------|

| (i)   | represent or hold out Lessor, Owner, Owner Participant or any other Financing Party as carrying goods or passengers on the Aircraft or as being in any way connected or associated with any operation or carriage (whether for hire or reward or gratuitously) which may be undertaken by Lessee (except for any indicia of ownership by any such party which Lessee shall be required or requested to place on the Aircraft); or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | pledge the credit of Lessor, Owner, Owner Participant or any other Financing Party; |
|------------------|-------------------------------------------------------------------------------------|

| (m)   | pay and discharge or cause to be paid and discharged when due and payable or make adequate provision by way of security or otherwise for all debts, damages, claims and liabilities which have given or is reasonably likely give rise to a Security Interest (except a Permitted Security Interest or an Indemnitee's Security Interest) over the Aircraft, any Engine, any Propeller or any Part; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (n)   | not attempt, or hold itself out as having any power, to sell or otherwise dispose of the Aircraft, any Engine, Propeller or Part, except in connection with any pooling or interchange arrangements permitted hereby; and |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (o)   | not do or permit to be done anything which may reasonably be expected to expose the Aircraft, any Engine, any Propeller or any Part to material penalty, forfeiture, impounding, detention, appropriation, damage (other than ordinary wear and tear) or destruction and, without prejudice to the foregoing, if any such material forfeiture, impounding, detention or appropriation, occurs, give Lessor notice and use commercially reasonable efforts to procure the prompt release of the Aircraft, any Engine, Propeller or Part, as the case may be except in each case with respect to the occurrence of any event described in paragraphs (d) or (e) of the definition of Total Loss for a number of days fewer than the number referenced in such paragraph. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 12.   | WET LEASING AND SUBLEASING |
|-----------------|----------------------------|

| 12.1   | Possession of the Aircraft |
|------------------|----------------------------|

| 12.2   | Subleasing |
|------------------|------------|

| (a)   | the term of the intended Permitted Sublease (including extension rights) is a period not more than the remainder of the Lease Term; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | such Permitted Sublease does not involve any change to the State of Registration except as permitted by Clause 16.2; |
|-----------------|----------------------------------------------------------------------------------------------------------------------|

| (c)   | the rights of the Permitted Sublessee under such Permitted Sublease are at all times expressly subject to and subordinate to the rights of Lessor hereunder and to the respective interests of Owner, Owner Participant and the Financing Parties in the Aircraft, and the terms of the Permitted Sublease shall provide for the leasing of the Aircraft thereunder to cease if the leasing of the Aircraft under this Agreement terminates for any reason and shall not permit any sub-subleasing of the Aircraft; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Lessee provides a copy of such Permitted Sublease to Lessor as soon as reasonably practicable after its execution; |
|-----------------|--------------------------------------------------------------------------------------------------------------------|

| (e)   | (if recommended by local counsel in the State of Registration) Lessee delivers to Lessor a duly executed Deregistration Power of Attorney granted by such Permitted Sublessee; and |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | (if the State of Registration is not the USA and has signed and ratified or acceded to the Cape Town Convention), Lessee delivers to Lessor a duly executed IDERA granted by such Permitted Sublessee and procures that the same is filed with the Aviation Authority. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 12.3   | Wet Leases |
|------------------|------------|

| (a)   | the term of the Wet Lease does not exceed six months (or if shorter, the remainder of the Lease Term) except with Lessor's prior written consent; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | the Aircraft shall remain registered with the Aviation Authority; |
|-----------------|-------------------------------------------------------------------|

| (c)   | the Wet Lease shall provide for the chartering of the Aircraft thereunder to cease if the leasing of the Aircraft under this Agreement terminates for any reason; and |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | the rights of the lessee under the Wet Lease are at all times expressly subject to and subordinate to, and do not conflict in any respect with (or give such lessee any rights greater than the rights of Lessee under), the terms of this Agreement and the rights of Lessor hereunder and the respective interests of Owner, Owner Participant and the Financing Parties in the Aircraft. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.4   | Lessee Always Liable |
|------------------|----------------------|

| 12.5   | Expenses |
|------------------|----------|

----

| 13.   | GENERAL OPERATION OF AIRCRAFT |
|-----------------|-------------------------------|

| 13.1   | General Operation |
|------------------|-------------------|

| 13.2   | Storage |
|------------------|---------|

----

| 13.3   | Permitted Operations |
|------------------|----------------------|

| 13.4   | Airworthiness Certificate |
|------------------|---------------------------|

| 13.5   | Training Flights |
|------------------|------------------|

| 13.6   | Operation Outside Scope of Insurance |
|------------------|--------------------------------------|

----

| 13.7   | Compliance |
|------------------|------------|

| 14.   | MAINTENANCE, REPAIR, OVERHAUL AND OPERATION |
|-----------------|---------------------------------------------|

| 14.1   | General Obligation |
|------------------|--------------------|

| (a)   | Lessee shall, at its cost and expense, ensure that an Approved Maintenance Performer (and only an Approved Maintenance Performer): |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | services, repairs, maintains, modifies, overhauls and tests the Aircraft, the Engines, the Propellers and all Parts (1) so as to keep the Aircraft, Engines, Propellers and all Parts serviceable and in good operating condition and in any event in as good as condition as when delivered hereunder, ordinary wear and tear excepted, (2) so as to keep the Aircraft in the condition as may be necessary to enable the Airworthiness Certificate of the Aircraft to be maintained in good standing at all times under the laws of the State of Registration, and (3) in compliance with the relevant manufacturer's requirements and the Approved Maintenance Program; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | maintains in accordance with Clause 14.9 all records, logs and other materials required by the Aviation Authority to be maintained with respect to the Aircraft; and |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | promptly furnishes to Lessor such information as may be required to enable Lessor to file any reports required to be filed by Lessor with any Government Entity in the State of Registration or any other location where the Aircraft may from time to time be based because of Lessor's interest in the Aircraft. |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Lessee shall provide a true and complete copy of the Approved Maintenance Program to Lessor before Delivery and shall not thereafter modify the Approved Maintenance Program in any material respect without the prior written consent of Lessor unless such modification either: |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (i)   | (1) is approved by the Aviation Authority, (2) does not result in the interval for the conduct of any overhaul on the Airframe, any Engine, any Propeller, or Part being extended unless, in each case, such interval is derived from the Maintenance Planning Document or the recommendations of the applicable manufacturer; or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | is required by law or by the Aviation Authority. |
|------------------|--------------------------------------------------|

| (c)   | To the extent that the cost of repairs required as a result of any of the following exceeds the Threshold Amount, Lessee shall notify Lessor promptly of all details relating to (i) any loss, damage or destruction to the Aircraft, or any part thereof, that affects the airworthiness of the Aircraft, and (ii) any theft, damage, incidents or accidents to the Aircraft, or any part thereof. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Without limiting any of the foregoing, Lessee shall: |
|-----------------|------------------------------------------------------|

| (i)   | cause the Aircraft, the Engines and the Propellers to be maintained, modified and used, in all material respects in the same manner and with the same care as used by or on behalf of Lessee with respect to similar aircraft, engines and propellers owned or operated by or on behalf of Lessee; and |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | not (and shall not permit any Permitted Sublessee to) discriminate in a manner in any way materially adverse to the interests of Lessor, Owner, Owner Participant or any relevant Financing Party in the Aircraft (as compared to other aircraft of the same type owned or operated by or on behalf of Lessee) with respect to its use, operation, maintenance or modification status (including without limitation with respect to compliance with Alert Service Bulletins on similar aircraft). |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 14.2   | Replacements of Parts |
|------------------|-----------------------|

| (a)   | Lessee shall, at its cost and expense, promptly procure the replacement of all Parts which may from time to time become worn out, lost, stolen, destroyed, seized, confiscated, damaged beyond repair or permanently rendered unfit for use for any reason whatsoever.  In addition, in the ordinary course of maintenance, service, repair, overhaul or testing, Lessee may at its own cost and expense remove any Parts, whether or not worn out, lost, stolen, destroyed, seized, confiscated, damaged beyond repair or permanently rendered unfit for use; provided that Lessee shall procure the replacement of such Parts as promptly as practicable.  All replacement parts shall be free and clear of all Security Interests (except Permitted Security Interests). |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | All Parts at any time removed from the Airframe or any Engine or Propeller shall remain the property of Owner, no matter where located, until such time as such Parts shall be replaced by parts which have been incorporated or installed in or attached to the Airframe or such Engine or Propeller in compliance with the requirements for replacement parts specified herein.  Immediately upon any replacement part becoming incorporated or installed in or attached to, the Airframe or an Engine or Propeller as above provided, without further act (i) title to such replacement part shall thereupon vest in Owner, free and clear of all Security Interests (other than Permitted Security Interests), (ii) such replacement part shall become subject to this Agreement and any other applicable Operative Document and be deemed part of the Airframe or such Engine or Propeller, as the case may be, for all purposes hereof to the same extent as the Part originally incorporated or installed in or attached to the Airframe or such Engine or Propeller, and (iii) title to the removed Part shall thereupon vest in Lessee, free and clear of all rights of Lessor and Owner, and shall no longer be deemed a Part hereunder. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Lessee will ensure that no replacement part is installed on an Aircraft unless such part is of substantially equivalent value, utility and remaining useful life as the Part it replaces. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 14.3   | Pooling of Parts |
|------------------|------------------|

| (a)   | Lessee may allow any Part removed from the Airframe or an Engine or Propeller as provided in Clause 14.2(a) to be subjected to a normal pooling arrangement customary in the airline industry that is entered into in the ordinary course of Lessee's business (a "Pooling Arrangement"); provided that a part replacing such removed Part shall be incorporated or installed in or attached to the Airframe or such Engine or Propeller in accordance with Clause 14.2 as promptly as possible after the removal of such removed Part. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | In addition, subject to Clause 14.3(a), any replacement part when incorporated or installed in or attached to the Airframe or any Engine or Propeller in accordance with Clause 14.2 may be owned by a third party subject to a Pooling Arrangement; provided that Lessee, at its cost and expense, as promptly thereafter as possible and in any event within sixty (60) days either (i) causes title to such replacement part to vest in Owner in accordance with Clause 14.2(a) by acquiring title thereto for the benefit of, and transferring such title to, Owner free and clear of all Security Interests (other than Permitted Security Interests), or (ii) procures the replacement of such replacement part by incorporating or installing in or attaching to the Airframe or such Engine or Propeller a further replacement part owned by Lessee free and clear of all Security Interests (other than Permitted Security Interests) and causing title to such further replacement part to vest in Owner in accordance with Clause 14.2(a). |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Lessee shall procure that, at or prior to Redelivery, Owner has title to all parts installed on the Airframe or any Engine or Propeller at Redelivery. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.4   | Alterations, Modifications and Additions |
|------------------|------------------------------------------|

| (a)   | Lessee shall procure that all alterations, modifications and additions to the Airframe and the Engines and Propellers are made (in each case, by an Approved Maintenance Performer) as may be required from time to time (i) by the Airframe Manufacturer or the Engine Manufacturer (ii) to comply with any applicable Airworthiness Directives or (iii) to comply with the requirements of the Aviation Authority or other Government Entity having jurisdiction over the Aircraft. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (b)   | Lessee may, at its own cost, from time to time make or permit to be made by an Approved Maintenance Performer such alterations and modifications in and additions to the Airframe and any Engine or Propeller as Lessee may deem desirable in the proper conduct of its business; provided that (1) such modifications are incorporated in accordance with a Service Bulletin approved by the Aviation Authority and the FAA, (2) no such alteration, modification or addition materially and adversely alters the specification or structure of the Aircraft or in any other way diminishes the value, utility or remaining useful life of the Airframe or such Engine or Propeller or impairs the condition or airworthiness thereof below the value, utility, remaining useful life, condition and airworthiness thereof immediately prior to such alteration, modification or addition, assuming the Airframe or such Engine or Propeller was then of the value, utility and remaining useful life and in the condition and airworthiness required to be maintained by the terms of this Agreement and (3) Lessee shall not, without Lessor's prior written consent (which shall not be unreasonably withheld, conditioned or delayed), make or permit to be made any Major Modification (other than any Major Modification of the type described in clause (b) of the definition thereof). |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | All regulatory approvals and all designs, plans, diagrams, drawings and data used in accomplishing Major Modifications shall, upon commencement of the relevant Major Modifications, form part of the Aircraft Documentation and Lessee shall, at Lessor's reasonable request from time to time, provide copies of the same to Lessor. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (d)   | Title to all Parts incorporated or installed in or attached or added to the Airframe or any Engine or Propeller as the result of any modification, alteration or addition described in this Clause 14.4 shall, without further act, vest in Owner; provided that so long as, other than in connection with a Mandatory Modification, no Termination Event shall have occurred and be continuing, at any time during the Lease Term, Lessee may remove any such Part from the Airframe or such Engine or Propeller; provided, further, that (i) such Part is in addition to, and not in replacement of or in substitution for, any Part originally incorporated or installed in or attached to the Airframe or such Engine or Propeller at Delivery; (ii) such Part is not required to be incorporated or installed in or attached or added to the Aircraft or such Engine or Propeller pursuant to this Agreement and (iii) such Part can be removed from the Airframe or such Engine or propeller without causing any material damage thereto and without diminishing or impairing the value, utility, remaining useful life, condition or airworthiness which the Airframe or such Engine or Propeller would have had at such time had such modification, alteration or addition not occurred.  Upon the removal of any such Part as above provided, title thereto shall, without further act, vest in Lessee and such Part shall no longer be a Part.  Any Part not so removed prior to Redelivery shall remain the property of Owner.  Neither Lessor nor Owner shall bear any liability or cost for any such modification, alteration or addition, or for any grounding or suspension of certification of the Airframe or any Engine or Propeller in connection therewith or for loss of revenue resulting from such grounding or suspension. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | Lessee shall not modify the Aircraft in any way that would cause it no longer to comply with (or shall, before Redelivery, reinstate the Aircraft so that it would comply with) FAA FAR Part 121 with regard to maintenance, inspection and airworthiness certification requirements. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.5   | Airworthiness Directives |
|------------------|--------------------------|

| 14.6   | Removal of Engines and Propellers |
|------------------|-----------------------------------|

| 14.7   | Installation of Engines or Propellers on other Aircraft |
|------------------|---------------------------------------------------------|

| (a)   | Lessee may allow an Engine or Propeller removed from the Airframe to be installed on any other airframe of the same type in Lessee's fleet but only if: |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | Lessee has title to such other airframe and such airframe is free and clear of all Security Interests (except Permitted Security Interests); or |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (ii)   | such other airframe is leased to Lessee or owned by Lessee subject to a conditional sale or other security agreement; provided that (A) such airframe is free and clear of all Security Interests except (1) the rights of the parties to the lease or conditional sale or other security agreement covering such airframe and (2) Permitted Security Interests and (B) there shall be in effect a written agreement of the lessor or secured party of such airframe (which may be contained in the lease, conditional sale or security agreement covering such airframe) substantially to the effect of the agreement of Lessor set forth in Clause 14.7(b) whereby such lessor or secured party effectively and expressly agrees that neither it nor its successors or assigns will acquire or claim any right, title or interest in any Engine or Propeller by reason of such Engine or Propeller being installed on such airframe at any time while such Engine or Propeller is subject to this Agreement.  To evidence the foregoing, Lessee shall at Lessor's request provide Lessor with an officer's certificate as to the matters set forth in this Clause 14.7(a)(ii).  If any of the respective interests of Lessor, Owner, Owner Participant or any relevant Financing Party in an Engine or Propeller are impaired or otherwise adversely affected by virtue of installation on any such other airframe, Lessee shall promptly reinstall such Engine or Propeller on the Airframe, failing which such impairment or adverse effect will be deemed an Engine Loss or Propeller Loss (as applicable) and Lessee shall comply with the provisions of Clause 19.8 or Clause 19.9 (as applicable) in respect thereof. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | If Lessee shall have received from the lessor, seller or secured party of any airframe leased to Lessee or owned by Lessee subject to a conditional sale or other security agreement a written agreement complying with Clause 14.7(a)(ii) hereof (which agreement may be contained in the lease, conditional sale or security agreement relating to such airframe), and the lease, conditional sale or security agreement covering such airframe also covers an engine or engines or propeller or propellers owned by the lessor under such lease or subject to a security interest in favor of the secured party under such conditional sale or security agreement, Lessor hereby acknowledges (and shall, upon request, procure that Owner, Owner Participant and any relevant Financing Party shall acknowledge) for the benefit of such lessor, seller or secured party that neither Lessor, Owner, Owner Participant nor any relevant Financing Party will acquire or claim, as against such lessor, seller or secured party, any interest in any such engine or propeller as the result of such engine or propeller being installed on the Airframe at any time while such engine or propeller is subject to such lease, conditional sale or security agreement and owned by such lessor or seller or subject to a security interest in favor of such secured party. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 14.8   | Information and Inspection |
|------------------|----------------------------|

----

| 14.9   | Documentation |
|------------------|---------------|

| (a)   | During the Lease Term, Lessee shall procure that the Aircraft Documentation is maintained: |
|-----------------|--------------------------------------------------------------------------------------------|

| (i)   | in the English language and uniquely for the Aircraft; |
|-----------------|--------------------------------------------------------|

| (ii)   | current and up-to-date (through subscription to the relevant manufacturer's update or revision service or otherwise); |
|------------------|-----------------------------------------------------------------------------------------------------------------------|

| (iii)   | in conformity with the rules of the Aviation Authority and the FAA and with normal practices of first class commercial air carriers; and |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------|

| (iv)   | so that such documentation: |
|------------------|-----------------------------|

| (1)   | accurately records the amount of time consumed and/or the cycles of use (as appropriate) of the Airframe, each Engine, each Propeller and all Parts (including the APU) whether or not time or cycle limited and all work performed thereon; and |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | contains accurate back-to-birth records of each Life Limited Part and each time-controlled part. |
|-----------------|--------------------------------------------------------------------------------------------------|

| (b)   | Following any repair which is carried out other than in accordance with instructions contained in the Structural Repair Manual, Lessee shall ensure that there is obtained and kept with the Aircraft Documentation an approval issued in accordance with the Airframe Manufacturer's repair scheme and the requirements of the FAA. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Any Aircraft Documentation not already owned by Owner, when and as created or obtained by (or on behalf of) Lessee, shall thereupon become the property of Owner. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Lessee shall procure that all Aircraft Documentation is kept in its possession or in the possession of the Approved Maintenance Performer, and shall not permit any other person (other than a person entitled to have possession or control of the Aircraft under the terms of this Agreement) to have possession of or control over the Aircraft Documentation except with the prior written consent of Lessor. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | Lessee will indemnify Lessor on an After-Tax Basis (i) for all Overhaul costs and Life Limited Part replacement costs resulting from the maintenance of inadequate Aircraft Documentation by Lessee during the Lease Term, (ii) for all re-certification costs incurred in respect of any Parts resulting from the failure by Lessee to maintain a FAA 8130-3 tag in respect of each Part, (iii) for all costs associated with replacing Scab Patches or repairing damage that has inadequate aircraft repair scheme approval data, and (iv) for the cost of remedying any modifications that have not been made in accordance with this Agreement. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (f)   | Lessee will permit Lessor to copy and scan the technical records into electronic format at reasonable intervals. |
|-----------------|------------------------------------------------------------------------------------------------------------------|

| 15.   | RETURN COMPENSATION PAYMENTS |
|-----------------|------------------------------|

| 16.   | TITLE AND REGISTRATION |
|-----------------|------------------------|

| 16.1   | Registration of Aircraft |
|------------------|--------------------------|

| 16.2   | Changes to State of Registration |
|------------------|----------------------------------|

| (a)   | Lessee may, from time to time during the Lease Term (in connection with a Permitted Sublease) register the Aircraft in a jurisdiction other than the initial State of Registration approved in advance and in writing by Lessor, which approval shall not be unreasonably withheld provided that Lessor is satisfied that the airworthiness standards and the recognition, validity and enforceability of the interests of lessors, owners and secured creditors in leased aircraft in that jurisdiction are satisfactory. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (b)   | Before effecting any change to the State of Registration, Lessee shall deliver to Lessor a legal opinion from local counsel acceptable to Lessor in the new State of Registration addressed to Lessor, Owner, Owner Participant and any relevant Financing Party and in form and substance satisfactory to Lessor giving details of the relevant laws and procedures in that jurisdiction and confirming that: |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | this Agreement and each Security Document remains valid and enforceable in accordance with its terms notwithstanding such change in registration and the rights and interests of Lessor, Owner, Owner Participant and Security Agent in the Aircraft and under the Operative Documents and the Financing Documents (including without limitation their respective rights to repossess and export the Aircraft from such jurisdiction upon a termination of the leasing of the Aircraft hereunder) remain valid and enforceable and would be recognized in that jurisdiction; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | title to the Aircraft shall remain vested in Owner; and |
|------------------|---------------------------------------------------------|

| (iii)   | the rights conferred on the Permitted Sublessee pursuant to such Permitted Sublease are subject and subordinate to the respective rights of Lessor and Owner under the Operative Documents and of the Financing Parties under the Security Documents. |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | To the extent that local counsel in the proposed State of Registration recommends any changes or additions to the Operative Documents or the Security Documents (and/or the execution of new Operative Documents or Security Documents in a particular form or language) in order to give the legal opinion required by Clause 16.2(b), Lessee shall co-operate with Lessor in procuring the same and shall bear all costs, including legal expenses, incurred by Lessor, Owner and the Financing Parties in connection with the preparation, negotiation, translation, notarization and registration or filing thereof. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Before effecting any change to the State of Registration, Lessee (at Lessee's expense) shall deliver to Lessor an opinion of independent tax counsel chosen by Lessee and reasonably acceptable to Lessor that such change in the State of Registration will not have any adverse Tax consequences for any of the Indemnitees or an indemnity for any such adverse Tax consequences in form and substance reasonably acceptable to the Lessor and other Indemnitees. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 16.3   | Registration of Interest of Financing Parties |
|------------------|-----------------------------------------------|

| 16.4   | Aviation Authority Acknowledgement |
|------------------|------------------------------------|

| 16.5   | Cape Town Convention |
|------------------|----------------------|

| (a)   | co-operate in connection with the execution and filing of any applications, registrations, amendments or discharges with the International Registry, as reasonably requested by Lessor, Owner or any Financing Party from time to time to ensure the validity, enforcement and first priority of the Contracts of Sale and International Interests constituted by this Agreement, the Sale Agreement and the other Operative Documents; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | consent to the registration of the Contracts of Sale and International Interests as required by Lessor, Owner or any Financing Party at the International Registry and will not register any conflicting interests (whether or not taking priority over the Contracts of Sale or International Interests) at the International Registry without the prior written consent of Lessor; and |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (c)   | maintain its registration as a transacting user entity with the International Registry and shall not revoke such registration without the prior written consent of the holder of the relevant Contract of Sale or International Interest, in each of the foregoing, at the cost of the Lessee, except to the extent that the relevant application, registration or deregistration is in respect of an interest of the Security Agent or any Finance Party created in connection with any financing of the Aircraft after Delivery, in which case such cost shall be incurred by the Lessor. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.   | IDENTIFICATION PLATES |
|-----------------|-----------------------|

| 18.   | INSURANCE |
|-----------------|-----------|

| 18.1   | Obligation to Insure |
|------------------|----------------------|

----

| (a)   | (i) All-risk ground, flight and ingestion aircraft hull insurance for not less than the Agreed Value covering the Aircraft, (ii) all risk insurance on a full replacement cost basis with respect to spares, including the Engines, Propellers and components while not installed in the Aircraft, and (iii) hull and spares war risk and allied perils insurance covering the perils excluded by the War, Hijacking and Other Perils Exclusion Clause (AVN 48B), other than paragraph (b) thereof, and in the case of hull war, for the Agreed Value, on Form LSW 555B and including confiscation by the government of the State of Registration (or substantially similar insurance or indemnity provided by the U.S. Government, it being agreed that the form of FAA war risk insurance policy in effect as of June 1, 2011 is acceptable) , and in the case of spares, including the Engines, Propellers and components while not installed in the Aircraft, on a full replacement cost basis.  All hull insurance may be subject to a deductible (other than in the case of a Total Loss) not to exceed the Permitted Deductible per occurrence. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Comprehensive aircraft third party, passenger, cargo, products, mail and aviation and airline general third party legal liability insurance, including war and allied perils (being all perils excluded by the War, Hijacking and Other Perils Exclusion Clause (AVN 48B), other than paragraph (b) thereof), in an amount that is not less than the Agreed Liability Coverage for any one occurrence and in the aggregate for products liability (or, in the case of war and allied perils coverage only, substantially similar insurance or indemnity provided by the U.S. Government, it being agreed that the form of FAA war risk insurance policy in effect on June 1, 2011, is acceptable). |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 18.2   | Hull Insurances |
|------------------|-----------------|

| 18.3   | Liability Insurances |
|------------------|----------------------|

| (a)   | include and insure (to the extent of the risks covered by the policies) the indemnity provisions of Clause 9.1; |
|-----------------|-----------------------------------------------------------------------------------------------------------------|

| (b)   | for a period of two years or until the next major Airframe check (whichever is the shorter period) after the Lease Termination Date, continue to name each Indemnitee as an additional insured; and |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | for a period of two years or until the next major Airframe check (whichever is the shorter period) after the date of any transfer by Lessor or Owner Participant pursuant to Clause 26.1 or 26.2, respectively, continue to name the transferring Lessor or Owner Participant, as applicable (and the relevant Owner, Owner Participant and Financing Parties and other related Indemnitees) as additional insured. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 18.4   | General Provisions |
|------------------|--------------------|

----

| 18.5   | Insurance Certificates |
|------------------|------------------------|

| 18.6   | Assignee of Interests |
|------------------|-----------------------|

| 18.7   | Information regarding Insurances |
|------------------|----------------------------------|

| 18.8   | Currency of Insurances |
|------------------|------------------------|

----

| 18.9   | Failure to Insure |
|------------------|-------------------|

| (a)   | upon giving notice thereof to Lessee, to pay any premiums due or to effect or maintain such insurance or otherwise remedy such failure in such manner as Lessor or Owner Participant or, if applicable, any Financing Party considers appropriate (and Lessee shall upon demand reimburse Lessor, Owner Participant or if applicable, the relevant Financing Party in full for any amount so expended in that connection); and/or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | at any time while such failure is continuing, to require the Aircraft to remain at any airport or (as the case may be), subject to the Aircraft being adequately insured, proceed to and remain at any airport designated by Lessor, until such failure is remedied to Lessor's satisfaction. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.10   | Lessor's Right to Insure |
|-------------------|--------------------------|

| 18.11   | Changes to Insurance Practice |
|-------------------|-------------------------------|

----

| 18.12   | Self-Insurance |
|-------------------|----------------|

| 18.13   | Reinsurance |
|-------------------|-------------|

| (a)   | be placed with a reinsurer of recognized responsibility and good repute, specializing in and normally participating in aviation insurance in the international insurance market; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | be on the same terms as the primary insurance required hereunder; |
|-----------------|-------------------------------------------------------------------|

| (c)   | be at levels of not less than 100% of insurances required to be maintained pursuant to Clause 18.1; |
|-----------------|-----------------------------------------------------------------------------------------------------|

| (d)   | contain a "cut through" clause providing that, in the event of any claim arising under such reinsurance, the reinsurer shall (in lieu of payment to the primary insurer or its successors) pay to the relevant Indemnitee that portion of any claim which the reinsurer would otherwise be liable to pay the primary insurer or its successors; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (e)   | provide for payment to be made directly to the relevant Indemnitee notwithstanding (a) any bankruptcy, insolvency, liquidation or dissolution of the primary insurer and/or (b) that the primary insurer has made no payment under the primary policies; and |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | be evidenced by a reinsurance certificate and supported by a broker's letter of undertaking reasonably satisfactory to Lessor. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------|

| 19.   | LOSS AND DAMAGE |
|-----------------|-----------------|

| 19.1   | Risk of Loss and Damage |
|------------------|-------------------------|

| 19.2   | Notification of Loss and Damage |
|------------------|---------------------------------|

| (a)   | Lessee shall give Lessor immediate notice in writing of any such occurrence as is referred to in Clause 19.1 or any other occurrence of whatever kind which shall deprive Lessee of the use, possession or enjoyment of the Aircraft. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Lessee shall supply to Lessor all necessary information, documentation and assistance which may reasonably be required by Lessor in connection with making any claim under the Insurances. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.3   | Payment on Total Loss |
|------------------|-----------------------|

| (a)   | If a Total Loss occurs in respect of the Airframe (with or without the Engines or Propellers) during the Lease Term, Lessee shall pay, or procure that the insurer pays, to Lessor (or to any Financing Party named as loss payee under the Insurances) as soon as reasonably practicable but in any event within sixty (60) days after the Total Loss Date or, if earlier, the date such insurance proceeds are received, the Agreed Value together with all Rent and other amounts then due and payable under the Operative Documents.  Any insurance proceeds payable following a Total Loss under the Insurances in excess of the Agreed Value may be paid to Lessee or its order. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (b)   | The Net Total Loss Proceeds received by Lessor (or such other person as may be designated as loss payee) from Lessee or the insurer pursuant to this Clause 19 shall be applied as follows: |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | first, in discharge of any unpaid Rent and any other amounts (other than the Agreed Value) due and payable by Lessee but unpaid; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | second, in discharge of the Agreed Value; and |
|------------------|-----------------------------------------------|

| (iii)   | third, payment of the balance, if any, to Lessee. |
|-------------------|---------------------------------------------------|

| 19.4   | Co-operation regarding Claims |
|------------------|-------------------------------|

| 19.5   | Payment of Rent on Total Loss |
|------------------|-------------------------------|

| 19.6   | Repairable Damage |
|------------------|-------------------|

----

| 19.7   | Payment of Repairs |
|------------------|--------------------|

| 19.8   | Engine Loss |
|------------------|-------------|

----

| 19.9   | Propeller Loss |
|------------------|----------------|

----

| 19.10   | General Replacement Provisions |
|-------------------|--------------------------------|

----

| 20.   | REQUISITION |
|-----------------|-------------|

| 20.1   | Requisition for Hire |
|------------------|----------------------|

----

| 20.2   | Entitlement to Requisition Compensation |
|------------------|-----------------------------------------|

| 20.3   | Condition at end of Requisition |
|------------------|---------------------------------|

| 21.   | REDELIVERY |
|-----------------|------------|

| 21.1   | Redelivery of the Aircraft |
|------------------|----------------------------|

| 21.2   | Failure to Return Aircraft |
|------------------|----------------------------|

----

| 21.3   | Co-operation with Remarketing |
|------------------|-------------------------------|

| 22.   | TERMINATION OF LEASE |
|-----------------|----------------------|

| 22.1   | Lease Termination Date |
|------------------|------------------------|

| (a)   | a Total Loss of the Aircraft during the Lease Term and payment of the Agreed Value to Lessor pursuant to Clause 19.3, with all other obligations of Lessee under this Agreement and each other Operative Document having been performed; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (b)   | Lessee's return of the Aircraft to Lessor on the Expiration Date or, at the option of Lessor, a later date determined pursuant to Clause 21.2(a), in either case with all obligations of Lessee under this Agreement and each other Operative Document having been performed; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Lessee's purchase of the Aircraft pursuant to Clause 5.6 or 5.7; and |
|-----------------|----------------------------------------------------------------------|

| (d)   | the termination of this Agreement pursuant to Clause 22.2; and |
|-----------------|----------------------------------------------------------------|

| (e)   | the termination of this Agreement following the occurrence of a Termination Event pursuant to or in accordance with Clause 24.1. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------|

| 22.2   | Termination on Illegality |
|------------------|---------------------------|

----

| 22.3   | Continuing Indemnities |
|------------------|------------------------|

| 23.   | TERMINATION EVENTS |
|-----------------|--------------------|

| (a)   | Lessee fails to make any payment of (i) Rent, Agreed Value or Return Compensation Payments within *** days after the due date therefor or (ii) any other amount due and payable by Lessee under this Agreement or any other Operative Document to which it is a party within ten Business Days after the due date therefor; or |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | the Insurances are not obtained and maintained in full force and effect in accordance with the provisions of Clause 18 or a notice of cancellation in respect of the Insurances is given and not rescinded before such cancellation becomes effective; provided that no Termination Event shall occur under this paragraph (b) unless Lessee fails to procure the renewal or reinstatement of the Insurances in compliance with the terms hereof within ninety (90) days after such cancellation and the Aircraft is, during the period before renewal or reinstatement of the Insurances, grounded, not operated and insured for ground risks for an amount (in respect of hull claims) that is not less than the Agreed Value; or |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (c)   | Lessee fails to return the Aircraft as and when required to do so under Clause 21 within *** days after the Lease Termination Date (provided that Lessee is working diligently and in good faith to return the Aircraft within such *** day period) or fails duly to perform or comply with any of the obligations expressed to be assumed by it in Clauses 12.1 or 26.5; or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | other than those referred to in paragraphs (a), (b) and (c) of this Clause 23, Lessee or Parent commits any material breach of or omits to observe in any material respect any of the other obligations or undertakings expressed to be assumed by it under any Operative Document and such failure continues for a period of thirty days after written notice of such failure has been given to Lessee or Parent; provided, however, that such grace period shall not apply if such breach could reasonably be expected to give rise to any sale, forfeiture or other loss of the Aircraft or any interest therein; or |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | any representation or warranty made or deemed to be made by Lessee or Parent in any Operative Document (other than the Tax Indemnity Agreement) to which it is a party is or proves to have been incorrect in any material respect when made and Lessee's ability to comply with its obligations under this Agreement, and/or Lessor's right, title and interest to the Aircraft under this Agreement, are thereby materially and adversely affected and such circumstances continue unremedied for thirty days after written notice thereof has been given to Lessee; or |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | Lessee or Parent suspends payment of its debts generally as they fall due or proposes or enters into any composition or other arrangement for the benefit of its creditors generally or any class of creditors or proceedings are commenced in relation to Lessee or Parent under any law, regulation or procedure relating to reconstruction or readjustment of debts; or |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g)   | Lessee or Parent is, or is deemed for the purposes of any applicable law to be, insolvent or unable to pay its debts as they mature or Lessee or Parent admits in writing its inability to pay its debts as they mature; or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (h)   | Lessee or Parent consents to the appointment of a custodian, receiver, trustee, judicial manager or liquidator of itself or all or any material part of Lessee's or Parent's property or Lessee's or Parent's consolidated property, or Lessee or Parent makes a general assignment for the benefit of creditors, or Lessee or Parent files a voluntary petition in bankruptcy or a voluntary petition seeking reorganization in a proceeding under any bankruptcy or insolvency laws (as now or hereafter in effect) or any answer admitting the material allegations of a petition filed against Lessee or Parent in any such proceeding, or Lessee or Parent by voluntary petition, answer or consent seeks relief under the provisions of any other bankruptcy, insolvency or other similar law providing for the reorganization or winding-up of corporations, or provides for an agreement, composition, extension or adjustment with its creditors, or any corporate action (including, without limitation, any board of directors or shareholder action) is taken by Lessee or Parent in furtherance of any of the foregoing, whether or not the same is fully effected or accomplished; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | an order, judgment or decree is entered by any court appointing, without the consent of Lessee or Parent, a custodian, receiver, trustee, judicial manager or liquidator of Lessee or Parent, or of all or any material part of Lessee's or Parent's property or Lessee's or Parent's consolidated property is sequestered, and any such order, judgment or decree of appointment or sequestration remains in effect, undismissed, unstayed or unvacated for a period of ninety (90) days after the date of entry thereof or at any time an order for relief is granted; or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (j)   | an involuntary petition against Lessee or Parent in a proceeding under any applicable insolvency laws (as now or hereafter in effect) is filed and is not withdrawn or dismissed within ninety (90) days thereafter or at any time an order for relief is granted in such proceeding, or if, under the provisions of any law providing for reorganization or winding-up of companies which may apply to Lessee or Parent, any court of competent jurisdiction assumes jurisdiction over, or custody or control of, Lessee or Parent or of all or any material part of Lessee's or Parent's property, or Lessee's or Parent's consolidated property and such jurisdiction, custody or control remains in effect, unrelinquished, unstayed or unterminated for a period of ninety days or at any time an order for relief is granted in such proceeding; or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (k)   | a moratorium is declared by Lessee or Parent in respect of all or substantially all of its Indebtedness; or |
|-----------------|-------------------------------------------------------------------------------------------------------------|

| (l)   | Lessee or Parent shall have failed to pay when due (or within any applicable grace period) any Indebtedness that exceeds, in the aggregate, ***; or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| (m)   | except as permitted pursuant to Clause 11(k) of this Agreement, Lessee or Parent discontinues business or sells or otherwise disposes of all or substantially all of its assets or voluntarily suspends all or substantially all of its commercial airline operations (or publicly announces an intention to do any of the foregoing) or, in the case of Lessee only, ceases to be a Certificated Air Carrier; or |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (n)   | Lessee or any other person claiming through Lessee challenges the existence, validity, enforceability or priority of the rights of Owner as owner of the Aircraft or the rights of Lessor, Owner Participant or any Financing Party in and to the Aircraft; or |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (o)   | a "Termination Event" (as defined in the Other Lease Agreement) shall have occurred and be continuing (i) on account of Lessee’s failure to make any payment required thereunder, or (ii) for any other reason and the lessor under the Other Lease Agreement terminates the leasing of the Other Aircraft on account thereof:  or |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (p)   | the Parent Guaranty ceases to be in full force and effect; or |
|-----------------|---------------------------------------------------------------|

| (q)   | the Capacity Purchase Agreement ceases to be in full force and effect and the Lessee fails to enter into a new Capacity Purchase Agreement within ninety (90) days thereafter. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24.   | LESSOR'S RIGHTS FOLLOWING A TERMINATION EVENT |
|-----------------|-----------------------------------------------|

| 24.1   | Lessor's Rights Following Termination Event |
|------------------|---------------------------------------------|

----

| (a)   | upon the written demand of Lessor and at Lessee's expense, cause Lessee to return promptly, and Lessee shall return promptly, the Aircraft, Airframe, any Engine or any Propeller as Lessor may so demand to Lessor or its order in the manner and condition required by, and otherwise in accordance with all the provisions of, Clause 21 hereof as if such Aircraft, Airframe, Engine or Propeller were being returned at the end of the Lease Term, or Lessor, at its option, may enter upon the premises where all or any part of the Aircraft, Airframe, any Engine or any Propeller is located and take immediate possession of and remove the same by summary proceedings or otherwise, all without liability accruing to Lessor for or by reason of such entry or taking of possession or removal whether for the restoration of damage to property caused by such action or otherwise; provided that if Lessee shall for any reason fail to execute and deliver instruments deemed necessary or advisable by Lessor to obtain possession of the Aircraft, Airframe, Engines and Propellers (together with any and all related records, logs and other documents), Lessor shall be entitled, in a proceeding to which Lessee shall be a necessary party, to a judgment for specific performance, conferring the right to immediate possession upon Lessor and requiring Lessee to execute and deliver such instruments to Lessor; and/or |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | upon reasonable notice to Lessee, sell the Aircraft, Airframe, any Engine, or any Propeller at public or private sale, as Lessor may determine, or otherwise dispose of, hold, use, operate, lease to others or keep idle the Aircraft, Airframe, any Engine or any Propeller as Lessor, in its sole discretion, may determine, all free and clear of any rights of Lessee, and without any duty to account to Lessee with respect to such action or inaction; and/or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | whether or not Lessor shall have exercised, or shall thereafter at any time exercise, any of its rights under paragraph (a) above with respect to the Aircraft, demand, by written notice to Lessee specifying a payment date (the "Termination Value Date"), that Lessee pay to Lessor, and Lessee shall pay Lessor, on such Termination Value Date (which shall be a Rent Payment Date), as liquidated damages for loss of a bargain and not as a penalty (in lieu of Rent due after such specified Termination Value Date) (I) all unpaid Rent due on or prior to such Termination Value Date, plus (II) an amount (together with interest, if any, on such amount at the Default Rate from such Termination Value Date until the date of actual payment of such amount as provided herein) equal to the excess, if any, of (A) the sum of the Termination Value for such Aircraft as of such Termination Value Date, over (B) the Fair Market Value of such Aircraft as of such specified payment date; and/or |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (d)   | if Lessor, pursuant to paragraph (b) above, shall have sold the Aircraft, demand, if it shall so elect, in lieu of exercising its rights under paragraph (c) above with respect to the Aircraft, that Lessee pay Lessor, and Lessee shall pay to Lessor, on the first Rent Payment Date falling after the date of such sale, as liquidated damages for loss of a bargain and not as a penalty, any (I) unpaid Rent due on or prior to such Rent Payment Date, plus (II) the amount of any deficiency between the net proceeds of such sale (after deduction of all costs of sale) and the Termination Value of such Aircraft, computed as of such Rent Payment Date, together with interest, if any, on the amount of such deficiency, at the Default Rate, from the date of such sale to the date of actual payment of such amount; and/or |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | so long as the Aircraft has not been sold pursuant to paragraph (b) above, by notice to Lessee, require Lessee to pay on any Rent Payment Date on demand to Lessor, and Lessee hereby agrees that it will so pay Lessor, as liquidated damages for loss of a bargain and not as a penalty (in lieu of Rent for any period due after such Rent Payment Date) (I) any unpaid Rent due on or prior to such Rent Payment Date so specified, plus (II) an amount equal to the Termination Value for the Aircraft computed as of such Rent Payment Date, together with interest, to the extent permitted by applicable law, at the Default Rate on such amount from such Rent Payment Date to the date of actual payment; and upon such payment of liquidated damages and the payment of all other Rent then due hereunder, Lessor shall proceed to use its commercially reasonable efforts to promptly sell the Aircraft, or to sell the Airframe and each Engine and Propeller, and shall pay over to Lessee the net proceeds of such sale (after deducting from such proceeds of such sale Expenses whatsoever incurred by Lessor and Owner Participant in connection therewith and all other amounts which may become payable by Lessor or Owner Participant or any Financing Party, including any carrying and maintenance costs) up to the amount of liquidated damages actually paid; and/or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | terminate or cancel this Lease or proceed by appropriate court action to enforce the terms hereof or to recover damages for breach hereof; and/or |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (g)   | require Lessee to indemnify each Indemnitee on demand and on an After-Tax Basis against any Expense which such Indemnitee may sustain or incur as a result or consequence of such Termination Event, including (but not limited to): |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | any amount payable by Lessor to any Financing Party as a consequence of repaying any principal amount on a day other than a scheduled repayment date (including any breakage costs arising on such prepayment); and |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | any Expense sustained or incurred by Lessor owing to Lessee's failure to redeliver the Aircraft on the date, at the place and in the condition required by this Agreement including the cost to Lessor of restoring the Aircraft to the condition required by Clause 21;  and/or |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h)   | exercise, and Lessor shall have, in addition to the aforesaid rights and remedies, all other rights and remedies available hereunder, at law or in equity, or by statute, each of which may be exercised singly or concurrently with any one or more other rights or remedies, including, solely to the extent applicable, remedies available under the Cape Town Convention. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 24.2   | Cure of Defaults by Lessor |
|------------------|----------------------------|

| 24.3   | Deregistration Following Termination Event |
|------------------|--------------------------------------------|

----

| 24.4   | Lessor's Rights Cumulative |
|------------------|----------------------------|

| 25.   | NOTICES |
|-----------------|---------|

| 25.1   | Delivery of Notices |
|------------------|---------------------|

| (a)   | to Lessor to: |
|-----------------|---------------|

|   | Address: | Wells Fargo Bank Northwest, National Association |
|--------|----------|--------------------------------------------------|

|   |   | 299 S. Main Street, 12th Floor |
|--------|--------|--------------------------------|

|   | MAC:  U1228-120 |
|--------|---------------------------|

|   | Salt Lake City, UT 84111 |
|--------|--------------------------|

|   | Fax: | (801) 246-5053 |
|--------|------|----------------|

|   | Attention: | Corporate Trust Services |
|--------|------------|--------------------------|

|   | Address: | Siemens Financial Services, Inc. |
|--------|----------|----------------------------------|

|   | 170 Wood Avenue South |
|--------|-----------------------|

|   | Iselin, NJ 08830-2704 |
|--------|-----------------------|

|   | Fax: | (732) 476-3469 |
|--------|------|----------------|

|   | Attention: | Vice President, Credit |
|--------|------------|------------------------|

| (b)   | to Lessee to: |
|-----------------|---------------|

|          Address: | Pinnacle Airlines Corp. |
|----------------------------------------------------------------|-------------------------|

|   | 1689 Nonconnah Blvd., Suite 111 |
|--------|---------------------------------|

|   |   | Memphis, TN 38132 |
|--------|--------|-------------------|

|   | Fax: | (901) 348-4102 |
|--------|------|----------------|

|   | Attention: | Ronald T. Kay |
|--------|------------|---------------|

----

| 25.2   | English Language |
|------------------|------------------|

| 25.3   | Delivery on Non-Business Day |
|------------------|------------------------------|

| 26.   | ASSIGNMENT |
|-----------------|------------|

| 26.1   | Transfer by Lessor |
|------------------|--------------------|

----

| 26.2   | Transfer by Owner Participant |
|------------------|-------------------------------|

----

| 26.3   | Cooperation with Transfers |
|------------------|----------------------------|

| 26.4   | Financing Arrangements |
|------------------|------------------------|

----

| 26.5   | Co-operation with Financings |
|------------------|------------------------------|

| 26.6   | Assignment by Lessee |
|------------------|----------------------|

| 26.7   | Successors |
|------------------|------------|

----

| 27.   | MISCELLANEOUS |
|-----------------|---------------|

| 27.1   | Entire Agreement |
|------------------|------------------|

| 27.2   | Delay in Exercising Rights |
|------------------|----------------------------|

| 27.3   | Time of the Essence |
|------------------|---------------------|

| 27.4   | Further Assurance |
|------------------|-------------------|

| 27.5   | Delegation |
|------------------|------------|

----

| 27.6   | Rights at Law |
|------------------|---------------|

| 27.7   | Counterparts |
|------------------|--------------|

| 27.8   | Severability |
|------------------|--------------|

| 27.9   | Language |
|------------------|----------|

| 27.10   | Expenses |
|-------------------|----------|

----

| 27.11   | Section 1110 |
|-------------------|--------------|

| 27.12   | Chattel Paper |
|-------------------|---------------|

| 28.   | CONFIDENTIALITY |
|-----------------|-----------------|

----

| (a)   | in connection with any legal proceedings arising out of or in connection with this Agreement or any of the other Operative Documents; or |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | if required to do so by an order of a court of competent jurisdiction whether in pursuance of any procedure for discovery of documents or otherwise; or |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | pursuant to any law, rule or regulation having the force of law or any applicable stock exchange rule or other applicable regulation; or |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | to any fiscal, monetary, tax, governmental or other competent authority; or |
|-----------------|-----------------------------------------------------------------------------|

| (e)   | to the insurers (and/or insurance brokers), auditors, legal or other professional advisors of Lessee, Lessor or Owner Participant; or |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | if any of the same is or shall become publicly known otherwise than as a result of a breach by such party of this Clause 28; or |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------|

| (g)   | in any manner contemplated by any of Operative Documents; or |
|-----------------|--------------------------------------------------------------|

| (h)   | to Owner Participant or any Financing Party or any potential Financing Party; or |
|-----------------|----------------------------------------------------------------------------------|

| (i)   | to any potential financing party or other counterparty in any potential transaction to which Lessee would be a party, but only if such party is obligated to keep such information confidential; or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (j)   | to any OP Transferee or Lessor Transferee or any potential transferee of Lessor or Owner Participant. |
|-----------------|-------------------------------------------------------------------------------------------------------|

| 29.   | LAW AND JURISDICTION |
|-----------------|----------------------|

| 29.1   | Governing Law |
|------------------|---------------|

----

| 29.2   | Jurisdiction |
|------------------|--------------|

| 29.3   | Waiver of Jury Trial |
|------------------|----------------------|

----

| 29.4   | Waiver of Immunity |
|------------------|--------------------|

----

----

| Aircraft Manufacturer: | Bombardier Inc. |
|------------------------|-----------------|

| Model: | Bombardier/DHC-8-402 |
|--------|----------------------|

| Serial Number: | 4351 |
|----------------|------|

| Registration Mark: | 351NG |
|--------------------|-------|

| Date of Manufacture: | March 2011 |
|----------------------|------------|

| Engine Manufacturer: | Pratt and Whitney Canada Corp |
|----------------------|-------------------------------|

| Model: | PW150A |
|--------|--------|

| Serial Numbers: | FA0775 and FA0774 |
|-----------------|-------------------|

| Propeller Manufacturer: | Dowty Rotol |
|-------------------------|-------------|

| Model: | R408/6-123-F/17 |
|--------|-----------------|

| Serial Numbers: | DAP0767 and DAP0768 |
|-----------------|---------------------|

| Model: | Hamilton/Sundstrand |
|--------|---------------------|

----

| 1.   | Details of Acceptance |
|----------------|-----------------------|

| (a)   | Airframe |
|-----------------|----------|

|   | Aircraft Type: | Bombardier DHC-8-402 |
|--------|----------------|----------------------|

|   | Aircraft S/N: | 4351 |
|--------|---------------|------|

| (b)   | Engines |
|-----------------|---------|

|   | No. 1 S/N: | FA0775 |
|--------|------------|--------|

|   | No. 2 S/N: | FA0774 |
|--------|------------|--------|

| (c)   | Propellers |
|-----------------|------------|

|   | No. 1 S/N: | DAP 0767 |
|--------|------------|----------|

|   | No. 2 S/N: | DAP 0768 |
|--------|------------|----------|

----

| (d)   | Landing Gears |
|-----------------|---------------|

|   | N S/N: | 1 S/N: | 2 S/N: |
|--------|--------|--------|--------|

|   | MA-0384 | MA-0731 | MA-0729 |
|--------|---------|---------|---------|

| (e)   | APU |
|-----------------|-----|

| (f)   | Aircraft Manuals:  as per list attached hereto as Attachment 1; |
|-----------------|---------------------------------------------------------------------------|

| (g)   | Loose Equipment Check List:  as per list attached hereto as Attachment 2. |
|-----------------|-------------------------------------------------------------------------------------|

| 2.   | Confirmation |
|----------------|--------------|

| (a)   | the representations and warranties contained in Clause 2 are true and correct and are hereby repeated; |
|-----------------|--------------------------------------------------------------------------------------------------------|

| (b)   | the Aircraft is insured as required by the Lease; |
|-----------------|---------------------------------------------------|

| (c)   | Lessee's authorized technical experts have inspected the Aircraft to ensure the Aircraft conforms to Lessee's requirements; and |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------|

| (d)   | the Aircraft is in accordance with the specifications of the Lease, is satisfactory in all respects and in Delivery Condition. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------|

| 3.   | Lease |
|----------------|-------|

----

----

----

----

| 4.   | A copy, certified by a duly authorized representative of Lessee to be a true, complete and up-to-date copy, of the constitutional documents of Lessee. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.   | A copy, certified by an officer of Lessee to be a true copy, and as being in full force and effect and not amended or rescinded, of resolutions of board of directors of Lessee: |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | approving the transactions contemplated by the Operative Documents to which it is a party; and |
|-----------------|------------------------------------------------------------------------------------------------|

| (b)   | authorizing a person or persons to sign and deliver on its behalf the Operative Documents to which it is a party, and any notices and other documents to be given pursuant hereto or thereto. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.   | A copy, certified by an officer of Lessee, of any powers of attorney authorizing the signature/delivery of any such document. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------|

| 7.   | Originals or certified copies of certificates evidencing the insurance and reinsurance required to be maintained pursuant to Clause 18. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------|

| 8.   | A letter of undertaking addressed to Lessor from Lessee's insurance and reinsurance brokers in form and substance reasonably satisfactory to Lessor. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.   | A certified copy of each of: |
|----------------|------------------------------|

| (c)   | the airworthiness certificate in the public transport category (passenger) issued by the Aviation Authority with respect to the Aircraft; and |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | the Certificate of Registration of the Aircraft with the Aviation Authority. |
|-----------------|------------------------------------------------------------------------------|

| 10.   | A legal opinion from each of (i) Lessee's in-house counsel and (ii) Vinson & Elkins L.L.P., special counsel to Lessee, (ii) Ray Quinney & Nebeker, special counsel to Lessor, (iii) Vedder Price P.C., special counsel to Owner Participant, and (iv) Crowe & Dunlevy, P.C., FAA counsel, each in form and substance reasonably satisfactory to Lessor. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 11.   | On the Closing Date the following statements shall be true, and each of Lessor and Owner Participant shall have received evidence satisfactory to it to the effect that: |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)    | Lessor has good and marketable title (subject to filing with and recording by the FAA of the FAA Bill of Sale) to the Aircraft, free and clear of Security Interests other than (i) Permitted Security Interests, (ii) the rights of Lessee under the Lease and Acceptance Certificate and (iii) the rights of Owner Participant under the Trust Agreement; |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   (b)  | the Aircraft Registration Application for registration of the Aircraft in the name of Owner Trustee (together with any required affidavits) has been duly filed with the FAA; |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   (c)  | upon registration of the Aircraft in the name of Lessor with the FAA, Lessee shall have authority to operate such Aircraft; |
|------------------|-----------------------------------------------------------------------------------------------------------------------------|

|   (d)  | the FAA Bill of Sale, the Trust Agreement, the Lease and the Acceptance Certificate have been duly filed with the FAA for recordation; |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------|

|   (e)  | Owner Trustee, as lessor under the Lease, is entitled to the protection of Section 1110 of the Bankruptcy Code in connection with their respective rights to take possession of the Aircraft in the event of a case under Chapter 11 of the Bankruptcy Code in which Lessee is a debtor; |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   (f)  | the Aircraft has been duly certified by the FAA as to type and has a current FAA airworthiness certificate; |
|------------------|-------------------------------------------------------------------------------------------------------------|

|   (g)  | registrations with the International Registry have been made as follows:  (i) the registration of a prospective contract of sale as to the Airframe and each Engine from Lessee to Lessor, and (ii)  the registration of a prospective international interest as to the Airframe and each Engine under the Lease between Lessee and Lessor, in favor of Lessor; and |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (h)Export Development Canada, as loan trustee, shall have released all liens filed (i) pursuant to the Uniform Commercial Code, (ii) with the FAA, and (iii) with the International Registry, related to and arising under that certain Trust Indenture and Security Agreement (N351NG), dated March 18, 2011 between Lessee as borrower, and Export Development Canada, as loan trustee.   |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.   | A copy of the Approved Maintenance Program. |
|-----------------|---------------------------------------------|

| 13.   | A copy of the Engine Warranty Letter, duly executed by the Engine Manufacturer; |
|-----------------|---------------------------------------------------------------------------------|

| 14.   | The following Operative Documents, each duly executed by Lessee: |
|-----------------|------------------------------------------------------------------|

|   |   (e) | the Airframe Warranty Agreement (duly executed by Lessee and the Airframe Manufacturer); |
|--------|------------|------------------------------------------------------------------------------------------|

----

----

----

----

| 3.1 | Confidentiality. The portion of this Exhibit appearing below this text is intentionally deleted from the FAA filing counterpart as the parties hereto deem it to contain confidential information. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.2 | Inspection. | Prior to Aircraft return, Lessor shall be permitted to perform, or cause to be performed, for the purpose of ensuring that the Aircraft is in the condition required for return to Lessor in accordance with this Agreement, the following: |
|-----|-------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| a.   |      a visual exterior and interior inspection of the Aircraft; |
|----------------|------------------------------------------------------------------------------------------|

| b.   | ground systems functional tests including landing gear retraction/extension at Lessee's cost; |
|----------------|-----------------------------------------------------------------------------------------------|

| c.   |      Engine ground power runs at Lessee's cost; |
|----------------|--------------------------------------------------------------------------|

| d.   | a functional check flight, at Lessee's cost with Lessor's representative on board, not to exceed two hours using a mutually agreed flight check profile; and |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e. | a comprehensive review of all Aircraft Documentation to include, but not be limited to, all logs, data, inspection, modification and overhaul records required to be maintained with respect to the Aircraft, the Engines, the Propellers or any Part thereof. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| a.   | continuously and currently maintained, repaired, modified and overhauled in compliance with the requirements of Clauses 13 and 14 of this Agreement and with the rules, regulations and other requirements of the FAA and with all pilot discrepancies and deferred maintenance items cleared (using the intervals set in the Operator’s Approved Maintenance Program); |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b.   | all FAA airworthiness directives and amendments or changes to the FAR's and all mandatory service bulletins that are past or due the implementation date and applicable to the Aircraft, Engines, Propellers or Parts  shall have been accomplished.  Where terminating action is not permitted by the applicable airworthiness directive, rule, regulation or bulletin, any required repetitive inspection shall have been performed immediately prior to return.  All vendor and manufacturer's no charge service bulletin kits ordered and received for the Aircraft but not installed at the time of return shall be provided to Lessor at no additional charge as part of the Aircraft; |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| c.   | conform to the applicable Type Certificate Data Sheet and any modifications performed since the Delivery Date which deviate from the configuration on the Delivery Date and which are still incorporated in the Aircraft shall have the approval or certification of the FAA (and an engineering order issued by a Person other than by the applicable original equipment manufacturer shall not constitute such approval) or be removed by Lessee, unless otherwise deemed acceptable in writing by Lessor in its reasonable discretion; all repairs performed since the Delivery Date shall have been accomplished in accordance with the Maintenance Planning Document; |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d.   | in good operating and maintenance condition by normal airline standards, with no broken or missing Parts and with all of the Aircraft equipment, components, systems, Parts and each Engine and Propeller functioning in accordance with their intended use without regard to deviations or variation authorized by the Minimum Equipment List (as defined in the Maintenance Program); |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| e.   | in clean condition (except for ordinary wear and tear), with the cabin in a condition suitable for commercial passenger revenue service; |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------|

| f.   | been subject to continuous corrosion control pursuant to Lessee's Maintenance Program with no untreated or uncorrected corrosion remaining; |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------|

| g.   | all logos and other identifying marks of Lessee removed in a professional manner; |
|----------------|-----------------------------------------------------------------------------------|

| h.   |  all repairs shall be listed in a written report certified as correct by Lessee's Director of Maintenance (or other comparable person) and no outstanding maintenance or repair requirements remaining to be performed; |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| i.   | not have been discriminated against in anticipation of its return, including maintenance, repair, or replacement of Parts or components; and |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------|

| j.   | upon return of the Aircraft each fuel tank shall contain the same quantity of fuel as was contained in such tanks when such Aircraft was delivered to Lessee hereunder (which shall be presumed to be fifty percent (50%) of full capacity) and, in the case of differences in such quantity, an appropriate adjustment will be made by payment by Lessor or Lessee, as applicable, at the then current market price of fuel. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | The fuselage shall have no undocumented repairs, dents, abrasion, delamination or corrosion. |
|--------|----------------------------------------------------------------------------------------------|

|   | i) | The wings, flaps and empennage shall have no undocumented repairs, dents, abrasion, delamination or corrosion. |
|--------|----|----------------------------------------------------------------------------------------------------------------|

|   | ii) | The wings and the horizontal stabilizer shall be free of any fuel and fluid leaks. |
|--------|-----|------------------------------------------------------------------------------------|

|   | iii) | All unpainted cowlings and fairings shall be duly protected. |
|--------|------|--------------------------------------------------------------|

| i)   | The landing gear shall be in good operating condition and free of hydraulic fluid leaks and corrosion. |
|----------------|--------------------------------------------------------------------------------------------------------|

| ii)   | The landing gear wheel wells shall be clean, free of hydraulic fluid leaks and corrosion. |
|-----------------|-------------------------------------------------------------------------------------------|

| iii)   | All markings and decals shall be clean and legible. |
|------------------|-----------------------------------------------------|

| i)   | The cockpit layout shall be the same as on the Delivery Date. |
|----------------|---------------------------------------------------------------|

| ii)   | The panels and instruments shall be clean and touched-up with paint as required. |
|-----------------|----------------------------------------------------------------------------------|

| iii)   | The floor coverings shall be in good condition, clean and effectively sealed. |
|------------------|-------------------------------------------------------------------------------|

| iv)   | The flight crew seats shall be serviceable and clean.  They shall comply with the FAA fire resistance rules and regulations applicable to the Aircraft. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| i)   | The galleys and lavatory and their associated equipment shall be in good operating condition and comply with the FAA fire resistance rules and regulations applicable to the Aircraft. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ii)   | All seats shall be serviceable, in good appearance and condition, and recovered if torn or stained. |
|-----------------|-----------------------------------------------------------------------------------------------------|

| iii)   | All carpets, fabrics and seat covers shall be in good condition, clean, stain-free and meet the FAA fire resistance rules and regulations applicable to the Aircraft. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| iv)   | Bulkhead panels, sidewalls and ceilings shall be clean, free of stains, damage and cracks and meet the FAA fire resistance regulations applicable for the Aircraft. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| v)   | All cabin signs shall be legible, clean and undamaged. |
|----------------|--------------------------------------------------------|

| i)   | All protective side and floor panels shall be in good condition, clean and undamaged. |
|----------------|---------------------------------------------------------------------------------------|

| ii)   | All components shall be in good operating condition. |
|-----------------|------------------------------------------------------|

| iii)   | All nets shall be in good condition, and undamaged. |
|------------------|-----------------------------------------------------|

|   | i)  | Each Engine shall be fully Serviceable and which shall be confirmed during full take off power assurance runs completed in accordance with the Engine Manufacturer's recommendations. |
|--------|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ii)  | In no event shall Lessee during the last 90 days of the Lease Term, discriminate in its scheduling of the Aircraft to avoid an overhaul on an Engine. |
|--------|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

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| a.   | Each Airframe inspection or component that is subject to a flight hour, cycle or calendar time limit of operation before an inspection, overhaul, repair or replacement is required ("Time Limit") shall be current and not cause any airworthiness limitations. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b.   |   |
|----------------|--------|

| 1. | C Check:  The Airframe shall at least have *** of the allowable hours and / or cycles and / or calendar time whichever is more limiting, remaining until the next C Check.  If not, an economic adjustment (based upon market rates at the time as reasonably determined by Lessor) will be calculated and payable from Lessee to Lessor to the extent of any shortfall below the *** level [market cost of overhaul multiplied by (time at *** - actual time remaining)/allotted time between overhauls]. In no case will the Airframe hours and / or cycles and / or calendar time , whichever is more limiting, be less than *** remaining until the next C Check.  All observed defects not within serviceable limits shall be rectified by Lessee at Lessee’s sole cost. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | 40,000 Cycle Structural Inspection:  The Airframe shall have at least *** of the allowable time left until the next scheduled 40,000 cycle structural inspection.  If not, an economic adjustment (based upon market rates at the time as reasonably determined by Lessor) will be calculated and payable from Lessee to Lessor for the shortfall below the *** level [market cost of check multiplied by (time at *** - actual time remaining)/allotted time between checks]. In no case will the Airframe cycles be less than *** remaining until the next 40,000 cycle structural inspection. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| c.   | Each component that is subject to a Time Limit shall be accompanied by appropriate airworthiness certification documents (such as an FAA Form 8130) certifying the maintenance performed. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d.   | Each on-condition component shall be fully serviceable. |
|----------------|---------------------------------------------------------|

| a.   | At the time of any return of the Aircraft, Lessee shall deliver to Lessor the Aircraft Documentation (including current revisions thereto) and other technical data relating to the Aircraft.  Such Aircraft Documentation shall include all documents required to place the Aircraft on an FAA-approved maintenance program or as required by FAR part 121.  It is recognized that the Aircraft Documentation may be titled or described differently than when the Aircraft was originally delivered to Lessee due to Lessee's method of maintaining the Aircraft Documentation. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b.   | At least 30 days prior to return of the Aircraft, Lessee shall make available for the Lessor to view one complete set of the Aircraft Documentation, fully up-to-date and in the English language.  Lessee shall ensure that all Aircraft Documentation shall be in good condition, readable and capable of being reproduced using standard reproduction processes, complete and up to date in accordance with industry standards. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c.   | Lessee shall also provide, if reasonably requested by Lessor, advance copies of any of the updated Aircraft Documentation, on a case by case basis, in order to facilitate Lessor's planning or accomplishing rectification, modification, return, lease or other disposition or utilization of the Aircraft. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | Agreed   V a l u e                                     |                                          |   |   |
|--------|-----------------------------------------------------------------------|-----------------------------------------------|--------|--------|
|   | - - - - -   S c h e d u l e   - - - - - |                                          |   |   |
|   |                                                                  |                                          |   |   |   |
|   |                                                                  |                                          |   |   |   |
|   |                                                                  |                                          |   |   |   |
|   |                                                                  |                                          |   |   |   |
|   |                                                                  |                                          |   |   |   |
|   |                                                                  |                                          |   |   |   |
|   |                                                                  | Agreed                                        |   |   |   |
|   | Date                                                                  | Value                                         |   |   |   |
|   |                                                                  |                                          |   |   |   |
|   | ***                                                                   |                                          |   |   |   |
|   |                                                                  | Agreed values are due in addition to any      |   |
|   |                                                                  | advance or arrears rent due on the same date. |
|   |                                                                  |                                          |   |   |   |

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|   | T e r m i n a t i o n   V a l u e                      |                                                |   |
|--------|-----------------------------------------------------------------------|-----------------------------------------------------|--------|
|   | - - - - -   S c h e d u l e   - - - - - |                                                |   |
|   |                                                                  |                                                |   |   |
|   |                                                                  |                                                |   |   |
|   |                                                                  |                                                |   |   |
|   |                                                                  |                                                |   |   |
|   |                                                                  |                                                |   |   |
|   |                                                                  |                                                |   |   |
|   |                                                                  | Termination                                         |   |   |
|   | Date                                                                  | value                                               |   |   |
|   |                                                                  |                                                |   |   |
|   | ***                                                                   |                                                |   |   |
|   |                                                                  |  Termination values are due in addition to any |
|   |                                                                  |  advance or arrears rent due on the same date. |

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