Document:

Collateral Maintenance Agreement, dated as of June 9, 2006

     

    COLLATERAL
      MAINTENANCE AGREEMENT

     

    AMONG

     

    CONTINENTAL
      AIRLINES, INC.,

     

    FINANCIAL
      GUARANTY INSURANCE COMPANY,

     

    as
      Policy
      Provider,

     

    AND

     

    WILMINGTON
      TRUST COMPANY,

     

    as
      Mortgagee

     

    dated
      as
      of June 9, 2006

    

      
        
          
            

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
            

          

        

      

    

    TABLE
      OF CONTENTS

     

    PAGE

    
      
        
          	
                   

                  ARTICLE
                    1

                	
                   

                  DEFINITIONS
                    AND RULES OF
                    CONSTRUCTION

                	
                   

                  1

                
	
                   

                  Section
                    1.1

                	
                   

                  Definitions

                	
                   

                  1

                
	
                   

                  Section
                    1.2

                	
                   

                  Rules
                    of Construction

                	
                   

                  1

                
	
                   

                  ARTICLE
                    2

                	
                   

                  REPORTS
                    REGARDING THE COLLATERAL

                	
                   

                  1

                
	
                   

                  Section
                    2.1

                	
                   

                  Annual
                    Appraisal

                	
                   

                  1

                
	
                   

                  Section
                    2.2

                	
                   

                  Semiannual
                    Appraisal

                	
                   

                  2

                
	
                   

                  Section
                    2.3

                	
                   

                  Quarterly
                    Reports

                	
                   

                  3

                
	
                   

                  Section
                    2.4

                	
                   

                  Special
                    Reports

                	
                   

                  3

                
	
                   

                  Section
                    2.5

                	
                   

                  Information
                    from the Mortgagee

                	
                   

                  4

                
	
                   

                  Section
                    2.6

                	
                   

                  Independent
                    Appraiser

                	
                   

                  4

                
	
                   

                  ARTICLE
                    3

                	
                   

                  COLLATERAL
                    REQUIREMENTS

                	
                   

                  4

                
	
                   

                  Section
                    3.1

                	
                   

                  Maintenance
                    of Collateral Ratio

                	
                   

                  4

                
	
                   

                  Section
                    3.2

                	
                   

                  Certain
                    Limitations Regarding the
                    Collateral

                	
                   

                  7

                
	
                   

                  Section
                    3.3

                	
                   

                  Fleet
                    Reduction

                	
                   

                  7

                
	
                   

                  Section
                    3.4

                	
                   

                  Inspection

                	
                   

                  8

                
	
                   

                  ARTICLE
                    4

                	
                   

                  MISCELLANEOUS

                	
                   

                  9

                
	
                   

                  Section
                    4.1

                	
                   

                  Benefits
                    of Agreement Restricted

                	
                   

                  9

                
	
                   

                  Section
                    4.2

                	
                   

                  Appraiser’s
                    Certificate

                	
                   

                  9

                
	
                   

                  Section
                    4.3

                	
                   

                  Notices;
                    Waiver

                	
                   

                  9

                
	
                   

                  Section
                    4.4

                	
                   

                  Amendments,
                    Etc.

                	
                   

                  10

                
	
                   

                  Section
                    4.5

                	
                   

                  No
                    Waiver

                	
                   

                  10

                
	
                   

                  Section
                    4.6

                	
                   

                  Successors
                    and Assigns

                	
                   

                  11

                
	
                   

                  Section
                    4.7

                	
                   

                  Governing
                    Law

                	
                   

                  11

                
	
                   

                  Section
                    4.8

                	
                   

                  Effect
                    of Headings

                	
                   

                  11

                
	
                   

                  Section
                    4.9

                	
                   

                  Counterpart
                    Originals

                	
                   

                  11

                
	
                   

                  Section
                    4.10

                	
                   

                  Severability

                	
                   

                  11

                

        

      

    

     

    APPENDIX
      I - FORM OF APPRAISAL COMPLIANCE REPORT

    APPENDIX
      II - FORM OF NONAPPRAISAL COMPLIANCE
      REPORT

    

    
      
        
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    COLLATERAL
      MAINTENANCE AGREEMENT

     

    COLLATERAL
      MAINTENANCE AGREEMENT, dated as of June 9, 2006 (this “Agreement”),
      among CONTINENTAL AIRLINES, INC., a Delaware corporation (the “Company”),
      FINANCIAL GUARANTY INSURANCE COMPANY, a New York stock insurance company (the
      “Policy
      Provider”),
      and
      WILMINGTON TRUST COMPANY, as Mortgagee (the “Mortgagee”)
      under
      the Trust Indenture and Mortgage, dated as of the date hereof, between the
      Company and the Mortgagee (the “Trust
      Indenture”).

     

    R
      E C I T
      A L S

     

    WHEREAS,
      the Company, and the Mortgagee have entered into the Trust Indenture providing
      for the issuance of $320,000,000 aggregate principal amount of Equipment Notes,
      and the Policy Provider has issued the Policy under which the Subordination
      Agent may make drawings to make certain payments with respect to the Series
      G
      Equipment Notes for the benefit of Class G Pass Through
      Certificateholders;

     

    WHEREAS,
      in order to secure the payment of the principal amount of and interest on the
      Equipment Notes and all other Secured Obligations under the Trust Indenture,
      the
      Company has granted a security interest in the Collateral pursuant to the Trust
      Indenture; and

     

    WHEREAS,
      the Company, the Policy Provider and the Mortgagee wish to set forth herein
      certain additional agreements with respect to the Collateral.

     

    NOW,
      THEREFORE, in consideration of the premises and other benefits to the Company,
      the receipt and sufficiency of which are hereby acknowledged, the Company,
      the
      Policy Provider and the Mortgagee agree as follows:

     

    ARTICLE
      1

     

    DEFINITIONS
      AND RULES OF CONSTRUCTION

     

    Section
      1.1 Definitions.
      Capitalized terms used above or hereinafter and not otherwise defined herein
      shall have the meanings ascribed to such terms in the Trust
      Indenture.

     

    Section
      1.2 Rules
      of Construction.
      The
      rules of construction for this Agreement are set forth under “General
      Provisions” in Annex A to the Trust Indenture.

     

    ARTICLE
      2

     

    REPORTS
      REGARDING THE COLLATERAL

     

    Section
      2.1 Annual
      Appraisal.
      So long
      as the Equipment Notes are outstanding, by the tenth Business Day of October
      in
      2006 and by the tenth Business Day of October of each year thereafter, the
      Company shall furnish the Policy Provider, the Mortgagee and the Rating

    
      
        
        

      

      
        
        

        
          

        

      

      
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    Agencies
      an Independent Appraiser’s Certificate signed by an Independent Appraiser, dated
      as of a date between the preceding September 25 and October 10
      (inclusive). Each such Independent Appraiser’s Certificate shall state, in the
      opinion of such Independent Appraiser, based upon use of the Annual Methodology,
      the following:

     

    
      	 	
              (a)

            	
              the
                Fair Market Value of the Collateral (excluding any Cash Collateral
                and,
                for the avoidance of doubt, any Excluded Parts) as of a specified
                date
                within 45 days (or, if an Independent Appraiser’s Certificate signed
                by such Independent Appraiser has not previously been delivered to
                the
                Policy Provider pursuant to this Agreement or in the Prospectus
                Supplement, 60 days) (the “Permitted
                Days”)
                preceding the date of such Certificate (the “Annual
                Valuation Date”);

            

    

     

    
      	 	
              (b)

            	
              the
                Fair Market Value of the Rotables and of the Expendables included
                in the
                Collateral as of the applicable Annual Valuation Date (and shall
                separately state the quantity of such Rotables and Expendables);
                and

            

    

     

    
      	 	
              (c)

            	
              the
                Fair Market Value of the Serviceable Parts and the Unserviceable
                Parts
                included in the Collateral as of the applicable Annual Valuation
                Date.

            

    

     

    Each
      annual Independent Appraiser’s Certificate shall be accompanied by an Appraisal
      Compliance Report determined using data as of the applicable Annual Valuation
      Date. The Appraisal Compliance Report shall set forth the calculation of the
      Collateral Ratio, the Subordinated Collateral Ratio and the Rotable Ratio based
      on the Fair Market Value of the Collateral and the Rotables set forth in such
      Independent Appraiser’s Certificate, the Fair Market Value of Cash Collateral
      held by the Collateral Agent, the principal amount of the Series G Equipment
      Notes outstanding and the principal amount of the Series B Equipment Notes
      outstanding, each as of the applicable Annual Valuation Date. Upon written
      request of the Policy Provider given to the Company within twenty Business
      Days
      after delivery to the Policy Provider of an annual Independent Appraiser’s
      Certificate under this Section 2.1, the Company shall furnish to the Policy
      Provider (with a copy to the Mortgagee) a recent Parts Inventory Report and
      a
      report showing the percentage of the total cost of the Pledged Spare Parts
      located at each Company facility (determined, with respect to each model of
      Spare Part or Appliance included in the Pledged Spare Parts, using the average
      cost of the Pledged Spare Parts of such model multiplied by the quantity of
      such
      model included in the Pledged Spare Parts) as of the same date as the date
      of
      such Parts Inventory Report.

     

    Section
      2.2 Semiannual
      Appraisal.
      So long
      as the Equipment Notes are outstanding, by the tenth Business Day of April
      in
      2007 and by the tenth Business Day of April in each year thereafter, the Company
      shall furnish the Policy Provider, the Mortgagee and the Rating Agencies an
      Independent Appraiser’s Certificate signed by an Independent Appraiser, dated as
      of a date between the preceding March 25 and April 10 (inclusive). Each
      such semiannual Independent Appraiser’s Certificate shall state, in the opinion
      of such Independent Appraiser, based upon the use of the Semiannual Methodology,
      the following:

     

    
      	 	
              (a)

            	
              the
                Fair Market Value of the Collateral (excluding any Cash Collateral
                and,
                for the avoidance of doubt, any Excluded Parts) as of a specified
                date
                within the 

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
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    Permitted
      Days preceding the date of such Certificate (the “Semiannual
      Valuation Date”);

     

    
      	 	
              (b)

            	
              the
                Fair Market Value of the Rotables and of the Expendables included
                in the
                Collateral as of the applicable Semiannual Valuation Date (and shall
                separately state the quantity of such Rotables and Expendables);
                and

            

    

     

    
      	 	
              (c)

            	
              the
                Fair Market Value of the Serviceable Parts and the Unserviceable
                Parts
                included in the Collateral as of the applicable Semiannual Valuation
                Date.

            

    

     

    Each
      semiannual Independent Appraiser’s Certificate shall be accompanied by an
      Appraisal Compliance Report determined using data as of the applicable
      Semiannual Valuation Date. The Appraisal Compliance Report provided with the
      semiannual Independent Appraiser’s Certificate shall set forth the calculation
      of the Collateral Ratio, the Subordinated Collateral Ratio and the Rotable
      Ratio
      based on the Fair Market Value of the Collateral and Rotables set forth in
      such
      Independent Appraiser’s Certificate, the Fair Market Value of Cash Collateral
      held by the Collateral Agent, the principal amount of the Series G Equipment
      Notes outstanding and the principal amount of the Series B Equipment Notes
      outstanding, each as of the applicable Semiannual Valuation Date.

     

    Section
      2.3 Quarterly
      Reports.
      So long
      as the Equipment Notes are outstanding, within ten Business Days after each
      January 1 and July 1, commencing with January 1, 2007, the
      Company shall furnish the Policy Provider and the Trustee a Nonappraisal
      Compliance Report determined as of such January 1 or July 1, as
      applicable, or any date during such ten Business Day period
      thereafter.

     

    Section
      2.4 Special
      Reports.
      The
      Policy Provider (or, if a Policy Provider Default has occurred and is
      continuing, the Mortgagee at the direction of the Controlling Party) may (i)
      if
      the Company defaults in any of its obligations with respect to indebtedness
      of
      the Company in an outstanding principal amount greater than $100,000,000 which
      results in the acceleration of the Company’s obligation to pay such indebtedness
      in full prior to its stated final maturity date, at any time prior to the
      payment of such indebtedness or the reversal of such acceleration, or (ii)
      if an
      Event of Default occurs, at any time while such Event of Default is continuing,
      request by written notice to the Company that the Company furnish to the Policy
      Provider (with copies to the Mortgagee and the Rating Agencies) a special
      Independent Appraiser’s Certificate. Any such special Independent Appraiser’s
      Certificate shall state, in the opinion of such Independent Appraiser, based
      upon use of the Annual Methodology, the following:

     

    
      	 	
              (a)

            	
              the
                Fair Market Value of the Collateral (excluding any Cash Collateral
                and,
                for the avoidance of doubt, any Excluded Parts) as of a specified
                date
                within the Permitted Days preceding the date of such Certificate
                (the
                “Special
                Valuation Date”
                and, together with each Annual Valuation Date and Semiannual Valuation
                Date, the “Valuation
                Dates”);

            

    

     

    
      	 	
              (b)

            	
              the
                Fair Market Value of the Rotables and of the Expendables included
                in the
                Collateral as of the applicable Special Valuation Date (and shall
                separately state the quantity of such Rotables and Expendables);
                and

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
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              (c)

            	
              the
                Fair Market Value of the Serviceable Parts and the Unserviceable
                Parts
                included in the Collateral as of the applicable Special Valuation
                Date.

            

    

     

    The
      Company shall furnish to the Policy Provider (with copies to the Mortgagee
      and
      the Rating Agencies) any such requested special Independent Appraiser’s
      Certificate reasonably promptly after receipt of such request. Notwithstanding
      the foregoing, the Company shall not be obligated (i) to furnish any
      Independent Appraiser’s Certificate under this Section 2.4
      during the Section 1110
      Period or (ii) to deliver pursuant to this Article 2 an Independent
      Appraiser’s Certificate more than twice in any six month period. Upon written
      request of the Policy Provider given to the Company within twenty Business
      Days
      after delivery to the Policy Provider of a special Independent Appraiser’s
      Certificate under this Section 2.4, the Company shall furnish to the Policy
      Provider (with copies to the Mortgagee and the Rating Agencies) a recent Parts
      Inventory Report and a report showing the percentage of the total cost of the
      Pledged Spare Parts located at each Company facility (determined as provided
      in
      the last sentence of Section 2.1) as of the same date as the date of such Parts
      Inventory Report.

     

    Section
      2.5 Information
      from the Mortgagee.
      The
      Fair Market Value of any Investment Securities included in the Cash Collateral
      for purposes of this Agreement shall be determined by the Mortgagee in
      accordance with customary financial market practices. The Mortgagee shall inform
      the Company of the principal amount of the Series G Equipment Notes outstanding,
      the principal amount of the Series B Equipment Notes outstanding and the Fair
      Market Value of any Investment Securities included in the Collateral, in each
      case as of any Valuation Date or for purposes of Section 3.1,
      promptly after the Company’s request for such information.

     

    Section
      2.6 Independent
      Appraiser.
      If the
      Policy Provider (or, if a Policy Provider Default has occurred and is
      continuing, the Mortgagee at the direction of the Controlling Party) has a
      reasonable basis for concluding that the performance of the Independent
      Appraiser that executed the most recent Independent Appraiser’s Certificate
      delivered pursuant to Article 2 was not satisfactory, the Policy Provider
      (or, if a Policy Provider Default has occurred and is continuing, the Mortgagee
      at the direction of the Controlling Party) may designate another Independent
      Appraiser to perform the next required appraisal under this Article 2 by
      written notice given to the Company within 90 days after the date of such
      most recent Independent Appraiser’s Certificate. The Company shall use such
      other Independent Appraiser designated by the Policy Provider (or the Mortgagee,
      as the case may be) for the next appraisal unless it gives the Policy Provider
      (or the Mortgagee, as the case may be) written notice of reasonable objection
      to
      the use of such other Independent Appraiser.

     

    ARTICLE
      3

     

    COLLATERAL
      REQUIREMENTS

     

    Section
      3.1 Maintenance
      of Collateral Ratio and Rotable Ratio.

     

    (a) If
      the
      Collateral Ratio, as most recently determined pursuant to an Appraisal
      Compliance Report, is greater than the Maximum Collateral Ratio or the
      Subordinated Collateral Ratio, as most recently determined pursuant to an
      Appraisal Compliance Report, is greater than 

    
      
        
        

      

      
        
        

        
          

        

      

      
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    the
      Maximum Subordinated Collateral Ratio, the Company shall within 90 days after
      the date of the Appraisal Compliance Report setting forth the calculation of
      such Collateral Ratio or Subordinated Collateral Ratio:

     

    (i) subject
      additional Qualified Spare Parts (the “Additional
      Parts”)
      to the
      Lien of the Trust Indenture in accordance with Section 3.1(c); 

     

    (ii) grant
      a
      security interest to a Collateral Agent in other property to secure the Secured
      Obligations for the benefit of the Note Holders and the Indenture Indemnitees,
      provided that the Company shall have received, with respect to the use for
      purposes of this Section 3.1(a) of such additional collateral and the applicable
      Collateral Agreement, (x) approval of the Policy Provider and (y) Ratings
      Confirmation with respect to the Pass Through Certificates;

     

    (iii) provide
      additional cash and/or Investment Securities to the Mortgagee under the Trust
      Indenture, provided that if the Continental Cash Balance as of the applicable
      Valuation Date was less than $600,000,000, then the amount of Cash Collateral
      included in the Collateral, after giving effect to the action taken pursuant
      to
      Sections 3.1(a) and 3.1(b) with respect to such Valuation Date, shall not exceed
      $20,000,000;

     

    (iv) if
      the
      787 Spare Parts are not then included as Qualified Spare Parts, subject the
      787
      Spare Parts to the Lien of the Trust Indenture as Qualified Spare Parts in
      accordance with Section 3.1(f);

     

    (v) redeem
      some or all of the Equipment Notes pursuant to Section 2.11 of the Trust
      Indenture (provided that, in the case of the Series B Equipment Notes, any
      such redemption before the fifth anniversary of the Issuance Date may be made
      only to the extent necessary to satisfy the applicable Collateral Ratio or
      Subordinated Collateral Ratio requirement); or

     

    (vi) any
      combination of the foregoing;

     

    such
      that, the Collateral Ratio and the Subordinated Collateral Ratio, as
      recalculated giving effect to such action taken pursuant to this Section 3.1(a)
      and, in the case of clauses (i), (ii), (iii) and (iv) of this Section 3.1(a),
      using the Fair Market Value of any such additional Collateral determined
      pursuant to Section 3.1(d) (but otherwise using the information used to
      determine the Collateral Ratio and the Subordinated Collateral Ratio as most
      recently determined pursuant to Article 2), would not be greater than the
      Maximum Collateral Ratio or the Maximum Subordinated Collateral Ratio,
      respectively.

     

    (b) If
      the
      Rotable Ratio, as most recently determined pursuant to an Appraisal Compliance
      Report, is less than the Minimum Rotable Ratio, the Company shall within 90
      days
      after the date of the Appraisal Compliance Report setting forth the calculation
      of such Rotable Ratio:

     

    (i) subject
      additional Rotables (the “Additional
      Rotables”)
      to the
      Lien of the Trust Indenture in accordance with Section 3.1(c);

    
      
        
        

      

      
        
        

        
          

        

      

      
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    (ii) provide
      additional cash and/or Investment Securities to the Mortgagee under the Trust
      Indenture; provided
      that if
      the Continental Cash Balance as of the applicable Valuation Date was less than
      $600,000,000, then the amount of Cash Collateral included in the Collateral,
      after giving effect to the action taken pursuant to Sections 3.1(a) and 3.1(b)
      with respect to such Valuation Date, shall not exceed $20,000,000;

     

    (iii) if
      the
      787 Spare Parts are not then included as Qualified Spare Parts, subject Rotable
      Parts that are 787 Spare Parts to the Lien of the Trust Indenture in accordance
      with Section 3.1(f);

     

    (iv) redeem
      some or all of the Equipment Notes pursuant to Section 2.11 of the Trust
      Indenture (provided that, in the case of the Series B Equipment Notes, any
      such redemption before the fifth anniversary of the Issuance Date may be made
      only to the extent necessary to satisfy the Rotable Ratio requirement);
      or

     

    (v) any
      combination of the foregoing.

     

    such
      that, the Rotable Ratio, as recalculated giving effect to such action taken
      pursuant to this Section 3.1(b) and, in the case of clauses (i), (ii) and (iii)
      of this Section 3.1(b), using the Fair Market Value of any such additional
      Collateral determined pursuant to Section 3.1(d) (but otherwise using the
      information used to determine the Rotable Ratio as most recently determined
      pursuant to Article 2), would not be less than the Minimum Rotable
      Ratio.

     

    (c) In
      order
      to comply with Section 3.1(a)(i) or Section 3.1(b)(i), the Company shall
      (i) add one or more locations as Designated Locations pursuant to
      Section 4.04(b) of the Trust Indenture, in which case the Qualified Spare
      Parts or Rotables, as the case may be, at such new Designated Locations, to
      the
      extent not included in the Pledged Spare Parts on the preceding Valuation Date,
      shall be deemed Additional Parts or Additional Rotables, as the case may be;
      and/or (ii) add to a Designated Location Qualified Spare Parts or Rotables,
      as the case may be, that were not included as Pledged Spare Parts on the
      preceding Valuation Date, which shall be deemed Additional Parts or Additional
      Rotables, as the case may be.

     

    (d) In
      connection with the provision of additional Collateral pursuant to clause (i),
      (ii) or (iv) of Section 3.1(a) or clause (i) or (iii) of Section 3.1(b), the
      Company shall furnish to the Policy Provider (with copies to the Mortgagee
      and
      the Rating Agencies) an Independent Appraiser’s Certificate signed by an
      Independent Appraiser, dated as of a date after the most recent Valuation Date,
      stating, in the opinion of such Independent Appraiser, the Fair Market Value
      of
      such additional Collateral (other than Cash Collateral), as of a date not
      earlier than 60 days prior to the date of such Independent Appraiser’s
      Certificate (but not earlier than the most recent Valuation Date) and using,
      in
      the case of Additional Parts, 787 Spare Parts, Additional Rotables or Rotable
      Parts that are 787 Spare Parts, the Annual Methodology. 

     

    (e) If
      the
      Company shall have provided Cash Collateral pursuant to Section 3.1(a)(iii)
      or
      Section 3.1(b)(ii) (the “Temporary
      Cash Collateral”),
      it
      shall within 90 days after providing such Temporary Cash Collateral (i) in
      the
      case of Section 3.1(a)(iii), take additional action pursuant to Section 3.1(a)
      (excluding the right to provide Cash Collateral) to cause the Collateral

    
      
        
        

      

      
        
        

        
          

        

      

      
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    Ratio
      and
      Subordinated Collateral Ratio, calculated to exclude such Temporary Cash
      Collateral, not to be greater than the Maximum Collateral Ratio and the Maximum
      Subordinated Collateral Ratio, respectively, and (ii) in the case of Section
      3.1(b)(ii), take additional action pursuant to Section 3.1(b) (excluding the
      right to provide Cash Collateral) to cause the Rotable Ratio, calculated to
      exclude such Temporary Cash Collateral, not to be less than the Minimum Rotable
      Ratio.

     

    (f) In
      order
      to comply with Section 3.1(a)(iv) or 3.1(b)(iii), the Company shall subject
      the
      787 Spare Parts or Rotable Parts that are 787 Spare Parts to the Lien of the
      Trust Indenture as Qualified Spare Parts by executing and delivering to the
      Mortgagee a Trust Indenture Collateral Supplement with respect to the 787 Spare
      Parts or Rotable Parts that are 787 Spare Parts, as the case may be,
provided
      that the
      Company’s right under Section 3.1(a)(iv) or 3.1(b)(iii) (whichever shall be the
      first to occur) shall be subject to the approval of the Policy
      Provider.

     

    Section
      3.2 Certain
      Limitations Regarding the Collateral.
      During
      any period commencing on the Closing Date or the date of an Independent
      Appraiser’s Certificate delivered pursuant to Article 2 through the date
      preceding the date of the next Independent Appraiser’s Certificate delivered
      pursuant to Article 2 (each, an “Applicable
      Period”),
      the
      Company agrees that, as of any date during an Applicable Period, the aggregate
      Appraised Value of all Pledged Spare Parts (x) previously during such
      Applicable Period sold, transferred or disposed of (excluding any such
      transaction pursuant to Section 4.04(a)(ii) of the Trust Indenture and
      Pledged Spare Parts deemed sold pursuant to the proviso in Section 4.04(c)
      of the
      Trust Indenture as to which the Company has reacquired title) (collectively,
      “Sales”)
      shall
      not exceed 3% of the Appraised Value of the Collateral, (y) then subject to
      leases to Permitted Lessees or loans to other Persons (together, “Loans”)
      shall
      not exceed 3% of the Appraised Value of the Collateral or (z) previously
      during such Applicable Period moved from a Designated Location to a location
      not
      a Designated Location (excluding those permitted under Sections 4.04(a)(i)
      of the Trust Indenture and clauses (i) and (ii) of Section 4.04(c) of the
      Trust Indenture) (“Moves”)
      shall
      not exceed 3% of the Appraised Value of the Collateral.

     

    Section
      3.3 Fleet
      Reduction.
      If at
      any time after the Closing Date so long as any Series G Equipment Notes are
      outstanding the total number of Aircraft of any Aircraft Model (as defined
      below) in the Company’s in-service fleet during any period of 60 consecutive
      days is less than the Specified Minimum (as defined below) for such Aircraft
      Model (other than due to restrictions on operating such Aircraft imposed by
      the
      FAA or any other instrumentality or agency of the United States), then within
      90
      days after such occurrence the Company shall redeem Series G Equipment Notes
      pursuant to Section 2.11 of the Trust Indenture in an aggregate principal
      amount not less than the principal amount of the Series G Equipment Notes
      outstanding as of a date specified by the Company within 60 days prior to the
      redemption date multiplied by a fraction, the numerator of which shall be the
      Appraised Value of the Pledged Spare Parts that are appropriate for
      incorporation in, installation on, attachment or appurtenance to, or use in
      only
      Aircraft of such Aircraft Model or Engines utilized only on such Aircraft,
      and
      the denominator of which shall be the Appraised Value of the Collateral. If
      at
      any time after the Closing Date so long as any Series B Equipment Notes are
      outstanding the total number of Aircraft of any Aircraft Model (as defined
      below) in the Company’s in-service fleet during any period of 60 consecutive
      days is less than the Specified Minimum (as defined below) for such

    
      
        
        

      

      
        
        

        
          

        

      

      
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    Aircraft
      Model (other than due to restrictions on operating such Aircraft imposed by
      the
      FAA or any other instrumentality or agency of the United States), then within
      90
      days after such occurrence the Company shall redeem Series B Equipment Notes
      pursuant to Section 2.11 of the Trust Indenture in an aggregate principal
      amount not less than the principal amount of the Series B Equipment Notes
      outstanding as of a date specified by the Company within 60 days prior to the
      redemption date multiplied by a fraction, the numerator of which shall be the
      Appraised Value of the Pledged Spare Parts that are appropriate for
      incorporation in, installation on, attachment or appurtenance to, or use in
      only
      Aircraft of such Aircraft Model or Engines utilized only on such Aircraft,
      and
      the denominator of which shall be the Appraised Value of the Collateral. For
      purposes of this Section “Aircraft
      Model”
shall
      mean each of the five models or groups of models of Aircraft set forth below
      and
“Specified
      Minimum”
for
      any
      Aircraft Model shall mean the number of Aircraft set forth opposite such
      Aircraft Model below:

    

    
      	 	
              Aircraft
                Model

            	
              Specified
                Minimum

            
	
              1.

            	
              Boeing
                737-700, Boeing

              737-800
                and Boeing 737-900

              Aircraft

            	
               

               

              63
                Aircraft

            
	
               

              2.

            	
               

              Boeing
                737-300 and

              Boeing
                737-500 Aircraft

            	
               

               

              40
                Aircraft

            
	
               

              3.

            	
               

              Boeing
                757-200 and

              Boeing
                757-300

              Aircraft

            	
               

               

               

              23
                Aircraft

            
	
               

              4.

            	
               

              Boeing
                767-200 and

              Boeing
                767-400 Aircraft

            	
               

               

              13
                Aircraft

            
	
               

              5.

            	
               

              Boeing
                777-200 Aircraft

            	
               

              9
                Aircraft

            

    

     

    Section
      3.4 Inspection.

     

    (a) At
      all
      reasonable times, the Policy Provider (or, if a Policy Provider Default has
      occurred and is continuing, the Mortgagee at the direction of the Controlling
      Party) and its authorized representatives (the “Inspecting
      Parties”)
      may
      (not more than once every 12 months unless an Event of Default has occurred
      and
      is continuing, in which case such inspection right shall not be so limited)
      inspect the Pledged Spare Parts (including without limitation, the Spare Parts
      Documents).

     

    (b) Any
      inspection of the Pledged Spare Parts hereunder shall be limited to a visual
      inspection and shall not include the disassembling, or opening of any
      components, of any Pledged Spare Part, and no such inspection shall interfere
      with the Company’s or any Permitted Lessee’s maintenance and use of the Pledged
      Spare Parts.

     

    (c) With
      respect to such rights of inspection, the Policy Provider (or the Mortgagee,
      as
      the case may be) shall not have any duty or liability to make, or any duty
      or
      liability by reason of not making, any such visit, inspection or
      survey.

    
      
        
        

      

      
        
        

        
          

        

      

      
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    (d) Each
      Inspecting Party shall bear its own expenses in connection with any such
      inspection, provided
      that the
      Company shall reimburse the Inspecting Party for its reasonable out-of-pocket
      expenses in connection with any such inspection during the continuance of an
      Event of Default, except during the Section 1110 Period.

     

    ARTICLE
      4

     

    MISCELLANEOUS

     

    Section
      4.1 Benefits
      of Agreement Restricted.
      Subject
      to the provisions of Section 4.6 hereof, nothing in this Agreement or the other
      Operative Agreements, express or implied, shall give or be construed to give
      to
      any Person, other than the parties hereto, any legal or equitable right, remedy
      or claim under or in respect of this Agreement or under any covenant, condition
      or provision herein contained, all such covenants, conditions and provisions,
      subject to Section 4.6 hereof, being for the sole benefit of the parties hereto,
      provided,
      that
      the following provisions of this Agreement are for the benefit of the Mortgagee
      acting on behalf of the Note Holders of Series B (collectively, the
“Subordinated
      Security Provisions”):
      (i)
      the requirement that appraisals of the Collateral be obtained for purposes
      of
      determining the Maximum Subordinated Collateral Ratio by the tenth Business
      Day
      of April and the tenth Business Day of October in each year, commencing in
      October 2006; (ii) the requirement that the Maximum Subordinated Collateral
      Ratio be complied with in connection with such appraisals; (iii) the second
      sentence of Section 3.3; and (iv) clause (y) of the proviso to Section 4.4
      (it being understood that the other provisions of this Agreement not expressly
      included within clauses (i), (ii), (iii) and (iv) of this proviso, including
      without limitation defined terms, are not Subordinated Security Provisions).
      Upon payment in full of the Series G Equipment Notes and the Policy Provider
      Obligations, if any Series B Equipment Notes are then outstanding, Section
      3.4,
      as then in effect, shall at such time become a Subordinated Security Provision,
      except that each reference therein to the Policy Provider shall be deemed
      changed to the Mortgagee.

     

    Section
      4.2 Appraiser’s
      Certificate.
      Unless
      otherwise specifically provided and subject to Section 11.14 of the Trust
      Indenture, an Independent Appraiser’s Certificate shall be sufficient evidence
      of the Appraised Value and Fair Market Value of any property under this
      Agreement.

     

    Section
      4.3 Notices;
      Waiver.
      Any
      request, demand, authorization, direction, notice, consent, waiver or other
      document provided or permitted by this Agreement to be made upon, given or
      furnished to, or filed with

     

    (a) the
      Company shall be sufficient for every purpose hereunder if in writing and sent
      by personal delivery, by telecopier, by registered or certified mail or by
      nationally recognized overnight courier, postage or courier charges, as the
      case
      may be, prepaid, to the Company at:

     

    Continental
      Airlines, Inc.

    1600
      Smith Street

    Houston,
      Texas 77002

    Attention:
      Treasurer

    Telecopier
      No.: (713) 324-2447

    
      
        
        

      

      
        
        

        
          

        

      

      
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    (b) the
      Policy Provider shall be sufficient for every purpose hereunder if in writing
      and sent by personal delivery, by telecopier, by registered or certified mail
      or
      by nationally recognized overnight courier, postage or courier charges, as
      the
      case may be, prepaid, to the Policy Provider at:

     

    Financial
      Guaranty Insurance Company

    125
      Park
      Avenue

    New
      York,
      New York 10017

    Attention: SF
      Surveillance

    Telecopier
      No.: (212)
      312-3222

     

    (c) the
      Mortgagee shall be sufficient for every purpose hereunder if in writing and
      sent
      by personal delivery, by telecopier, by registered or certified mail or by
      nationally recognized overnight courier, postage or courier charges, as the
      case
      may be, prepaid to the Mortgagee at:

     

    Wilmington
      Trust Company

    Rodney
      Square North

    1100
      North Market Street

    Wilmington,
      Delaware 19890

    Attention:
      Corporate Trust Administration

    Telecopier
      No.: (302)
      651-8882

     

    or
      to any
      of the above parties at any other address or telecopier number subsequently
      furnished in writing by it to each of the other parties listed above. Any such
      delivery shall be deemed made on the date of receipt by the addressee of such
      delivery or of refusal by such addressee to accept delivery.

     

    Section
      4.4 Amendments,
      Etc.
      This
      Agreement may be amended or supplemented, and compliance with any obligation
      in
      this Agreement may be waived, by written instrument executed by the Company,
      the
      Mortgagee and the Policy Provider, provided,
      that
      (x) the Subordinated Security Provisions may not be amended, supplemented
      or waived by the Company, the Mortgagee and the Policy Provider but may be
      amended, supplemented or waived by the Company and the Mortgagee, with the
      consent of the Required Subordinated Holders and without the consent of the
      Policy Provider or the holders of the Series G Equipment Notes and (y) if
      Section 3.2 is amended or supplemented, or compliance therewith waived, any
      transaction entered into subsequent thereto that would not be in compliance
      with
      the provisions of such sentence as in effect on the Closing Date shall not
      be
      permitted if the Subordinated Collateral Ratio, as recalculated giving effect
      to
      such transaction but otherwise using the information used to determine the
      Subordinated Collateral Ratio as most recently determined pursuant to
      Article 2, would be greater than the Maximum Subordinated Collateral
      Ratio.

     

    Section
      4.5 No
      Waiver.
      No
      failure on the part of the Policy Provider (or the Mortgagee, to the extent
      applicable) to exercise, and no delay in exercising any right hereunder shall
      operate as a waiver thereof; nor shall any single or partial exercise of any
      right hereunder preclude any other or further exercise thereof or the exercise
      of any other right. Failure by the 

    
      
        
        

      

      
        
        

        
          

        

      

      
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11

     

    Policy
      Provider (or the Mortgagee, to the extent applicable) at any time or times
      hereafter to require strict performance by the Company with any of the
      provisions, warranties, terms or conditions contained herein shall not waive,
      affect or diminish any right of the Policy Provider (or the Mortgagee, as the
      case may be) at any time or times hereafter to demand strict performance
      thereof, and such right shall not be deemed to have been modified or waived
      by
      any course of conduct or knowledge of the Policy Provider (or the Mortgagee,
      as
      the case may be) or any agent, officer or employee of the Policy Provider (or
      the Mortgagee, as the case may be).

     

    Section
      4.6 Successors
      and Assigns.
      This
      Agreement and all obligations of the Company hereunder shall be binding upon
      the
      successors and permitted assigns of the Company, and shall, together with the
      rights and remedies of the Policy Provider and the Mortgagee hereunder, inure
      to
      the benefit of the Policy Provider, the Mortgagee and their respective
      successors and assigns. The interest of the Company under this Agreement is
      not
      assignable and any attempt to assign all or any portion of this Agreement by
      the
      Company shall be null and void except for an assignment in connection with
      a
      merger, consolidation or conveyance, transfer or lease of all or substantially
      all the Company’s assets permitted under the Trust Indenture. Upon the
      occurrence of a Policy Provider Default, all rights and obligations of the
      Policy Provider under this Agreement shall
      automatically, without any notice, demand or other action, be assigned to and
      assumed by the Mortgagee, and the Mortgagee shall
      take or
      refrain from taking action under this Agreement at the direction of the
      Controlling Party.

     

    Section
      4.7 Governing
      Law.
      THIS
      AGREEMENT IS BEING DELIVERED IN THE STATE OF NEW YORK. THIS AGREEMENT SHALL
      BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
      NEW
      YORK.

     

    Section
      4.8 Effect
      of Headings.
      The
      Article and Section headings and the Table of Contents contained in this
      Agreement have been inserted for convenience of reference only, and are and
      shall be without substantive meaning or content of any kind whatsoever and
      are
      not a part of this Agreement.

     

    Section
      4.9 Counterpart
      Originals.
      This
      Agreement may be signed in two or more counterparts, each of which shall be
      deemed an original, but all of which shall together constitute one and the
      same
      agreement. Delivery of an executed counterpart of a signature page to this
      Agreement by telecopier shall be effective as delivery of an original executed
      counterpart of this Agreement.

     

    Section
      4.10 Severability.
      The
      provisions of this Agreement are severable, and if any clause or provision
      shall
      be held invalid, illegal or unenforceable in whole or in part in any
      jurisdiction, then such invalidity or unenforceability shall affect in that
      jurisdiction only such clause or provision, or part thereof, and shall not
      in
      any manner affect such clause or provision in any other jurisdiction or any
      other clause or provision of this Agreement in any jurisdiction, to the fullest
      extent permitted by law.

     

    [SIGNATURE
      PAGE FOLLOWS]

    
      
        
        

      

      
        
        

        
          

        

      

      
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12

     

    IN
      WITNESS WHEREOF, the parties have caused this Agreement to be duly executed
      and
      delivered all as of the date first above written.

     

    
      
         

        
          	 	 	 
	 	CONTINENTAL
                  AIRLINES, INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
                  
Name:
	 	
                  Title: 

                

        

      

    

     

     

    
      
        
           

          
            	 	 	 
	 	
                    FINANCIAL
                      GUARANTY
                      INSURANCE

                    COMPANY,
                      as Policy
                      Provider

                  
	 
 	 
 	 
 
	 	By:  	 
	 	
                    

                    Name:
	 	
                    Title: 

                  

          

        

      

      
        
           

           

          
            
              
                 

                
                  	 	 	 
	 	
                          WILMINGTON
                            TRUST
                            COMPANY,

                            
                            as Mortgagee

                        
	 
 	 
 	 
 
	 	By:  	 
	 	
                          
Name:
	 	
                          Title: 

                        

                

              

            

            
               

            

          

        

         

      

    

    
      
        
          

        

        
        

      

      
        
        

        
          

        

      

      
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    Appendix
      I to the 

    Collateral
      Maintenance Agreement

     

    [Address
      to Policy Provider,

    Mortgagee
      and the Rating

    Agencies]

     

    Appraisal
      Compliance Report Under the Collateral

    Maintenance
      Agreement

     

    Ladies
      and Gentlemen:

     

    We
      refer
      to the Collateral Maintenance Agreement, dated as of June 9, 2006 (the
“Agreement”),
      among
      Continental Airlines, Inc. (the “Company”),
      Financial Guaranty Insurance Company and Wilmington Trust Company, as Mortgagee.
      Terms defined in the Agreement and used herein have such respective defined
      meanings. The Company hereby certifies that:

     

    
      	
              1.

            	
              This
                Compliance Report is accompanied by an Independent Appraiser’s Certificate
                (the “Relevant
                Appraisal”)
                dated [___________]. The Valuation Date for purposes of the Relevant
                Appraisal was [___________] (the “Relevant
                Valuation Date”).

            

    

     

    
      	
              2.

            	
              The
                following sets forth the calculation of the Collateral Ratio as of
                the
                Relevant Valuation Date:

            

    

     

    
      	
               

              a.

            	
               

              The
                aggregate principal amount of all Series G Equipment Notes outstanding
                as
                of the Relevant Valuation Date

            	 	
               

              

$[_______]

            
	
               

              b.

            	
               

              The
                Fair Market Value of the Cash Collateral as of the Relevant Valuation
                Date

            	 	
               

              

$[_______]

            
	
               

              c.

            	
               

              The
                Fair Market Value of the Collateral (excluding Cash Collateral) as
                of the
                Relevant Valuation Date, as set forth in the accompanying Independent
                Appraiser’s Certificate

            	 	
               

              

$[_______]

            
	
               

              d.

            	
               

              The
                Collateral Ratio

              ((a
                - b) ÷ c)

            	 	
               

              
[_______]%

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
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2

     

    
      	
              3.

            	
              The
                following sets forth the calculation of the Subordinated Collateral
                Ratio
                as of the Relevant Valuation Date:

            

    

     

    
      
        	
                 

                a.

              	
                 

                
                  The
                    aggregate principal amount of all Series G Equipment Notes and
                    Series B
                    Equipment Notes outstanding as of the Relevant Valuation
                    Date

                

              	 	
                 

                

$[_______]

              
	
                 

                b.

              	
                 

                
                  The
                    Fair Market Value of the Cash Collateral as of the Relevant Valuation
                    Date

                

              	 	
                 

                

$[_______]

              
	
                 

                c.

              	
                 

                
                  The
                    Fair Market Value of the Collateral (excluding Cash Collateral)
                    as of the
                    Relevant Valuation Date, as set forth in the accompanying Independent
                    Appraiser’s Certificate

                

              	 	
                 

                

$[_______]

              
	
                 

                d.

              	
                 

                The
                  Subordinated Collateral Ratio ((a - b) ÷ c)

              	 	
                 

                
[_______]%

              

      

    

     

    
      	
              4.

            	
              The
                following sets forth the calculation of the Rotable Ratio as of the
                Relevant Valuation Date:

            

    

    
    

     

    
      
        
          	
                   

                  a.

                	
                   

                  
                    
                      The
                        Fair Market Value of the Rotables as of the Relevant Valuation
                        Date, as
                        set forth in the accompanying Independent Appraiser’s
                        Certificate

                    

                  

                	 	
                   

                  

$[_______]

                
	
                   

                  b.

                	
                   

                  
                    
                      The
                        aggregate principal amount of all Series G Equipment Notes
                        outstanding as
                        of the Relevant Valuation Date

                    

                  

                	 	
                   

                  

$[_______]

                
	
                   

                  c.

                	
                   

                  
                    
                      The
                        Fair Market Value of the Cash Collateral as of the Relevant
                        Valuation
                        Date

                    

                  

                	 	
                   

                  

$[_______]

                
	
                   

                  d.

                	
                   

                  
                    The
                      Rotable Ratio

                    (a
                      ÷ b - c)

                  

                	 	
                   

                  
[_______]%

                

        

         

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
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              5.

            	
              The
                Continental Cash Balance as of the Relevant Valuation Date was
                $[___________].

            

    

     

    Dated: [__________]

     

    
      
        
          
            	 	Very truly yours,
	 	 	 
	 	CONTINENTAL
                    AIRLINES, INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
                    
Name:
	 	
                    Title: 

                  

          

        

      

    

     

    
 

    
      
        
          

        

        
        

      

      
        
        

        
          

        

      

      
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    Appendix
      II to the

    Collateral
      Maintenance Agreement

     

    [Address
      to Policy Provider,

    Mortgagee
      and the Rating

    Agencies]

     

    Nonappraisal
      Compliance Report Under the Collateral

    Maintenance
      Agreement

     

    Ladies
      and Gentlemen:

     

    We
      refer
      to the Collateral Maintenance Agreement, dated as of June 9, 2006 (the
Agreement”),
      among
      Continental Airlines, Inc. (the “Company”),
      Financial Guaranty Insurance Company and Wilmington Trust Company, as Mortgagee.
      Terms defined in the Agreement and used herein have such respective defined
      meanings. The Company hereby certifies that:

     

    
      	
              1.

            	
              The
                most recent Independent Appraiser’s Certificate furnished by the Company
                (the “Relevant
                Appraisal”)
                [was dated January 25, 2006] [pursuant to Article 2 of the Agreement
                was
                dated [______________] (the “Relevant
                Date”).]
                The Valuation Date for purposes of the Relevant Appraisal was
                [___________] (the “Relevant
                Valuation Date”).
                

            

    

     

    
      	
              2.

            	
              The
                aggregate Appraised Value of all Collateral determined as of the
                Relevant
                Valuation Date pursuant to the Agreement [, as subsequently supplemented
                pursuant to Section 3.1 of the Agreement,] is
                $[________].

            

    

     

    
      	
              3.

            	
              During
                the period (the “Relevant
                Period”)
                beginning on the [Closing Date] [Relevant Date] and ending on [_______]
                (the “Determination
                Date”).

            

    

     

    
      	 	
              i)

            	
              Sales
                did not exceed 3% of the Appraised Value of the Collateral,
                and

            

    

     

    
      	 	
              ii)

            	
              Moves
                did not exceed 3% of the Appraised Value of the
                Collateral.

            

    

     

    
      	
              4.

            	
              Loans
                outstanding on the Determination Date did not exceed 3% of the Appraised
                Value of the Collateral.

            

    

     

    
      	
              5.

            	
              Attached
                hereto as Exhibit 1 is a report that correctly sets forth as of the
                Determination Date the percentage of the average cost of all Pledged
                Spare
                Parts consisting of Rotables, Expendables and all Pledged Spare Parts
                located at each Company facility.

            

    

     

    
      	
              6.

            	
              Attached
                hereto as Exhibit 2 is a report that correctly sets forth the
                following information as of the Determination Date with respect to
                each
                Pledged Spare Part model among the 500 Pledged Spare Part models
                with the
                highest aggregate Appraised Value:

            

    

     

    
      	 	
              i)

            	
              Manufacturer’s
                part number;

            

    

     

    
      	 	
              ii)

            	
              the
                Company’s part tracking number;

            

    

     

    
      	 	
              iii)

            	
              part
                description;

            

    

     

    
      
 

      
        
          
            

          

          
          

        

        
          
          

          
            

          

        

        
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Page 2

    
      	 	
              iv)

            	
              related
                aircraft model(s);

            

    

     

    
      	 	
              v)

            	
              classification
                as Rotable or Expendable;

            

    

     

    
      	 	
              vi)

            	
              quantity
                on hand; and

            

    

     

    
      	 	
              vii)

            	
              the
                Company’s average cost.

            

    

     

    
       

      
        
          
            
              	 	Very truly yours,
	 	 	 
	 	CONTINENTAL
                      AIRLINES, INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
                      
Name:
	 	
                      Title:Reference Agency Agreement, dated as of June 9, 2006

     

     

    REFERENCE
      AGENCY AGREEMENT

     

    REFERENCE
      AGENCY AGREEMENT, dated as of June 9, 2006, among Continental Airlines, Inc.,
      a
      Delaware corporation (the “Company”),
      Wilmington Trust Company, a Delaware banking corporation (“WTC”),
      as
      Subordination Agent under the Intercreditor Agreement referred to below, WTC,
      as
      Mortgagee (as defined in the Trust Indenture and Mortgage referred to below),
      and WTC, as reference agent hereunder (the “Reference
      Agent”).

     

    W I T N E S S E T H:

     

    WHEREAS,
      certain terms used herein have the defined meanings as provided in Section
      1
      below;

     

    WHEREAS,
      concurrently with the execution and delivery of this Agreement, the Company
      is
      entering into the Note Purchase Agreement, dated as of the date hereof (the
      “Note
      Purchase Agreement”),
      with
      WTC, as Mortgagee, WTC, as Pass Through Trustee under each of the Pass Through
      Trust Agreements referred to therein, and WTC, as Subordination Agent under
      the
      Intercreditor Agreement referred to therein, which contemplates, among other
      things, the making of a secured loan to the Company by WTC, as Pass Through
      Trustee under each of the Pass Through Trust Agreements;

     

    WHEREAS,
      concurrently with the execution and delivery of this Agreement, the Company
      is
      entering into the Trust Indenture and Mortgage, dated as of the date hereof
      (the
“Trust
      Indenture”)
      with
      WTC, as Mortgagee, which provides for, among other things, the issuance by
      the
      Company of Series G Equipment Notes and Series B Equipment Notes
      secured by, among other things, certain spare aircraft parts, and bearing
      interest at a rate per annum based on LIBOR, as determined pursuant to this
      Agreement;

     

    WHEREAS,
      concurrently with the execution and delivery of this Agreement, the Class G
      Pass Through Trust and the Class B Pass Through Trust have been created
      pursuant to the Basic Pass Through Trust Agreement and the applicable Trust
      Supplement to facilitate the issuance and sale of Pass Through Certificates
      pursuant thereto; and

     

    WHEREAS,
      the Company and the Underwriter have entered into the Underwriting Agreement,
      which provides that the Company will cause the Pass Through Trustee under the
      Class G Pass Through Trust and the Pass Through Trustee under the
      Class B Pass Through Trust to issue and sell the Class G Certificates
      and the Class B Certificates, respectively, to the Underwriter on the
      Issuance Date.

     

    NOW,
      THEREFORE, in consideration of the premises and of the mutual covenants and
      agreements contained herein, the parties hereto hereby agree as
      follows:

     

    SECTION
      1. Definitions.
      Unless
      otherwise defined herein, all capitalized terms used but not defined herein
      have
      the meanings assigned to such terms in the Trust Indenture. The

    
      
        
        

      

      
        
        

        
          

        

      

      
        2

      

    

     

    conventions
      of construction and usage set forth in the Indenture are incorporated by
      reference herein. In addition, the following terms shall have the meanings
      specified below:

     

    “Class
      G Certificate”
means
      the Pass Through Certificates issued by the Class G Pass Through
      Trust.

     

    “Class
      B Certificate”
means
      the Pass Through Certificates issued by the Class B Pass Through
      Trust.

     

    “Interest
      Period”
means
      (i) in the case of the first Interest Period, the period commencing on (and
      including) the Issuance Date and ending on (but excluding) the first Payment
      Date following the Issuance Date and (ii) in the case of each subsequent
      Interest Period, the period commencing on (and including) the last day of the
      immediately preceding Interest Period, and ending on (but excluding) the next
      Payment Date.

     

    “Interest
      Rate Determination Date”
means,
      with respect to any Interest Period, the second London Banking Day prior to
      the
      first day of such Interest Period.

     

    “LIBOR”
means
      the rate determined pursuant to Section 6(b).

     

    “London
      Banking Day”
means
      any day on which commercial banks are open for general business (including
      dealings in foreign exchange and foreign currency deposits) in London,
      England.

     

    “Payment
      Date”
means
      each March 2, June 2, September 2 and December 2, commencing on September 2,
      2006, provided
      that if
      any such day is not a Business Day, then the immediately succeeding Business
      Day.

     

    “Reference
      Banks”
means
      Barclays Bank, JPMorgan Chase Bank and Deutsche Bank (or, if any such bank
      is
      not at the relevant date a major bank in the London interbank market, another
      major bank in the London interbank market in lieu thereof selected by the
      Reference Agent in good faith and in a commercially reasonable
      manner).

     

    “Representative
      Amount”
means
      an amount that is representative for a single transaction in the London
      interbank market at the relevant time.

     

    “Series
      B Interest Rate”
has
      the
      meaning assigned to such term in Section 6(b) of this
      Agreement.

     

    “Series
      G Interest Rate”
has
      the
      meaning assigned to such term in Section 6(b) of this
      Agreement.

     

    “Telerate”
means
      page 3750 on the Telerate Service (or such other page as may replace that page
      on that service, or such other service as may be nominated by the British
      Banker’s Association for the purpose of displaying rates or prices comparable to
      that).

    
      
        
        

      

      
        
        

        
          

        

      

      
        3

      

    

     

    SECTION
      2. Appointment
      of Reference Agent.
      The
      Company hereby appoints WTC as the Reference Agent, and WTC hereby accepts
      such
      appointment and agrees to perform the duties and obligations of Reference Agent
      set forth in Section 6.

     

    SECTION
      3. Status
      of Reference Agent.
      Any
      acts taken by the Reference Agent under this Agreement, including the
      calculation of any LIBOR, shall be deemed to have been taken by the Reference
      Agent solely in its capacity as an agent acting on behalf of the Company and
      shall not create or imply any obligation to, or any agency, fiduciary or trust
      relationship with, any of the owners or holders of the Equipment Notes,
      Class G Certificates or Class B Certificates.

     

    SECTION
      4. Reference
      Agent Fees and Expenses.
      In
      consideration of the Reference Agent’s performance of the services provided for
      under this Agreement, the Company shall pay to the Reference Agent an annual
      fee
      set forth under a separate agreement between the Company and WTC. In addition,
      the Company shall reimburse the Reference Agent for all reasonable out-of-pocket
      expenses, disbursements and advances (including reasonable legal fees and
      expenses) incurred or made by the Reference Agent from time to time in
      connection with the services rendered by it under this Agreement, except any
      expenses, disbursements, or advances attributable to its negligence or wilful
      misconduct.

     

    SECTION
      5. Rights
      and Liabilities of Reference Agent.
      In the
      absence of negligence or wilful misconduct on the part of the Reference Agent,
      its directors, officers, employees and agents, such persons may conclusively
      rely, as to the truth of the statements expressed in, and shall be fully
      protected and shall incur no liability for, or in respect of, any action taken,
      omitted to be taken, or suffered to be taken by it, in reliance upon, any
      written order, instruction, notice, request, direction, statement, certificate,
      consent, report, affidavit or other instrument, paper, document or
      communication, reasonably believed by it in good faith to be genuine, from
      the
      Company and conforming to the requirements of this Agreement. Any written order,
      instruction, notice, request, direction, statement, certificate, consent,
      report, affidavit or other instrument, paper, document or communication from
      the
      Company or given by it and sent, delivered or directed to the Reference Agent
      under, pursuant to, or as permitted by, any provision of this Agreement shall
      be
      sufficient for purposes of this Agreement if such written order, instruction,
      notice, request, direction, statement, certificate, consent, report, affidavit
      or other instrument, paper, document or communication is in writing and signed
      by any officer of the Company. The Reference Agent may consult with counsel
      satisfactory to it and the advice (to be confirmed in writing) or opinion of
      such counsel shall constitute full and complete authorization and protection
      of
      the Reference Agent with respect to any action taken, omitted to be taken,
      or
      suffered to be taken by it hereunder in good faith and in accordance with and
      in
      reliance upon the advice to be confirmed in writing or opinion of such counsel.
      The Reference Agent shall not be liable for any error resulting from use of
      or
      reliance on a source or publication required to be used under Section 6 to
      the
      extent such use of or reliance on such source or publication is contemplated
      by
      Section 6.

     

    SECTION
      6. Duties
      of Reference Agent.
      (a) The
      duties and obligations of the Reference Agent shall be determined solely by
      the
      express provisions of this Agreement, and no implied covenants or obligations
      shall be read into this Agreement against the Reference Agent. Subject to their
      duty to act without negligence, neither the Reference Agent nor its directors,
      

    
      
        
        

      

      
        
        

        
          

        

      

      
        4

      

    

     

    officers,
      employees and agents guarantee the correctness or completeness of any data
      or
      other information furnished hereunder.

     

    (b) For
      the
      purpose of calculating the rate of interest payable on the Series G
      Equipment Notes (the “Series G
      Interest Rate”)
      and
      the rate of interest payable on the Series B Equipment Notes (the
“Series B
      Interest Rate”),
      “LIBOR”
for
      each Interest Period that commences after the Issuance Date (it being understood
      that the Series G Interest Rate and the Series B Interest Rate for the
      Interest Period commencing on the Issuance Date shall be determined pursuant
      to
      the Underwriting Agreement) shall mean the rate determined in accordance with
      the following provisions:

     

    (i) The
      Reference Agent will determine LIBOR for each such Interest Period as the rate
      for deposits in U.S. Dollars for a period of three months which appears on
      the
      Telerate Page 3750 as of 11:00 a.m., London time, on the Interest Rate
      Determination Date for such Interest Period.

     

    (ii) If
      the
      rate referred to in Section 6(b)(i) does not appear on the Telerate Page 3750,
      the Reference Agent will determine LIBOR on the basis of the rates at which
      deposits in U.S. Dollars are offered by the Reference Banks at approximately
      11:00 a.m., London time, on the Interest Rate Determination Date for such
      Interest Period to prime banks in the London interbank market for a period
      of
      three months commencing on the first day of such Interest Period and in a
      Representative Amount. The Reference Agent will request the principal London
      office of each of the Reference Banks to provide a quotation of its rate. If
      at
      least two such quotations are provided, the rate for that Interest Period will
      be the arithmetic mean of the quotations. If fewer than two quotations are
      provided as requested, the rate for that Interest Period will be the arithmetic
      mean of the rates quoted by major banks in New York City, selected by the
      Reference Agent in good faith and in a commercially reasonable manner, at
      approximately 11:00 a.m., New York City time, on the first day of such Interest
      Period for loans in U.S. Dollars to leading European banks for a period of
      three
      months commencing on the first day of such Interest Period and in a
      Representative Amount, except that, if the banks so selected by the Reference
      Agent are not quoting as mentioned above, LIBOR shall be the floating rate
      of
      interest in effect for the last preceding Interest Period.

     

    (c) As
      soon
      as practicable after 11:00 a.m. (London time) on each Interest Rate
      Determination Date, the Reference Agent will calculate the Class G Interest
      Rate for such Interest Period, which shall be applicable to the Series G
      Equipment Notes, and, accordingly, the Class G Certificates for such
      Interest Period, and the Class B Interest Rate for such Interest Period,
      which shall be applicable to the Series B Equipment Notes, and, accordingly,
      the
      Class B Certificates for such Interest Period. The Reference Agent’s
      determination of LIBOR, the Class G Interest Rate and the Class B Interest
      Rate (in the absence of negligence, wilful default, bad faith or manifest error)
      shall be conclusive and binding upon all parties.

     

    (d) As
      promptly as is practicable after the determination thereof, the Reference Agent
      shall give notice of the applicable LIBOR, the Class G Interest Rate and
      the next Payment Date to the Company, the Subordination Agent, each Liquidity
      Provider, the Policy Provider, the Pass Through Trustees and the
      Mortgagee.

    
      
        
        

      

      
        
        

        
          

        

      

      
        5

      

    

     

    (e) As
      promptly as is practicable after the determination thereof, the Reference Agent
      shall give notice of the applicable LIBOR, the Class B Interest Rate and
      the next Payment Date to the Company, the Subordination Agent, the Pass Through
      Trustees and the Mortgagee.

     

    (f) The
      Reference Agent shall determine Break Amount if and when required under the
      Trust Indenture.

     

    SECTION
      7. Amendment
      of the Equipment Notes.
      The
      Company shall deliver to the Reference Agent, at least three Business Days
      prior
      to the effective date of any amendment of the interest rate terms of the
      Class G Pass Through Trust, Series G Equipment Notes, Class B
      Pass Through Trust or Series B Equipment Notes, written notice of such
      amendment describing the terms of such amendment in reasonable detail, and
      a
      certification by the Company that such amendment is in compliance with the
      terms
      of the Class G Pass Through Trust, the Class B Pass Through Trust or
      the Trust Indenture (as applicable).

     

    SECTION
      8. Ownership
      of Certificates.
      The
      Reference Agent, its officers, directors, employees and shareholders may become
      the owners of or acquire any interest in any Certificates, with the same rights
      that it or they would have if it were not the Reference Agent, and may engage
      or
      be interested in any financial or other transaction with the Company as freely
      as if it were not the Reference Agent.

     

    SECTION
      9. Term;
      Termination, Resignation or Removal of Reference Agent.
      (a)
      This Agreement shall have a noncancellable term commencing on the date hereof
      and expiring on payment in full of the Series G Equipment Notes and Series
      B Equipment Notes issued under the Trust Indenture or, if earlier, termination
      of the Trust Indenture. During such term, this Agreement shall not be terminable
      by any party hereto except as expressly provided in Section 9(b).

     

    (b) The
      Reference Agent may at any time resign by giving written notice to the Company,
      the Subordination Agent, the Pass Through Trustees and the Mortgagee, specifying
      therein the date on which its desired resignation shall become effective;
provided
      that
      such notice shall be given no less than 30 days prior to said effective date
      unless the Reference Agent, the Company, the Subordination Agent, the Pass
      Through Trustees and the Mortgagee otherwise agree in writing. The Company
      may
      remove the Reference Agent at any time by giving written notice to the Reference
      Agent and to the holders of the Class G Certificates and Class B
      Certificates and specifying the effective date of such removal, which shall
      be
      at least 30 days after the date of notice; provided,
      however,
      that no
      resignation by or removal of the Reference Agent shall become effective prior
      to
      the date of appointment by the Company, as provided in Section 10, of a
      successor reference agent and the acceptance of such appointment by such
      successor reference agent; and provided,
      further,
      that in
      the event that an instrument of acceptance by a successor reference agent shall
      not have been delivered pursuant to Section 10 within 90 days after the giving
      of such notice of resignation or removal, the Reference Agent may petition
      any
      court of competent jurisdiction for the appointment of a successor Reference
      Agent. The provisions of Sections 5, 11 and 13 hereof shall remain in effect
      following termination of this Agreement or the earlier resignation or removal
      of
      the Reference Agent.

     

    

      
        
          
          

        

        
          
          

          
            

          

        

        
          6

        

      

    

     

    SECTION
      10. Appointment
      of Successor Reference Agent.
      In the
      event of the resignation by or removal of the Reference Agent pursuant to
      Section 9, the Company shall promptly appoint a successor reference agent.
      Any
      successor reference agent appointed by the Company following resignation by
      or
      removal of the Reference Agent pursuant to the provisions of Section 10 shall
      execute and deliver to the incumbent Reference Agent, the Company, the
      Subordination Agent, the Pass Through Trustees and the Mortgagee an instrument
      accepting such appointment. Thereupon, such successor reference agent shall,
      without any further act, deed or conveyance, become vested with all the
      authority, rights, powers, immunities, duties and obligations of the Reference
      Agent and with like effect as if originally named as Reference Agent hereunder,
      and the incumbent Reference Agent shall thereupon be obligated to transfer
      and
      deliver such relevant records or copies thereof maintained by the Reference
      Agent in connection with the performance of its obligations hereunder. The
      Company shall notify the Rating Agencies of any resignation by or removal of
      the
      Reference Agent under Section 9 and of the appointment of and acceptance by
      any
      successor Reference Agent pursuant to this Section 10.

     

    SECTION
      11. Indemnification.
      The
      Company shall indemnify and hold harmless the Reference Agent, its directors,
      officers, employees and agents from and against any and all actions, claims,
      damages, liabilities, judgments, losses, costs, charges and expenses (including
      reasonable legal fees and expenses) relating to or arising out of actions or
      omissions from actions in any capacity hereunder, except actions, claims,
      damages, liabilities, judgments, losses, costs, charges and expenses caused
      by
      the negligence or wilful misconduct of the Reference Agent, its directors,
      officers, employees or agents. The Reference Agent shall be indemnified and
      held
      harmless by the Company for any error resulting from use of or reliance on
      a
      source or publication required to be used under Section 6. The Reference Agent
      shall be indemnified and held harmless by the Company for, or in respect of,
      any
      actions taken, omitted to be taken or suffered to be taken in good faith by
      the
      Reference Agent in reliance upon (a) advice to be confirmed in writing or
      opinion of counsel or (b) a written instruction from the Company.

     

    SECTION
      12. Merger,
      Consolidation or Sale of Business by Reference Agent.
      Any
      corporation into which the Reference Agent may be merged or consolidated or
      any
      corporation resulting from any merger or consolidation to which the Reference
      Agent may be a party, or any corporation to which the Reference Agent may sell
      or otherwise transfer all or substantially all of its assets and corporation
      trust business, shall, to the extent permitted by applicable law, become the
      Reference Agent under this Agreement without the execution or filing of any
      paper or any further act by the parties hereto. The Reference Agent shall give
      notice in writing to the Company, the Subordination Agent, the Pass Through
      Trustees and the Mortgagee of any such merger, consolidation or
      sale.

     

    SECTION
      13. Miscellaneous.
      (a) If
      there should develop any conflict between the Reference Agent and any other
      Person relating to the rights or obligations of the Reference Agent in
      connection with calculation of the Series G Interest Rate or the
      Series B Interest Rate, the terms of this Agreement shall govern such
      rights and obligations.

     

    (b) The
      Reference Agent agrees to cooperate with the Company and its agents, employees,
      directors and officers, including by providing such information as may
      reasonably be 

    
      
        
        

      

      
        
        

        
          

        

      

      
        7

      

    

     

    requested
      to permit the Company or such agents, employees, directors and officers to
      monitor the Reference Agent’s compliance with its obligations under this
      Agreement.

     

    (c) The
      Reference Agent shall not assign or delegate or otherwise subcontract this
      Agreement or all or any part of its rights or obligations hereunder to any
      Person without the prior written consent of the Company.

     

    (d) THIS
      AGREEMENT SHALL IN ALL RESPECTS BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
      WITH, THE LAWS OF THE STATE OF NEW YORK, INCLUDING ALL MATTERS OF CONSTRUCTION,
      VALIDITY AND PERFORMANCE.

     

    (e) This
      Agreement may be executed in any number of counterparts and by different parties
      hereto in separate counterparts, each of which when so executed shall be deemed
      to be an original and all of which taken together shall constitute one and
      the
      same agreement. Delivery of an executed counterpart of a signature page to
      this
      Agreement by telecopier shall be effective as delivery of a manually executed
      counterpart of this Agreement.

    
      
        
        

      

      
        
        

        
          

        

      

      
        8

      

    

     

    IN
      WITNESS WHEREOF, this Agreement has been entered into as of the date first
      set
      forth above.

     

    
      
        
          
            
              	 	 	 
	 	
                      CONTINENTAL
                        AIRLINES, INC.

                    
	 
 	 
 	 
 
	 	
                      By:

                    	 
	 	Name:	 
	 	Title:	 

            

             

            
              
                
                  
                    
                      
                        	 	 	 
	 	
                                WILMINGTON
                                  TRUST COMPANY, as 
Reference Agent

                              
	 
 	 
 	 
 
	 	
                                By:

                              	 
	 	Name:	 
	 	Title:	 

                      

                      
                         

                        
                          
                            
                              
                                
                                  
                                    	 	 	 
	 	
                                            WILMINGTON
                                              TRUST COMPANY, as 
Subordination Agent

                                          
	 
 	 
 	 
 
	 	
                                            By:

                                          	 
	 	Name:	 
	 	Title:	 

                                  

                                  
                                    
                                       

                                      
                                        
                                          
                                            
                                              
                                                
                                                  	 	 	 
	 	
                                                          WILMINGTON
                                                            TRUST COMPANY, as 
Mortgagee

                                                        
	 
 	 
 	 
 
	 	
                                                          By:

                                                        	 
	 	Name:	 
	 	Title:

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