Document:

Exhibit 4.6 - Note Purchase Agreement

    
      EXECUTION
        COPY

      

      

      ________________________________________________________________

      

      

      

      NOTE
        PURCHASE AGREEMENT

      

      Dated
        as
        of September 22, 2005

      

      Among

      

      CONTINENTAL
        AIRLINES, INC.,

      

      WILMINGTON
        TRUST COMPANY,

      as
        Pass
        Through Trustee under the

      Pass
        Through Trust Agreement

      

      WILMINGTON
        TRUST COMPANY,

      as
        Subordination Agent

      

      WELLS
        FARGO BANK NORTHWEST, NATIONAL ASSOCIATION,

      as
        Escrow
        Agent

      

      and

      

      WILMINGTON
        TRUST COMPANY,

      as
        Paying
        Agent

      

      

      
 

      ________________________________________________________________

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      INDEX
        TO NOTE PURCHASE AGREEMENT

       

      Page

      

        
          	
                  SECTION
                    1.  Financing of
                    Aircraft

                	
                  3

                
	
                  SECTION
                    2.  Conditions
                    Precedent

                	
                  9

                
	
                  SECTION
                    3.  Representations and
                    Warranties

                	
                  9

                
	
                  SECTION
                    4.  Covenants

                	
                  17

                
	
                  SECTION
                    5.  Notices

                	
                  19

                
	
                  SECTION
                    6.  Expenses

                	
                  19

                
	
                  SECTION
                    7.  Further Assurances

                	
                  21

                
	
                  SECTION
                    8.  Miscellaneous

                	
                  21

                
	
                  SECTION
                    9.  Governing Law

                	
                  23

                

        

      Schedules

       

      
        
          	
                  Schedule
                    I Aircraft

                
	
                  Schedule
                    II Trust
                    Supplement

                
	
                  Schedule
                    III Mandatory
                    Economic Terms

                
	
                  Schedule
                    IV Mandatory
                    Document Terms

                

        

      

       

      Annex

      
        
          	
                  Annex
                    A Definitions

                

        

      

       

      Exhibits

       

      
        
          	
                  Exhibit
                    A Form
                    of Participation Agreement

                
	
                  Exhibit
                    B Form
                    of Lease

                
	
                  Exhibit
                    C Form
                    of Trust Indenture

                
	
                  Exhibit
                    D-1 Form
                    of Purchase Agreement Assignment (Existing
                    Aircraft)

                
	
                  Exhibit
                    D-2 Form
                    of Initial Purchase Agreement Assignment
                    (New Aircraft)

                
	
                  Exhibit
                    D-3 Form
                    of Purchase Agreement Assignment (New Aircraft)

                
	
                  Exhibit
                    E Form
                    of Trust Agreement

                
	
                  Exhibit
                    F Form
                    of Delivery Notice

                

        

        

          
            
              
                

              

              
              

            

            
              
              

              
                

              

            

            
              
                

                

              

            

          

      

      NOTE
        PURCHASE AGREEMENT

       

      This
        NOTE
        PURCHASE AGREEMENT, dated as of September 22, 2005, among (i) CONTINENTAL
        AIRLINES, INC., a Delaware corporation (the "Company"),
        (ii)
        WILMINGTON TRUST COMPANY ("WTC"),
        a
        Delaware banking corporation, not in its individual capacity except as otherwise
        expressly provided herein, but solely as trustee (in such capacity together
        with
        its successors in such capacity, the "Pass
        Through Trustee")
        under
        the Pass Through Trust Agreement (as defined below), (iii) WILMINGTON TRUST
        COMPANY, a Delaware banking corporation, as subordination agent and trustee
        (in
        such capacity together with its successors in such capacity, the "Subordination
        Agent")
        under
        the Intercreditor Agreement (as defined below), (iv) WELLS FARGO BANK NORTHWEST,
        NATIONAL ASSOCIATION, a national banking association, as Escrow Agent (in
        such
        capacity together with its successors in such capacity, the "Escrow
        Agent"),
        under
        the Escrow and Paying Agent Agreement (as defined below) and (v) WILMINGTON
        TRUST COMPANY, a Delaware banking corporation, as Paying Agent (in such capacity
        together with its successors in such capacity, the "Paying
        Agent")
        under
        the Escrow and Paying Agent Agreement.

       

      W
        I T N E
        S S E T H:

       

      WHEREAS,
        capitalized terms used but not defined herein shall have the meanings ascribed
        to such terms in Annex A hereto;

       

      WHEREAS,
        the Company has (i) previously taken delivery of the 21 Embraer EMB-145 XR
        aircraft listed in Part A of Schedule I hereto (the "Existing
        Aircraft"),
        each
        of which has been leased to the Company pursuant to a separate lease agreement
        (collectively, the "Existing
        Leases")
        and
        (ii) obtained commitments from the Manufacturer pursuant to the Purchase
        Agreement for the delivery of the eight Embraer EMB-145 XR aircraft listed
        in
        Part B of Schedule I hereto (together with any aircraft substituted therefor
        in
        accordance with the Purchase Agreement, the "New
        Aircraft"
        and,
        together with the Existing Aircraft, the "Aircraft");

       

      WHEREAS,
        the Manufacturer, which is obligated to arrange lease financing of the Aircraft
        for the Company, wishes to arrange debt financing with respect to a portion
        of
        the purchase price of the Aircraft and, at the request of the Manufacturer,
        the
        Company has entered into this Agreement;

      
        
          
          

        

        
          
          

          
            

          

        

        
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      WHEREAS,
        pursuant to the Basic Pass Through Trust Agreement and the Trust Supplement
        set
        forth in Schedule II hereto, and concurrently with the execution and delivery
        of
        this Agreement, a grantor trust (the "Pass
        Through Trust")
        has
        been created to facilitate certain of the transactions contemplated hereby,
        including, without limitation, the issuance and sale of pass through
        certificates pursuant thereto (the "Certificates")
        to
        provide for a portion of the financing of the Aircraft;

       

      WHEREAS,
        the Company has entered into the Underwriting Agreement dated as of September
        14, 2005 (the "Underwriting
        Agreement")
        with
        the underwriter (the "Underwriter")
        named
        therein, which provides that the Company will cause the Pass Through Trustee
        to
        issue and sell the Certificates to the Underwriter on the Issuance
        Date;

       

      WHEREAS,
        concurrently with the execution and delivery of this Agreement, (i) the Escrow
        Agent and the Depositary have entered into a Deposit Agreement, dated as
        of the
        Issuance Date, relating to the Pass Through Trust (the "Deposit
        Agreement")
        whereby the Escrow Agent agreed to direct the Underwriter to make certain
        deposits referred to therein on the Issuance Date (the "Initial
        Deposits")
        and to
        permit the Pass Through Trustee to make additional deposits from time to
        time
        thereafter (the Initial Deposits together with such additional deposits are
        collectively referred to as the "Deposits")
        and
        (ii) the Pass Through Trustee, the Underwriter, the Paying Agent and the
        Escrow
        Agent have entered into the Escrow and Paying Agent Agreement, dated as of
        the
        Issuance Date, relating to the Pass Through Trust (the "Escrow
        and Paying Agent Agreement")
        whereby, among other things, (a) the Underwriter agreed to deliver an amount
        equal to the amount of the Initial Deposits to the Depositary on behalf of
        the
        Escrow Agent and (b) the Escrow Agent, upon the Depositary receiving such
        amount, agreed to deliver escrow receipts to be affixed to each
        Certificate;

       

      WHEREAS,
        upon receipt of a Delivery Notice with respect to an Aircraft, subject to
        the
        terms and conditions of this Agreement, the Pass Through Trustee will enter
        into
        the applicable Financing Agreements relating to such Aircraft; 

       

      WHEREAS,
        upon the financing of each Aircraft, the Pass Through Trustee will fund its
        purchase of Equipment Notes with the proceeds of one or more Deposits withdrawn
        by the Escrow Agent under the Deposit Agreement (or, if financed on the Issuance
        Date, with a portion of the proceeds from the offering of the Certificates);
        and

      
        
          
          

        

        
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      WHEREAS,
        concurrently with the execution and delivery of this Agreement, (i) Landesbank
        Baden-Württemberg (the "Liquidity
        Provider")
        has
        entered into a revolving credit agreement for the benefit of the
        Certificateholders with the Subordination Agent, as agent for the Pass Through
        Trustee (the "Liquidity
        Facility"),
        and
        (ii) the Pass Through Trustee, the Liquidity Provider and the Subordination
        Agent have entered into the Intercreditor Agreement, dated as of the date
        hereof
        (the "Intercreditor
        Agreement");

       

      NOW,
        THEREFORE, in consideration of the foregoing premises and the mutual agreements
        herein contained and other good and valuable consideration, the receipt and
        adequacy of which are hereby acknowledged, the parties hereto agree as
        follows:

       

      SECTION
        1. Financing
        of Aircraft.
        (a) The
        Company confirms that (i) it has previously taken delivery of the Existing
        Aircraft under the Purchase Agreement and, as of the Issuance Date, leases
        as
        lessee the Existing Aircraft pursuant to the Existing Leases and (ii) ExpressJet
        Airlines, Inc. has entered into the Purchase Agreement with the Manufacturer
        pursuant to which ExpressJet Airlines, Inc. has agreed to acquire, and the
        Manufacturer has agreed to deliver, the New Aircraft in the months specified
        in
        Schedule I hereto, all on and subject to terms and conditions specified in
        the
        Purchase Agreement. The Company agrees to finance the Aircraft in the manner
        provided herein, all on and subject to the terms and conditions hereof and
        of
        the relevant Financing Agreements.

       

      (b) In
        furtherance of the foregoing, the Company agrees to give the parties hereto,
        the
        Depositary and each of the Rating Agencies not less than two Business Days'
        prior notice substantially in the form of Exhibit F hereto (a "Delivery
        Notice")
        of the
        scheduled closing date (the "Scheduled
        Closing Date")
        (or,
        in the case of a substitute Delivery Notice under Section 1(e) or (f) hereof,
        one Business Day's prior notice) in respect of the financing of each Aircraft
        under this Agreement, which notice shall: 

       

      (i)
        specify the Scheduled Closing Date of such Aircraft (which shall be a Business
        Day before the Cut-off Date) on which the financing therefor in the manner
        provided herein shall be consummated;

       

      (ii)
        instruct the Pass Through Trustee to instruct the Escrow Agent to provide
        a
        Notice of Purchase Withdrawal to the Depositary with respect to the Equipment
        Notes to be issued 

      
        
          
          

        

        
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      in
        connection with the financing of such Aircraft (except in the case of any
        such
        financing on the Issuance Date);

       

      (iii)
        instruct the Pass Through Trustee to enter into the Participation Agreement
        included in the Financing Agreements with respect to such Aircraft in such
        form
        and at such a time on or before the Scheduled Closing Date specified in such
        Delivery Notice and to perform its obligations thereunder; and

       

      (iv)
        specify the principal amount of the Equipment Notes to be issued, and purchased
        by the Pass Through Trustee, in connection with the financing of such Aircraft
        scheduled to be financed on such Scheduled Closing Date (which shall in all
        respects comply with the Mandatory Economic Terms).

       

      Notwithstanding
        the foregoing, in the case of any Aircraft to be financed hereunder on the
        Issuance Date, the Delivery Notice therefor may be delivered to the parties
        hereto on the Issuance Date.

       

      (c) Upon
        receipt of a Delivery Notice, the Pass Through Trustee shall, and shall cause
        the Subordination Agent to, enter into and perform their obligations under
        the
        Participation Agreement specified in such Delivery Notice, provided
        that
        such Participation Agreement and the other Financing Agreements to be entered
        into pursuant to such Participation Agreement shall be in the forms thereof
        annexed hereto in all material respects with such changes therein as shall
        have
        been agreed upon by the related Owner Participant and the Company and, if
        modified in any material respect, as to which Rating Agency Confirmation
        shall
        have been obtained from each Rating Agency by the Company (to be delivered
        by
        the Company to the Pass Through Trustee on or before the relevant Closing
        Date,
        it being understood that if Rating Agency Confirmation shall have been received
        with respect to any Financing Agreements and such Financing Agreements are
        utilized for subsequent New Aircraft (or Substitute Aircraft) without material
        modifications, no additional Rating Agency Confirmation shall be required);
        provided,
        however,
        that
        the relevant Financing Agreements as executed and delivered shall not vary
        the
        Mandatory Economic Terms and shall contain the Mandatory Document Terms.
        The
        Company shall pay the reasonable costs and expenses of the Rating Agencies
        in
        connection with obtaining any such Rating Agency Confirmation. With respect
        to
        each Aircraft, the Company shall cause WTC (or such other person that meets
        the
        eligibility requirements to act as loan trustee under the Trust Indenture)
        to
        execute as Loan Trustee the Financing Agreements relating to such Aircraft
        to
        which such Loan Trustee is intended 

      
        
          
          

        

        
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      to
        be a
        party, and shall concurrently therewith execute such Financing Agreements
        to
        which the Company is intended to be a party and perform its respective
        obligations thereunder. Upon the request of either Rating Agency, the Company
        shall deliver or cause to be delivered to each Rating Agency a true and complete
        copy of each Financing Agreement relating to the financing of each Aircraft
        together with a true and complete set of the closing documentation (including
        legal opinions) delivered to the related Loan Trustee, Subordination Agent
        and
        Pass Through Trustee under the related Participation Agreement.

       

      (d) [Intentionally
        omitted.]

       

      (e) If
        after
        giving any Delivery Notice, there shall be a delay in the delivery of the
        New
        Aircraft referred to therein, or if on the Scheduled Closing Date of an Aircraft
        the financing thereof in the manner contemplated hereby shall not be consummated
        for whatever reason, the Company shall give the parties hereto prompt notice
        thereof. Concurrently with the giving of such notice of postponement or
        subsequently, the Company shall give the parties hereto a substitute Delivery
        Notice specifying the date to which the financing of such Aircraft shall
        have
        been re-scheduled (which shall be a Business Day before the Cut-off Date
        on
        which the Escrow Agent shall be entitled to withdraw one or more Deposits
        under
        the Deposit Agreement to enable the Pass Through Trustee to fund its purchase
        of
        the related Equipment Notes). Upon receipt of any such notice of postponement,
        the Pass Through Trustee shall comply with its obligations under Section
        5.01 of
        the Trust Supplement and thereafter the financing of such Aircraft, as specified
        in such substitute Delivery Notice, shall take place on the re-scheduled
        closing
        date therefor (all on and subject to the terms and conditions of the relevant
        Financing Agreements) unless further postponed as provided herein.

       

      (f) Anything
        in this Section 1 to the contrary notwithstanding, the Company shall have
        the
        right to accept delivery of a New Aircraft under the Purchase Agreement on
        the
        Delivery Date thereof by utilization of bridge financing of such New Aircraft
        and promptly thereafter give the parties hereto a Delivery Notice specifying
        a
        Scheduled Closing Date not later than 90 days after the Delivery Date of
        such
        New Aircraft and no later than the Cut-off Date and otherwise complying with
        the
        provisions of Section 1(b) hereof. All other terms and conditions of this
        Note
        Purchase Agreement shall apply to the financing of any such New Aircraft
        on the
        re-scheduled closing date therefor except (i) the re-scheduled closing date
        shall be 

      
        
          
          

        

        
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      deemed
        the Delivery Date of such New Aircraft for all purposes of this Section 1
        and
        (ii) the related Financing Agreements shall be amended to reflect the original
        delivery of such New Aircraft to the Company.

       

      (g) If
        the
        scheduled Delivery Date for any New Aircraft is delayed (a) more than 30
        days
        beyond the last day of the month set forth opposite such New Aircraft under
        the
        heading "Scheduled Delivery Month" in Schedule I hereto or (b) beyond
        May 31, 2006, the Company may identify for delivery a substitute aircraft
        therefor meeting the following conditions (a "Substitute
        Aircraft"):
        (i) a
        Substitute Aircraft must be an Embraer EMB-145 XR aircraft manufactured after
        the date of this Agreement and (ii) the Company shall be obligated to obtain
        Rating Agency Confirmation in respect of the replacement of any New Aircraft
        by
        Substitute Aircraft. Upon the satisfaction of the conditions set forth above
        with respect to a Substitute Aircraft, the New Aircraft to be replaced shall
        cease to be subject to this Agreement and all rights and obligations of the
        parties hereto concerning such New Aircraft shall cease, and such Substitute
        Aircraft shall become and thereafter be subject to the terms and conditions
        of
        this Agreement to the same extent as such New Aircraft.

       

      (h) The
        Company shall have no liability for the failure of the Pass Through Trustee
        to
        purchase Equipment Notes with respect to any Aircraft or Substitute
        Aircraft.

       

      (i) The
        parties agree that if, in connection with the financing of a New Aircraft
        or
        Substitute Aircraft, any Owner Participant who is to be a party to any Financing
        Agreement shall be a "Citizen of the United States" within the meaning of
        Section 40102(a)(15) of the Act, then the applicable Financing Agreements
        may be
        modified, consistent with the Mandatory Document Terms, to eliminate the
        restrictions on the Owner Participant's right to control the Owner Trustee
        and
        to make other customary changes to reflect that the Owner Participant is
        a
        "Citizen of the United States".

       

      (j) Anything
        herein to the contrary notwithstanding, the Company shall not have the right,
        and shall not be entitled, at any time to request the issuance of Equipment
        Notes to the Pass Through Trustee in an aggregate principal amount in excess
        of
        the amount of the Deposits then available for withdrawal by the Escrow Agent
        under and in accordance with the provisions of the Deposit
        Agreement.

      
        
          
          

        

        
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      SECTION
        2. Conditions
        Precedent.
        The
        obligation of the Pass Through Trustee to enter into, and to cause the
        Subordination Agent to enter into, any Participation Agreement as directed
        pursuant to a Delivery Notice and to perform its obligations thereunder is
        subject to satisfaction of the following conditions:

       

      (a) no
        Triggering Event shall have occurred; and

       

      (b) the
        Company shall have delivered a certificate to such Pass Through Trustee and
        the
        Liquidity Provider stating that (i) such Participation Agreement and the
        other Financing Agreements to be entered into pursuant to such Participation
        Agreement do not vary the Mandatory Economic Terms and contain the Mandatory
        Document Terms and (ii) any substantive modification of such Financing
        Agreements from the forms of Financing Agreements attached to this Agreement
        do
        not materially and adversely affect the Certificateholders, and such
        certification shall be true and correct.

       

      Anything
        herein to the contrary notwithstanding, the obligation of the Pass Through
        Trustee to purchase Equipment Notes shall terminate on the Cut-off
        Date.

       

      SECTION
        3. Representations
        and Warranties.
        (a) The
        Company represents and warrants that:

       

      (i)
        the
        Company is duly incorporated, validly existing and in good standing under
        the
        laws of the State of Delaware and is a "citizen of the United States" as
        defined
        in Section 40102(a)(15) of the Act, and has the full corporate power, authority
        and legal right under the laws of the State of Delaware to execute and deliver
        this Agreement and each Financing Agreement to which it will be a party and
        to
        carry out the obligations of the Company under this Agreement and each Financing
        Agreement to which it will be a party;

       

      (ii)
        the
        execution and delivery by the Company of this Agreement and the performance
        by
        the Company of its obligations under this Agreement have been duly authorized
        by
        the Company and will not violate its Certificate of Incorporation or by-laws
        or
        the provisions of any indenture, mortgage, contract or other agreement to
        which
        it is a party or by which it is bound; and

      
        
          
          

        

        
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      (iii)
        this Agreement constitutes the legal, valid and binding obligation of the
        Company, enforceable against it in accordance with its terms, except as the
        same
        may be limited by applicable bankruptcy, insolvency, reorganization, moratorium
        or similar laws affecting the rights of creditors generally and by general
        principles of equity, whether considered in a proceeding at law or in equity.
        

       

      (b) WTC
        represents and warrants that:

       

      (i)
        WTC
        is duly incorporated, validly existing and in good standing under the laws
        of
        the State of Delaware and is a "citizen of the United States" as defined
        in
        Section 40102(a)(15) of the Act, and has the full corporate power, authority
        and
        legal right under the laws of the State of Delaware and the United States
        pertaining to its banking, trust and fiduciary powers to execute and deliver
        this Agreement and each Financing Agreement to which it will be a party and
        to
        carry out the obligations of WTC, in its capacity as Subordination Agent,
        Pass
        Through Trustee or Paying Agent, as the case may be, under this Agreement
        and
        each Financing Agreement to which it will be a party;

       

      (ii)
        the
        execution and delivery by WTC, in its capacity as Subordination Agent, Pass
        Through Trustee or Paying Agent, as the case may be, of this Agreement and
        the
        performance by WTC, in its capacity as Subordination Agent, Pass Through
        Trustee
        or Paying Agent, as the case may be, of its obligations under this Agreement
        have been duly authorized by WTC, in its capacity as Subordination Agent,
        Pass
        Through Trustee or Paying Agent, as the case may be, and will not violate
        its
        articles of association or by-laws or the provisions of any indenture, mortgage,
        contract or other agreement to which it is a party or by which it is bound;
        and

       

      (iii)
        this Agreement constitutes the legal, valid and binding obligations of WTC,
        in
        its capacity as Subordination Agent, Pass Through Trustee or Paying Agent,
        as
        the case may be, enforceable against it in accordance with its terms, except
        as
        the same may be limited by applicable bankruptcy, insolvency, reorganization,
        moratorium or similar laws affecting the rights of creditors generally and
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        general 

      
        
          
          

        

        
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      principles
        of equity, whether considered in a proceeding at law or in equity.

       

      (c) The
        Pass
        Through Trustee hereby confirms to each of the other parties hereto that
        its
        representations and warranties set forth in Section 7.15 of the Basic Pass
        Through Trust Agreement and Section 5.04 of the Trust Supplement are true
        and
        correct as of the date hereof.

       

      (d) The
        Subordination Agent represents and warrants that:

       

      (i)
        the
        Subordination Agent is duly incorporated, validly existing and in good standing
        under the laws of the State of Delaware, and has the full corporate power,
        authority and legal right under the laws of the State of Delaware and the
        United
        States pertaining to its banking, trust and fiduciary powers to execute and
        deliver this Agreement and each Financing Agreement to which it is or will
        be a
        party and to perform its obligations under this Agreement and each Financing
        Agreement to which it is or will be a party;

       

      (ii)
        this
        Agreement has been duly authorized, executed and delivered by the Subordination
        Agent; this Agreement constitutes the legal, valid and binding obligations
        of
        the Subordination Agent enforceable against it in accordance with its terms,
        except as the same may be limited by applicable bankruptcy, insolvency,
        reorganization, moratorium or similar laws affecting the rights of creditors
        generally and by general principles of equity, whether considered in a
        proceeding at law or in equity;

       

      (iii)
        none of the execution, delivery and performance by the Subordination Agent
        of
        this Agreement contravenes any law, rule or regulation of the State of Delaware
        or any United States governmental authority or agency regulating the
        Subordination Agent's banking, trust or fiduciary powers or any judgment
        or
        order applicable to or binding on the Subordination Agent and do not contravene
        the Subordination Agent's articles of association or by-laws or result in
        any
        breach of, or constitute a default under, any agreement or instrument to
        which
        the Subordination Agent is a party or by which it or any of its properties
        may
        be bound;

      
        
          
          

        

        
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      (iv)
        neither the execution and delivery by the Subordination Agent of this Agreement
        nor the consummation by the Subordination Agent of any of the transactions
        contemplated hereby requires the consent or approval of, the giving of notice
        to, the registration with, or the taking of any other action with respect
        to,
        any Delaware governmental authority or agency or any federal governmental
        authority or agency regulating the Subordination Agent's banking, trust or
        fiduciary powers;

       

      (v)
        there
        are no Taxes payable by the Subordination Agent imposed by the State of Delaware
        or any political subdivision or taxing authority thereof in connection with
        the
        execution, delivery and performance by the Subordination Agent of this Agreement
        (other than franchise or other taxes based on or measured by any fees or
        compensation received by the Subordination Agent for services rendered in
        connection with the transactions contemplated by the Intercreditor Agreement
        or
        the Liquidity Facility), and there are no Taxes payable by the Subordination
        Agent imposed by the State of Delaware or any political subdivision thereof
        in
        connection with the acquisition, possession or ownership by the Subordination
        Agent of any of the Equipment Notes (other than franchise or other taxes
        based
        on or measured by any fees or compensation received by the Subordination
        Agent
        for services rendered in connection with the transactions contemplated by
        the
        Intercreditor Agreement or the Liquidity Facility); and

       

      (vi)
        there are no pending or threatened actions or proceedings against the
        Subordination Agent before any court or administrative agency which individually
        or in the aggregate, if determined adversely to it, would materially adversely
        affect the ability of the Subordination Agent to perform its obligations
        under
        this Agreement.

       

      (e) The
        Escrow Agent represents and warrants that:

       

      (i)
        the
        Escrow Agent is a national banking association duly incorporated, validly
        existing and in good standing under the laws of the United States and has
        the
        full corporate power, authority and legal right under the laws of the United
        States pertaining 

      
        
          
          

        

        
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      to
        its
        banking, trust and fiduciary powers to execute and deliver this Agreement,
        the
        Deposit Agreement and the Escrow and Paying Agent Agreement (collectively,
        the
        "Escrow
        Agent Agreements")
        and to
        carry out the obligations of the Escrow Agent under each of the Escrow Agent
        Agreements;

       

      (ii)
        the
        execution and delivery by the Escrow Agent of each of the Escrow Agent
        Agreements and the performance by the Escrow Agent of its obligations hereunder
        and thereunder have been duly authorized by the Escrow Agent and will not
        violate its articles of association or by-laws or the provisions of any
        indenture, mortgage, contract or other agreement to which it is a party or
        by
        which it is bound; and

       

      (iii)
        each of the Escrow Agent Agreements constitutes the legal, valid and binding
        obligations of the Escrow Agent enforceable against it in accordance with
        its
        terms, except as the same may be limited by applicable bankruptcy, insolvency,
        reorganization, moratorium or similar laws affecting the rights of creditors
        generally and by general principles of equity, whether considered in a
        proceeding at law or in equity.

       

      (f) The
        Paying Agent represents and warrants that:

       

      (i)
        the
        Paying Agent is duly incorporated, validly existing and in good standing
        under
        the laws of the State of Delaware and has the full corporate power, authority
        and legal right under the laws of the United States pertaining to its banking,
        trust and fiduciary powers to execute and deliver this Agreement and the
        Escrow
        and Paying Agent Agreement (collectively, the "Paying
        Agent Agreements")
        and to
        carry out the obligations of the Paying Agent under each of the Paying Agent
        Agreements;

       

      (ii)
        the
        execution and delivery by the Paying Agent of each of the Paying Agent
        Agreements and the performance by the Paying Agent of its obligations hereunder
        and thereunder have been duly authorized by the Paying Agent and will not
        violate its articles of association or by-laws or the provisions of any
        indenture, mortgage, contract or other agreement to which it is a party or
        by
        which it is bound; and

      
        
          
          

        

        
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      (iii)
        each of the Paying Agent Agreements constitutes the legal, valid and binding
        obligations of the Paying Agent enforceable against it in accordance with
        its
        terms, except as the same may be limited by applicable bankruptcy, insolvency,
        reorganization, moratorium or similar laws affecting the rights of creditors
        generally and by general principles of equity, whether considered in a
        proceeding at law or in equity.

       

      SECTION
        4. Covenants.
        (a) The
        Company covenants with each of the other parties hereto that:

       

      (i)
        [Intentionally omitted.]

       

      (ii)
        subject to Section 4(a)(iv) of this Agreement, the Company shall at all times
        maintain its corporate existence and shall not wind up, liquidate or dissolve
        or
        take any action, or fail to take any action, that would have the effect of
        any
        of the foregoing;

       

      (iii)
        the
        Company shall at all times remain a U.S. Air Carrier (as defined in the
        Financing Agreements) and shall at all times be otherwise certificated and
        registered to the extent necessary to entitle the Owner Trustee (and the
        Loan
        Trustee as assignee of the Owner Trustee's rights under each Lease) to the
        rights afforded to lessors of aircraft equipment under Section
        1110;

       

      (iv)
        Section 13.2.1 of each Lease is hereby incorporated by reference
        herein;

       

      (v)
        the
        Company agrees to provide written notice to each of the parties hereto of
        the
        occurrence of the Cut-off Date no later than one Business Day after the date
        thereof.

       

      (b) WTC,
        in
        its individual capacity, covenants with each of the other parties to this
        Agreement that it will, immediately upon obtaining knowledge of any facts
        that
        would cast doubt upon its continuing status as a "citizen of the United States"
        as defined in Section 40102(a)(15) of the Act and promptly upon public
        disclosure of negotiations in respect of any transaction which would or might
        adversely affect such status, notify in writing all parties hereto of all
        relevant matters in connection therewith. Upon WTC giving any such notice,
        WTC
        shall, subject to Section 8.02 of any Trust Indenture then entered into,
        resign
        as Loan Trustee in respect of such Trust Indenture. 

      
        
          
          

        

        
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      SECTION
        5. Notices.
        Unless
        otherwise specifically provided herein, all notices required or permitted
        by the
        terms of this Agreement shall be in English and in writing, and any such
        notice
        shall become effective upon being delivered personally or, if promptly confirmed
        by mail, when dispatched by facsimile or other written telecommunication,
        addressed to such party hereto at its address or facsimile number set forth
        below the signature of such party at the foot of this Agreement or to such
        other
        address or facsimile number as such party may hereafter specify by notice
        to the
        other parties.

       

      SECTION
        6. Expenses.
        (a) The
        Company agrees to pay to the Subordination Agent when due, to the extent
        not
        paid when due by the Manufacturer, an amount or amounts equal to the fees
        payable to the Liquidity Provider under Section 2.03 of the Liquidity Facility
        and the related Fee Letter (as defined in the Intercreditor Agreement)
        multiplied by a fraction the numerator of which shall be the then outstanding
        aggregate amount of the Deposits under the Deposit Agreement and the denominator
        of which shall be the sum of (x) the then outstanding aggregate principal
        amount
        of the Equipment Notes issued under all of the Trust Indentures and (y) the
        then
        outstanding aggregate amount of the Deposits under the Deposit
        Agreement.

       

      (b) So
        long
        as no Equipment Notes have been issued in respect of any Aircraft, the Company
        agrees to pay (i) to the Subordination Agent when due, to the extent not
        paid
        when due by the Manufacturer, (A) the amount equal to interest on any Downgrade
        Advance (other than any Applied Downgrade Advance) payable under Section
        3.07 of
        the Liquidity Facility minus Investment Earnings while such Downgrade Advance
        shall be outstanding, (B) the amount equal to interest on any Special
        Termination Advance (other than any Applied Special Termination Advance)
        payable
        under Section 3.07 of the Liquidity Facility minus Investment Earnings from
        such
        Special Termination Advance, (C) the
        amount equal to interest on any Early Termination Advance (other than any
        Applied Early Termination Advance) payable under Section 3.07 of the Liquidity
        Facility minus Investment Earnings from such Early Termination Advance; and
        (D) any
        other amounts owed to the Liquidity Provider by the Subordination Agent as
        borrower under the Liquidity Facilities (other than amounts due as repayment
        of
        advances thereunder or as interest on such advances, except to the extent
        payable pursuant to clause (A), (B) or (C), (ii) all compensation and
        reimbursement of expenses, disbursements and advances payable by the Company
        under the Pass Through Trust Agreements, (iii) all compensation and
        reimbursement of expenses and disbursements 

      
        
          
          

        

        
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      payable
        to the Subordination Agent under the Intercreditor Agreement except with
        respect
        to any income or franchise taxes incurred by the Subordination Agent in
        connection with the transactions contemplated by the Intercreditor Agreement
        and
        (iv) in the event the Company requests any amendment to any Operative Agreement,
        all reasonable fees and expenses (including, without limitation, fees and
        disbursements of counsel) of the Escrow Agent and/or the Paying Agent in
        connection therewith. For purposes of this Section 6(b), the
        terms
“Applied Downgrade Advance”, “Applied Early Termination Advance”, “Applied
        Special Termination Advance”, “Downgrade Advance”, “Early Termination Advance”,
“Investment Earnings”
        and
“Special Termination Advance” shall have the meanings specified in the
        Liquidity Facility.

       

      SECTION
        7. Further
        Assurances.
        Each
        party hereto shall duly execute, acknowledge and deliver, or shall cause
        to be
        executed, acknowledged and delivered, all such further agreements, instruments,
        certificates or documents, and shall do and cause to be done such further
        acts
        and things, in any case, as any other party hereto shall reasonably request
        in
        connection with its administration of, or to carry out more effectually the
        purposes of, or to better assure and confirm unto it the rights and benefits
        to
        be provided under, this Agreement. 

       

      SECTION
        8. Miscellaneous.
        (a)
        Provided that the transactions contemplated hereby have been consummated,
        and
        except as otherwise provided for herein, the representations, warranties
        and
        agreements herein of the Company, the Subordination Agent, the Escrow Agent,
        the
        Paying Agent and the Pass Through Trustee, and the Company's, the Subordination
        Agent's, the Escrow Agent's, the Paying Agent's and the Pass Through Trustee's
        obligations under any and all thereof, shall survive the expiration or other
        termination of this Agreement and the other agreements referred to
        herein.

       

      (b) This
        Agreement may be executed in any number of counterparts (and each of the
        parties
        hereto shall not be required to execute the same counterpart). Each counterpart
        of this Agreement, including a signature page executed by each of the parties
        hereto, shall be an original counterpart of this Agreement, but all of such
        counterparts together shall constitute one instrument. Neither this Agreement
        nor any of the terms hereof may be terminated, amended, supplemented, waived
        or
        modified orally, but only by an instrument in writing signed by the party
        against which the enforcement of the termination, amendment, supplement,
        waiver
        or modification is 

      
        
          
          

        

        
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      sought.
        The index preceding this Agreement and the headings of the various Sections
        of
        this Agreement are for convenience of reference only and shall not modify,
        define, expand or limit any of the terms or provisions hereof. The terms
        of this
        Agreement shall be binding upon, and shall inure to the benefit of, the Company
        and its successors and permitted assigns, the Pass Through Trustee and its
        successors as Pass Through Trustee (and any additional trustee appointed)
        under
        any of the Pass Through Trust Agreements, the Escrow Agent and its successors
        as
        Escrow Agent under the Escrow and Paying Agent Agreement, the Paying Agent
        and
        its successors as Paying Agent under the Escrow and Paying Agent Agreement
        and
        the Subordination Agent and its successors as Subordination Agent under the
        Intercreditor Agreement.

       

      (c) This
        Agreement is not intended to, and shall not, provide any person not a party
        hereto (other than the Underwriter and each of the beneficiaries of Section
        6
        hereof) with any rights of any nature whatsoever against any of the parties
        hereto, and no person not a party hereto (other than the Underwriter and
        each of
        the beneficiaries of Section 6 hereof) shall have any right, power or privilege
        in respect of, or have any benefit or interest arising out of, this Agreement.
        

       

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

      
        
          
          

        

        
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      IN
        WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
        executed by their respective officers thereunto duly authorized as of the
        day
        and year first above written.

       

      

        CONTINENTAL
          AIRLINES, INC.

        

        By___________________________________

        Name:

        Title:

        Address: 1600
          Smith Street, HQSFN

                         
          Houston, TX 77002

                         
          Attention: Treasurer

                         
          Facsimile: (713) 324-2447

         

        WILMINGTON
          TRUST COMPANY,

        not
          in
          its individual capacity, except as otherwise 

        provided
          herein, but solely as Pass Through Trustee 

         

        By___________________________________

        Name:

        Title:

        Address: Rodney
          Square North

                        
          1100 North Market Street

                        
          Wilmington, Delaware 19890

                        
          Attention: Corporate Trust

                        
          Administration

                        
          Facsimile: (302) 651-8882

         

      

      
        
          
          

        

        
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        WILMINGTON
          TRUST COMPANY, 

         

        not
          in
          its individual capacity, except as otherwise 

        provided
          herein, but solely as Subordination Agent 

        

        By_____________________________________

        Name:

        Title:

        Address: Rodney
          Square North

                        
          1100 North Market Street

                        
          Wilmington, Delaware 19890

                        
          Attention: Corporate Trust

                        
          Administration

                        
          Facsimile: (302) 651-8882

         

        WELLS
          FARGO BANK NORTHWEST, 

        NATIONAL
          ASSOCIATION,

        as
          Escrow
          Agent 

        

        By______________________________________

        Name:

        Title:

        Address: MAC:
          U1228-120

                        
          299 South Main Street

                        
          12th Floor

                         Salt
          Lake City, Utah 84111

                        
          Attention: Corporate
          Trust Services

                        
          Facsimile: (801) 246-5053

      

       

      
        
          
          

        

        
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                  WILMINGTON
                    TRUST COMPANY, 

                  as
                    Paying Agent 

                	 

        

         

         

         

        
          	 	 By:	___________________________________________	 
	 	
                   Name:

                	 	 
	 	 Title:	 	 
	 	 Address:	 Rodney
                  Square North
                  1100
                    North Market Street

                  Wilmington,
                    Delaware 19890

                  Attention:
                    Corporate Trust Administration

                  Facsimile:
                     (302) 651-8882

                	 

        

      

       

       

                             

      
                              
          

                              
          

                              
          

      

      

      
        
          
            

          

          
          

        

        
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      SCHEDULE
        I to

      Note
        Purchase Agreement

       

      AIRCRAFT

       

      Part
        A
        - Existing Aircraft

      

      
        	
                Registration
                  Number

              	
                Manufacturer's
                  Serial Number

              	
                Scheduled

                Delivery
                  Month

              
	
                 

                N14171

              	
                 

                14500859

              	
                 

                Previously
                  Delivered

              
	
                 

                N12172

              	
                 

                14500864

              	
                 

                Previously
                  Delivered

              
	
                 

                N14173

              	
                 

                14500872

              	
                 

                Previously
                  Delivered

              
	
                 

                N14174

              	
                 

                14500876

              	
                 

                Previously
                  Delivered

              
	
                 

                N12175

              	
                 

                14500878

              	
                 

                Previously
                  Delivered

              
	
                 

                N11176

              	
                 

                14500881

              	
                 

                Previously
                  Delivered

              
	
                 

                N14177

              	
                 

                14500888

              	
                 

                Previously
                  Delivered

              
	
                 

                N16178

              	
                 

                14500889

              	
                 

                Previously
                  Delivered

              
	
                 

                N14179

              	
                 

                14500896

              	
                 

                Previously
                  Delivered

              
	
                 

                N14180

              	
                 

                14500900

              	
                 

                Previously
                  Delivered

              
	
                 

                N11181

              	
                 

                14500904

              	
                 

                Previously
                  Delivered

              
	
                 

                N33182

              	
                 

                14500909

              	
                 

                Previously
                  Delivered

              
	
                 

                N16183

              	
                 

                14500914

              	
                 

                Previously
                  Delivered

              
	
                 

                N11184

              	
                 

                14500917

              	
                 

                Previously
                  Delivered

              
	
                 

                N17185

              	
                 

                14500922

              	
                 

                Previously
                  Delivered

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          Table
            of Contents

        

      

      

      
        	
                 

                N14186

              	
                 

                14500924

              	
                 

                Previously
                  Delivered

              
	
                 

                N11187

              	
                 

                14500927

              	
                 

                Previously
                  Delivered

              
	
                 

                N14188

              	
                 

                14500929

              	
                 

                Previously
                  Delivered

              
	
                 

                N11189

              	
                 

                14500931

              	
                 

                Previously
                  Delivered

              
	
                 

                N27190

              	
                 

                14500934

              	
                 

                Previously
                  Delivered

              
	
                 

                N11191

              	
                 

                14500935

              	
                 

                Previously
                  Delivered

              

      

       

      Part
        B
        - New Aircraft

       

      
        	
                 

                N11192

              	
                 

                14500936

              	
                 

                October
                  2005

              
	
                 

                N11193

              	
                 

                14500938

              	
                 

                October
                  2005

              
	
                 

                N11194

              	
                 

                14500940

              	
                 

                November
                  2005

              
	
                 

                N12195

              	
                 

                14500943

              	
                 

                December
                  2005

              
	
                 

                N17196

              	
                 

                14500945

              	
                 

                December
                  2005

              
	
                 

                N21197

              	
                 

                14500947

              	
                 

                January
                  2006

              
	
                 

                N14198

              	
                 

                14500951

              	
                 

                February
                  2006

              
	
                 

                N11199

              	
                 

                14500953

              	
                 

                February
                  2006

              

      

      

      

      
        
          
            

          

          
          

        

        
          
          

          
            

          

        

        
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      SCHEDULE
        II to

      Note
        Purchase Agreement

       

      TRUST
        SUPPLEMENT

       

      Trust
        Supplement dated as of the Issuance Date between the Company and the Pass
        Through Trustee in respect of the Continental Airlines Class A Pass Through
        Trust, Series 2005-ERJ1.

      

      

      
        
          
            

          

          
          

        

        
          
          

          
            

          

        

        
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      SCHEDULE
        III to

      Note
        Purchase Agreement

       

      MANDATORY
        ECONOMIC TERMS

      •    
         The
        aggregate principal amount of the Equipment Notes issued with respect to
        an
        Aircraft shall not exceed the amounts set forth in the following
        table:

       

      
        	
                Aircraft

              	 	 
	
                Registration

              	
                Manufacturer’s

              	
                Principal
                  Amount

              
	
                Number

              	
                Serial
                  Number

              	
                of
                  Equipment Notes

              
	
                N14171

              	
                14500859

              	
                $10,037,481

              
	
                N12172

              	
                14500864

              	
                9,994,443

              
	
                N14173

              	
                14500872

              	
                10,164,449

              
	
                N14174

              	
                14500876

              	
                10,271,406

              
	
                N12175

              	
                14500878

              	
                10,225,962

              
	
                N11176

              	
                14500881

              	
                10,532,173

              
	
                N14177

              	
                14500888

              	
                10,485,908

              
	
                N16178

              	
                14500889

              	
                10,485,908

              
	
                N14179

              	
                14500896

              	
                10,775,405

              
	
                N14180

              	
                14500900

              	
                10,925,153

              
	
                N11181

              	
                14500904

              	
                10,880,450

              
	
                N33182

              	
                14500909

              	
                10,750,417

              
	
                N16183

              	
                14500914

              	
                10,725,962

              
	
                N11184

              	
                14500917

              	
                10,692,171

              
	
                N17185

              	
                14500922

              	
                10,795,225

              
	
                N14186

              	
                14500924

              	
                10,670,184

              
	
                N11187

              	
                14500927

              	
                10,771,685

              
	
                N14188

              	
                14500929

              	
                10,855,667

              
	
                N11189

              	
                14500931

              	
                11,060,953

              
	
                N27190

              	
                14500934

              	
                10,896,010

              
	
                N11191

              	
                14500935

              	
                10,953,234

              
	
                N11192

              	
                14500936

              	
                11,172,581

              
	
                N11193

              	
                14500938

              	
                11,172,581

              
	
                N11194

              	
                14500940

              	
                11,172,581

              
	
                N12195

              	
                14500943

              	
                11,172,581

              
	
                N17196

              	
                14500945

              	
                11,172,581

              
	
                N21197

              	
                14500947

              	
                11,172,581

              
	
                N14198

              	
                14500951

              	
                11,172,581

              
	
                N11199

              	
                14500953

              	
                11,172,581

              
	 	 	 

      

      •    
         The
        Loan
        to Aircraft Value for the Equipment Notes issued for each Aircraft computed
        on
        the date of issuance thereof (with value for such Aircraft for these purposes
        initially equal to its value set forth under “Description of the Aircraft and
        the Appraisals—The Appraisals” in the column “Appraised Value” in the Prospectus

      
         

        
          
          

          
            

          

        

        
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      Supplement
        and thereafter based on such value after giving effect to the Depreciation
        Assumption (as defined in the Prospectus Supplement)) as of the issuance
        date of
        such Equipment Notes and any Regular Distribution Date thereafter (assuming
        no
        default in the payment of the Equipment Notes and after giving effect to
        scheduled payments) will not exceed 55%. 

             

       

      
      

      •    
         The
        initial average life of the Equipment Notes for any Aircraft shall not extend
        beyond 10 years from the Issuance Date.

       

      •    
         As
        of the
        Delivery Period Termination Date, the average life of the Certificates shall
        not
        be more than 9.5 years from the Issuance Date (computed without regard to
        the acceleration of any Equipment Notes and after giving effect to any special
        distribution on the Certificates thereafter required in respect of unused
        Deposits). 

       

      •    
         The
        final
        expected distribution date of the Certificates shall be as set forth on the
        cover page of the Prospectus Supplement. 

       

      •    
         The
        original aggregate principal amount of all of the Equipment Notes shall not
        exceed the original aggregate face amount of the Certificates. 

       

      •    
         The
        interest rate applicable to the Equipment Notes must be equal to the rate
        applicable to the Certificates. 

       

      •    
         The
        payment dates for the Equipment Notes must be on the first day of each month,
        and basic rent under the Leases must be payable on such dates. 

       

      •    
         Basic
        rent, stipulated loss values and termination values under the Leases must
        be
        sufficient to pay amounts due with respect to the related Equipment Notes.
        

       

      •    
         The
        amounts payable under the all-risk aircraft hull insurance maintained with
        respect to each Aircraft must be sufficient to pay the applicable stipulated
        loss value, subject to certain rights of self-insurance. 

       

      •    
         (a)
        The
        past due rate in the Trust Indentures and the Leases, (b) the “Make-Whole
        Amount” payable under the Trust Indentures, (c) the provisions relating to the
        redemption and purchase of Equipment Notes in the Trust Indentures, (d) the
        minimum liability insurance amount on Aircraft in the Leases, and (e) the
        indemnification of the Loan Trustees, Subordination Agent, Liquidity Providers,
        Pass Through Trustee, Escrow Agent and registered holders of the Equipment
        Notes
        with respect to certain taxes and expenses, in each case shall be provided
        as
        set forth in the forms of Participation Agreements, Lease and Trust Indentures
        attached as exhibits to the Note Purchase Agreement. 

      
        
          
          

        

        
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      SCHEDULE
        IV TO

      Note
        Purchase Agreement

      

      MANDATORY
        DOCUMENT TERMS

       

      The
        terms
        "Form of Participation Agreement" "Form of Lease" and "Form of Trust Indenture"
        correspond to Exhibits A, B and C of the Note Purchase Agreement.

      

         

        
          	1.	
                  May
                    not modify in any material adverse respect the Granting Clause
                    of the Form
                    of Trust Indenture so as to deprive the Note Holders of a first
                    priority
                    security interest in and mortgage lien on the Aircraft and the
                    Lease or to
                    eliminate any of the obligations secured thereby or otherwise
                    modify in
                    any material adverse respect as regards the interests of the
                    Note Holders,
                    the Subordination Agent, the Liquidity Providers or the Mortgagee
                    the
                    provisions of Article II or III or Section 4.02, 4.03, 4.04,
                    5.02, 5.06,
                    9.01(b), 10.04, 10.11 or 10.12 of the Form of Trust
                    Indenture.

                

        

         

        
          	2.	
                  May
                    not modify in any material adverse respect as regards the interests
                    of the
                    Note Holders, the Subordination Agent, the Liquidity Providers
                    or the
                    Mortgagee the provisions of Section 3.2.1(b), 3.3(c), 4.7, the
                    final
                    sentence of 7.1.1, 10.3.1(d)(ii), 13.3, 16, 18.3 or 18.7(a) of
                    the Form of
                    Lease or otherwise modify the terms of the Form of Lease so as
                    to deprive
                    the Mortgagee of rights expressly granted to the "Mortgagee"
                    therein.

                

        

         

        
          	3.	
                  May
                    not modify in any material adverse respect as regards the interests
                    of the
                    Note Holders, the Subordination Agent, the Liquidity Providers
                    or the
                    Mortgagee the provisions of Section 5.1.9, 5.1.10, 5.1.11, 5.1.12,
                    7.5,
                    12, 15.8(a) or 15.9 of the Form of Participation Agreement or
                    of the
                    provisions of Section 5.1.2(xxv) or 10.1.1(a)(iv) of the Form
                    of
                    Participation Agreement so as to eliminate the requirement to
                    deliver to
                    the Loan Participant or the Mortgagee, as the case may be, the
                    legal
                    opinions to be provided to such Persons thereunder (recognizing
                    that the
                    lawyers rendering such opinions may be changed) or of the provisions
                    of
                    Section 7.6.11(a)(ii) of the Form of Participation Agreement
                    as regards
                    the rights of the Mortgagee thereunder or otherwise modify the
                    terms of
                    the Form of Participation Agreement to deprive the Note Holders,
                    the
                    Subordination Agent, the Liquidity Providers or the Mortgagee
                    of any
                    indemnity or right of reimbursement in its favor for Expenses
                    or
                    Taxes.

                

        

        

          
            
              
              

            

            
              
              

              
                

              

            

            
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          	4.	
                  May
                    not modify, in any material adverse respect as regards the interests
                    of
                    the Note Holders, the Subordination Agent, the Liquidity Providers
                    or the
                    Mortgagee, the definition of "Make Whole Amount" in Annex A to
                    the
                    Participation Agreement Form.

                

        

         

        
          	 	
                  Notwithstanding
                    the foregoing, any such Mandatory Document Term may be modified
                    to correct
                    or supplement any such provision which may be defective or to
                    cure any
                    ambiguity or correct any mistake, provided
                    that any such action shall not materially adversely affect the
                    interests
                    of the Note Holders, the Subordination Agent, the Liquidity Providers,
                    the
                    Mortgagee or the
                    Certificateholders.

                

        

        

      

       

      
        
          
            

          

          
          

        

        
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      ANNEX
        A to

      Note
        Purchase Agreement

       

      DEFINITIONS

      

       

      "Act"
        means
        part A of subtitle VII of title 49, United States Code.

       

      "Affiliate"
        means,
        with respect to any person, any other person directly or indirectly controlling,
        controlled by or under common control with such person. For purposes of this
        definition, "control" means the power, directly or indirectly, to direct
        or
        cause the direction of the management and policies of such person, whether
        through the ownership of voting securities or by contract or otherwise and
        "controlling," "controlled by" and "under common control with" have correlative
        meanings.

       

      "Aircraft"
        has the
        meaning set forth in the second recital to the Note Purchase
        Agreement.

       

      "Assumed
        Amortization Schedule"
        means
        the amortization schedule set forth on pages S-32 through S-36 of the Prospectus
        Supplement.

       

      "Average
        Life Date"
        means,
        for any Equipment Note, the date which follows the time of determination
        by a
        period equal to the Remaining Weighted Average Life of such Equipment
        Note.

       

      "Bankruptcy
        Code"
        means
        the United States Bankruptcy Code, 11 U.S.C. §§ 101 et
        seq.

       

      "Basic
        Pass Through Trust Agreement"
        means
        the Pass Through Trust Agreement, dated September 25, 1997, between the
        Company and Pass Through Trustee, as such agreement may be supplemented,
        amended
        or modified, but does not include the Trust Supplement.

       

      "Business
        Day"
        means
        any day, other than a Saturday, Sunday or other day on which commercial banks
        are authorized or required by law to close in New York, New York, Houston,
        Texas, Wilmington, Delaware or Salt Lake City, Utah.

       

      "Certificates"
        has the
        meaning set forth in the fourth recital to the Note Purchase
        Agreement.

      
        
          
          

        

        
          
          

          
            

          

        

        
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      "Certificateholder"
        means
        the Person in whose name a Certificate is registered in the
        Register.

       

      "Company"
        means
        Continental Airlines, Inc., a Delaware corporation.

       

      "Corporate
        Trust Office"
        with
        respect to the Pass Through Trustee or any Loan Trustee, means the office
        of
        such trustee in the city at which at any particular time its corporate trust
        business shall be principally administered.

       

      "Cut-off
        Date"
        means
        the earlier of (a) the day after the Delivery Period Termination Date and
        (b)
        the date on which a Triggering Event occurs.

       

      "Delivery
        Period Termination Date"
        means
        the earlier of (a) May 31, 2006, or, if the Equipment Notes
        relating to all of the Aircraft (or Substitute Aircraft in lieu thereof)
        have
        not been purchased by the Pass Through Trustee on or prior to such date due
        to
        any reason beyond the control of the Company and not occasioned by the Company’s
        fault or negligence, August 31, 2006 and (b) the date on which
        Equipment Notes issued with respect to all of the Aircraft (or Substitute
        Aircraft in lieu thereof) have been purchased by the Pass Through Trustee
        in
        accordance with the Note Purchase Agreement.

       

      "Delivery
        Date"
        means
        the Business Day on which a New Aircraft is delivered to and accepted by
        the
        Company.

       

      "Delivery
        Notice"
        means a
        Delivery Notice substantially in the form of Exhibit F to the Note Purchase
        Agreement.

       

      "Deposit"
        has the
        meaning set forth in the sixth recital to the Note Purchase
        Agreement.

       

      "Deposit
        Agreement"
        has the
        meaning set forth in the sixth recital to the Note Purchase
        Agreement.

       

      "Depositary"
        means
        Citibank, N.A.

       

      "Equipment
        Notes"
        means
        and includes any equipment notes issued under any Trust Indenture in the
        form
        specified in Section 2.01 thereof (as such form may be varied pursuant to
        the
        terms of such Trust Indenture) and any Equipment Note issued under any Trust
        Indenture in exchange for or replacement of any other Equipment
        Note.

      
        
          
          

        

        
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      "Escrow
        Agent"
        has the
        meaning set forth in the first paragraph of the Note Purchase
        Agreement.

       

      "Escrow
        Agent Agreements"
        has the
        meaning set forth in Section 3(e)(i) of the Note Purchase
        Agreement.

       

      "Escrow
        and Paying Agent Agreement"
        has the
        meaning set forth in the fifth recital to the Note Purchase
        Agreement.

       

      "Existing
        Aircraft"
        has the
        meaning set forth in the second recital to the Note Purchase
        Agreement.

       

      "Existing
        Leases"
        has the
        meaning set forth in the second recital to the Note Purchase
        Agreement.

       

      "FAA"
        means
        the Federal Aviation Administration of the United States.

       

      "Final
        Withdrawal"
        with
        respect to the Escrow and Paying Agent Agreement, has the meaning set forth
        in
        Section 1.02 thereof.

       

      "Financing
        Agreements"
        means,
        collectively, the Purchase Agreement Assignment, the Initial Purchase Agreement
        Assignment (if a New Aircraft), the Participation Agreement, the Lease, the
        Trust Indenture, the Equipment Notes issued thereunder, and the Trust Agreement
        relating to the financing of an Aircraft. 

       

      "Government
        Entity"
        means
        (a) any federal, state, provincial or similar government, and any body, board,
        department, commission, court, tribunal, authority, agency or other
        instrumentality of any such government or otherwise exercising any executive,
        legislative, judicial, administrative or regulatory functions of such government
        or (b) any other government entity having jurisdiction over any matter
        contemplated by the Operative Agreements or relating to the observance or
        performance of the obligations of any of the parties to the Operative
        Agreements.

       

      "Initial
        Deposits"
        has the
        meaning set forth in the sixth recital to the Note Purchase
        Agreement.

       

      "Initial
        Purchase Agreement Assignment"
        means a
        Purchase Agreement Assignment substantially in the form of Exhibit D-2 to
        the Note Purchase Agreement.

       

      "Intercreditor
        Agreement"
        has the
        meaning set forth in the ninth recital to the Note Purchase
        Agreement.

       

      "Issuance
        Date"
        means
        the date of the original issuance of the Certificates.

      
        
          
          

        

        
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      "Law"
        means
        (a) any constitution, treaty, statute, law, decree, regulation, order, rule
        or
        directive of any Government Entity, and (b) any judicial or administrative
        interpretation or application of, or decision under, any of the
        foregoing.

       

      "Lease"
        means a
        Lease Agreement substantially in the form of Exhibit B to the Note Purchase
        Agreement.

       

      "Liquidity
        Facility"
        has the
        meaning set forth in the ninth recital to the Note Purchase
        Agreement.

       

      "Liquidity
        Provider"
        has the
        meaning set forth in the ninth recital to the Note Purchase
        Agreement.

       

      "Loan
        Trustee"
        means
        the "Mortgagee" as defined in the Financing Agreements.

       

      "Mandatory
        Document Terms"
        means
        the terms set forth on Schedule IV to the Note Purchase Agreement.

       

      "Mandatory
        Economic Terms"
        means
        the terms set forth on Schedule III to the Note Purchase Agreement.

       

      "Manufacturer"
        means
        Embraer-Empresa Brasileira de Aeronáutica S.A., a Brazilian corporation, solely
        in its capacity as manufacturer or seller of the Aircraft.

       

      "New
        Aircraft"
        has the
        meaning set forth in the second recital to the Note Purchase
        Agreement.

       

      "Note
        Purchase Agreement"
        means
        the Note Purchase Agreement to which this Annex A is attached.

       

      "Notice
        of Purchase Withdrawal"
        with
        respect to the Deposit Agreement, has the meaning set forth in Section 2.3
        thereof.

       

      "Operative
        Agreements"
        means,
        collectively, the Pass Through Trust Agreement, the Escrow and Paying Agent
        Agreement, the Deposit Agreement, the Liquidity Facility, the Intercreditor
        Agreement, the Certificates and the Financing Agreements.

       

      "Owner
        Participant"
        means,
        with respect to any Aircraft, the Person named as the Owner Participant in
        the
        Participation Agreement with respect to such Aircraft.

       

      "Owner
        Trust"
        means,
        with respect to any Aircraft, the trust created by the Trust Agreement related
        thereto.

      
        
          
          

        

        
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      "Owner
        Trustee"
        means,
        with respect to any Aircraft, the "Owner Trustee" party to the Trust Agreement
        related thereto.

       

      "Participation
        Agreement"
        means a
        Participation Agreement substantially in the form of Exhibit A to the Note
        Purchase Agreement.

       

      "Pass
        Through Trust"
        has the
        meaning set forth in the fourth recital to the Note Purchase
        Agreement.

       

      "Pass
        Through Trust Agreement"
        means
        the Trust Supplement, together with the Basic Pass Through Trust Agreement,
        dated as of the Issuance Date, by and between the Company and Pass Through
        Trustee.

       

      "Pass
        Through Trustee"
        has the
        meaning set forth in the first paragraph of the Note Purchase
        Agreement.

       

      "Paying
        Agent"
        has the
        meaning set forth in the first paragraph of the Note Purchase
        Agreement.

       

      "Paying
        Agent Agreements"
        has the
        meaning set forth in Section 3(f)(i) of the Note Purchase
        Agreement.

       

      "Person"
        means
        any individual, firm, partnership, joint venture, trust, trustee, Government
        Entity, organization, association, corporation, limited liability company,
        government agency, committee, department, authority and other body, corporate
        or
        incorporate, whether having distinct legal status or not, or any member of
        any
        of the same.

       

      "Prospectus
        Supplement"
        means
        the final Prospectus Supplement, dated September 14, 2005, to the Prospectus,
        dated August 23, 2001, of the Company relating to the offering of the
        Certificates.

       

      "Purchase
        Agreement"
        means
        the Purchase Agreement GPJ-003/96 between Manufacturer and ExpressJet Airlines,
        Inc. (formerly Continental Express, Inc.) (including all exhibits thereto,
        together with all letter agreements entered into that by their terms constitute
        part of such Purchase Agreement), as amended.

       

      "Purchase
        Agreement Assignment"
        means a
        Purchase Agreement Assignment substantially in the form of Exhibit D-1 to
        the Note Purchase Agreement (for an Existing Aircraft) or Exhibit D-3 to
        the Note Purchase Agreement (for a New Aircraft).

      
        
          
          

        

        
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      "Rating
        Agencies"
        means,
        collectively, at any time, each nationally recognized rating agency which
        shall
        have been requested to rate the Certificates and which shall then be rating
        the
        Certificates. The initial Rating Agencies will be Moody's Investors Service,
        Inc. and Standard & Poor's Ratings Services, a division of The McGraw-Hill
        Companies, Inc.

       

      "Rating
        Agency Confirmation"
        means,
        with respect to (1) any Financing Agreement that has been modified in any
        material respect from the forms thereof attached to the Note Purchase Agreement
        or (2) a Substitute Aircraft, a written confirmation from each of the
        Rating Agencies that (a) the use of such Financing Agreement with such
        modifications or (b) the substituting of such Substitute Aircraft for a New
        Aircraft, respectively, would not result in (i) a reduction of the rating
        for
        the Certificates below the then current rating for the Certificates or (ii)
        a
        withdrawal or suspension of the rating of the Certificates.

       

      "Register"
        means
        the register maintained pursuant to Sections 3.04 and 7.12 of the Basic Pass
        Through Trust Agreement with respect to the Pass Through Trust.

       

      "Regular
        Distribution Date"
        shall
        mean the first day of each month, commencing October 1, 2005.

       

      "Remaining
        Weighted Average Life"
        means,
        on a given date with respect to any Equipment Note, the number of days equal
        to
        the quotient obtained by dividing (a) the sum of each of the products obtained
        by multiplying (i) the amount of each then remaining scheduled payment of
        principal of such Equipment Note by (ii) the number of days from and including
        such determination date to but excluding the date on which such payment of
        principal is scheduled to be made, by (b) the then outstanding principal
        amount
        of such Equipment Note.

       

      "Scheduled
        Closing Date"
        has the
        meaning set forth in Section 1(b) of the Note Purchase
        Agreement.

       

      "Section
        1110"
        means
        11 U.S.C. § 1110 of the Bankruptcy Code or any successor or analogous Section of
        the federal bankruptcy Law in effect from time to time.

       

      "Subordination
        Agent"
        has the
        meaning set forth in the first paragraph of the Note Purchase
        Agreement.

       

      "Substitute
        Aircraft"
        has the
        meaning set forth in Section 1(g) of the Note Purchase
        Agreement.

      
        
          
          

        

        
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      "Taxes"
        means
        all license, recording, documentary, registration and other similar fees
        and all
        taxes, levies, imposts, duties, charges, assessments or withholdings of any
        nature whatsoever imposed by any Taxing Authority, together with any penalties,
        additions to tax, fines or interest thereon or additions thereto.

       

      "Taxing
        Authority"
        means
        any federal, state or local government or other taxing authority in the United
        States, any foreign government or any political subdivision or taxing authority
        thereof, any international taxing authority or any territory or possession
        of
        the United States or any taxing authority thereof.

       

      "Treasury
        Yield"
        means,
        as of any date of determination, with respect to any Equipment Note (utilizing
        the Assumed Amortization Schedule applicable thereto), the interest rate
        (expressed as a decimal and, in the case of United States Treasury bills,
        converted to a bond equivalent yield) determined to be the per annum rate
        equal
        to the monthly yield to maturity for United States Treasury securities maturing
        on the Average Life Date of such Equipment Note and trading in the public
        securities markets either as determined by interpolation between the most
        recent
        weekly average yield to maturity for two series of United States Treasury
        securities, trading in the public securities markets, (A) one maturing as
        close
        as possible to, but earlier than, the Average Life Date of such Equipment
        Note
        and (B) the other maturing as close as possible to, but later than, the Average
        Life Date of such Equipment Note, in each case as published in the most recent
        H.15(519) or, if a weekly average yield to maturity for United States Treasury
        securities maturing on the Average Life Date of such Equipment Note is reported
        on the most recent H.15(519), such weekly average yield to maturity as published
        in such H.15(519). The "most recent H.15(519)" means the H.15(519) most recently
        published prior to the close of business on the date of determination of
        the
        Deposit Make-Whole Premium.

       

      "Triggering
        Event"
        has the
        meaning assigned to such term in the Intercreditor Agreement.

       

      "Trust
        Agreement"
        means a
        Trust Agreement substantially in the form of Exhibit E to the Note Purchase
        Agreement.

       

      "Trust
        Indenture"
        means a
        Trust Indenture and Mortgage substantially in the form of Exhibit C to the
        Note
        Purchase Agreement.

      
        
          
          

        

        
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      "Trust
        Supplement"
        means
        an agreement supplemental to the Basic Pass Through Trust Agreement pursuant
        to
        which (i) a trust is created for the benefit of the holders of the
        Certificates, (ii) the issuance of the Certificates representing fractional
        undivided interests in such trust is authorized and (iii) the terms of the
        Certificates are established.

       

      "Underwriter"
        has the
        meaning set forth in the fifth recital to the Note Purchase
        Agreement.

       

      "Underwriting
        Agreement"
        has the
        meaning set forth in the fifth recital to the Note Purchase
        Agreement.

       

      "WTC"
        has the
        meaning set forth in the first paragraph of the Note Purchase
        Agreement.

      

      

      

      
        
          
            

          

          
          

        

        
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      EXHIBIT
        A to

      Note
        Purchase Agreement

       

      FORM
        OF
        PARTICIPATION AGREEMENT

      

      

      (Filed
        Separately)

      

      
        
          
            

          

          
          

        

        
          
          

          
            

          

        

        
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      EXHIBIT
        B to

      Note
        Purchase Agreement

       

      FORM
        OF
        LEASE

      

      

      (Filed
        Separately)

      

      
        
          
            

          

          
          

        

        
          
          

          
            

          

        

        
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      EXHIBIT
        C to

      Note
        Purchase Agreement

       

      FORM
        OF
        TRUST INDENTURE

      

      

      (Filed
        Separately)

      

      

      
        
          
            

          

          
          

        

        
          
          

          
            

          

        

        
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      EXHIBIT
        D-1 to

      Note
        Purchase Agreement

       

      FORM
        OF
        PURCHASE AGREEMENT ASSIGNMENT

      (EXISTING
        AIRCRAFT)

      

      AMENDED
        AND RESTATED

      PURCHASE
        AGREEMENT ASSIGNMENT NO. 2 - _____

       

      AMENDED
        AND RESTATED PURCHASE AGREEMENT ASSIGNMENT NO. 2 - _____, dated as of September
        22, 2005(this “Restated Assignment”), between PM Limited, a Cayman Islands
        company (the “Assignor” or “PM Limited”), WELLS FARGO BANK NORTHWEST, NATIONAL
        ASSOCIATION, not in its individual capacity but solely as Owner Trustee (the
        “Assignee”), and EXPRESSJET AIRLINES, INC., a Delaware corporation (“Express”),
        which amends and restates in its entirety the Original PAA No. 2 (as hereinafter
        defined).

      

      Recitals

      WHEREAS,
        Express and EMBRAER-Empresa Brasileira de Aeronautica S.A., a corporation
        organized under the laws of Brazil (“Embraer”), have entered into the Purchase
        Agreement, pursuant to which, among other things, Embraer has agreed to
        manufacture and sell to Express, and Express has agreed to purchase from
        Embraer, certain aircraft, including the Aircraft (as defined in the Purchase
        Agreement Assignment No. 1 described below);

      

      WHEREAS,
        pursuant to a Purchase Agreement Assignment No. 1 - _____, dated as of
        _______________ (“PAA No. 1”), between Express and PM Limited, Express has,
        among other things, heretofore assigned to PM Limited, with the consent of
        the
        Manufacturer, certain of its right, title and interest in, to and under the
        Purchase Agreement including, without limitation, the right to purchase the
        Aircraft from Embraer upon and subject to the terms and conditions set forth
        in
        the Purchase Agreement and PAA No. 1; 

      

      WHEREAS,
        PM Limited has heretofore purchased the Aircraft from Embraer and, concurrently
        therewith, has heretofore sold the Aircraft to Wells Fargo Bank Northwest,
        National Association, acting not in its individual capacity but solely as
        Owner
        Trustee under the Trust Agreement _____, dated as of _______________(the
        “Original Trust Agreement”), between Refine, Inc., as Owner Participant (the
“Owner Participant”), and Wells Fargo Bank Northwest, National Association
        (“Wells Fargo”), as amended and restated in its entirety by that certain Amended
        and Restated Trust Agreement _____, dated as of the date hereof, between
        the
        Owner Participant and Wells Fargo (the Original Trust Agreement, as so amended
        and restated, the “Amended and Restated Trust Agreement”); 

      

      WHEREAS,
        in connection with the sale of the Aircraft by PM Limited to the Owner Trustee
        and with the consent of the Manufacturer, PM Limited has, pursuant to the
        Purchase Agreement Assignment No. 2-_____, dated as of _________________(the
        “PAA No. 2”), between PM Limited and the Owner Trustee, heretofore transferred
        to the Owner Trustee all of PM Limited’s present and future rights, title,
        obligations and interests in, to and under the Purchase Agreement as assigned
        by
        PAA No. 1, except for 

      
        
          
          

        

        
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      PM
        Limited’s right to purchase the Aircraft from the Manufacturer pursuant to
        Section 2(a) of PAA No. 1; 

      

      WHEREAS,
        the Owner Trustee desires to (i) issue Equipment Notes (as defined in Annex
        A to
        the Lease Agreement referred to herein) for the purpose of enabling the Owner
        Participant to repay, in part, the indebtedness relating to the acquisition
        of
        the Aircraft by the Owner Trustee, (ii) terminate the Lease Agreement _____,
        dated as of the date of PAA No. 1 (the “Existing Lease”), between the Owner
        Trustee and Continental Airlines, Inc. (“Continental”), in connection therewith
        and (iii) re-lease the Aircraft to Continental pursuant to the Lease Agreement
        (as hereinafter defined); and

      

      WHEREAS,
        to facilitate the transactions described in the immediately preceding Whereas
        clause, PM Limited and the Assignee desire to amend and restate in its entirety
        PAA No. 2 on the terms and conditions hereof, Express desires to agree to
        the
        terms and provisions hereof and to certain changes to PAA No. 1, as provided
        herein, and the Manufacturer is willing to execute and deliver to the Assignee
        a
        Consent and Agreement to the provisions hereof in substantially the form
        attached hereto as Annex 1;

      

      NOW,
        THEREFORE, in consideration of the foregoing premises and the mutual covenants
        and agreements of the parties contained herein, and for other good and valuable
        consideration, the receipt and adequacy of which is hereby acknowledged,
        the
        Assignor and the Assignee hereby agree to amend and restate PAA No. 2 in
        its
        entirety upon the terms set forth herein, and the parties hereto further
        agree
        as follows:

      

      Section
        1. Definitions.
        Capitalized terms used but not defined herein shall have the respective meanings
        set forth or incorporated by reference, and shall be construed and interpreted
        in the manner described, in PAA No. 1.

      

      Section
        2. Transfer
        and Assumption.
        The
        Assignor does hereby sell, assign and transfer to the Assignee all of the
        Assignor’s present and future rights, title, obligations and interest in, to and
        under the Purchase Agreement as assigned by PAA No. 1, excluding the right
        to
        purchase the Aircraft from the Manufacturer (the “Assignor’s Interest”) and the
        Assignee hereby accepts the Assignor’s Interest from the Assignor. The Assignee
        agrees that it shall be bound by all the terms of, and shall assume and
        undertake to perform all the obligations of, the Assignor with respect to
        the
        Assignor’s Interest. For all purposes of PAA No. 1 and this Restated Assignment,
        Express, the Assignor and the Assignee hereby agree that:

      

      (i) the
        “Lease” or “Lease Agreement” referred to in PAA No. 1 shall be deemed to refer
        to the Lease Agreement _____, dated as of the date hereof (as the same may
        be
        amended, modified or supplemented, the “Lease Agreement”), between the Owner
        Trustee and Continental, providing for the lease of the Aircraft;

       

      
        
          
            
            

          

          
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      (ii) the
        Participation Agreement referred to in Paragraph 4 of PAA No. 1 shall be
        deemed
        to refer to the Participation Agreement defined in Annex A to the Existing
        Lease; 

      

      (iii) Continental,
        in lieu of Express, shall have the rights referred to in clause (iii)(B)
        of the
        first paragraph of Section 2 of PAA No. 1 after notice by Continental to
        the
        Manufacturer that Continental is entitled to possession of the Aircraft;
        

      

      (iv) Continental,
        in lieu of Express, shall be entitled to exercise the rights of Express under
        the second paragraph of Section 2 of PAA No. 1 after notice by Continental
        to
        the Manufacturer that Continental is entitled to possession of the Aircraft;
        and

      

      (v) the
        Manufacturer shall not be deemed to have knowledge of, and need not recognize
        nor take any action with respect to, the termination of Express’s rights under
        PAA No. 1 by Continental to the extent permitted hereunder or thereunder
        unless
        and until the Manufacturer shall have received from Continental, as required
        by
        the terms of this Restated Assignment, written notice (including notice by
        fax)
        thereof and, in acting in accordance with the terms and conditions of the
        Purchase Agreement and this Restated Assignment and PAA No. 1, the Manufacturer
        may act in accordance with and conclusively rely upon any such
        notice.

      

      Section
        3. Confidential
        Treatment.
        The
        Assignee and the Assignor agree that the provisions of Paragraph 8 of PAA
        No. 1
        are hereby terminated and superseded by the provisions of this Section 3
        and, in
        furtherance thereof, agree that they will not disclose to any third party
        (other
        than their direct and indirect parent companies) the terms of the Purchase
        Agreement (whether or not related to the Aircraft) or PAA No. 1 or this Restated
        Assignment, except (a) as required by applicable law, judicial proceeding
        or
        governmental regulation, (b) in the case of the Assignee, as required for
        the
        assignment of its rights under this Restated Assignment in accordance with
        the
        provisions of Article 16 of the Purchase Agreement, (c) with the prior written
        consent of Express, the Assignor and the Manufacturer, which consent shall
        not
        be unreasonably withheld with respect to a prospective bona fide purchaser
        of
        the Aircraft, (d) to prospective and permitted transferees of Owner
        Participant’s interest or their or Owner Participant’s respective counsel or
        special counsel, independent insurance brokers, auditors, or other agents,
        (e)
        as otherwise permitted by the Operative Agreements (as defined in Annex A
        to the
        Lease), or (f) to such other Persons as are reasonably deemed necessary by
        the
        disclosing party for the purposes of enforcing such documents by such party;
        provided
        that any
        such disclosure under this sentence shall be made only to the extent necessary
        to meet the specific requirements or needs of the Assignee or PM Limited,
        as the
        case may be. Any disclosure as contemplated in (b), (c) or (d) above shall
        include a requirement that the entity to which the information is disclosed
        shall be subject to obligations of nondisclosure with respect to such
        information substantially the same as those contained herein.

      

        
          
            
            

          

          
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      Section
        4. Assignment
        to Mortgagee.
        The
        right, title and interest of the Assignee in and to this Restated Assignment
        has, contemporaneously with the execution and delivery hereof, been assigned
        to
        and is subject to a security interest in favor of the Mortgagee (as such
        terms
        and the other capitalized terms used hereinafter in this sentence are defined
        in
        Appendix A to the Lease) under the Trust Indenture, for the benefit of the
        Loan
        Participants and the Note Holders referred to the Trust Indenture, all to
        the
        extent provided in such Trust Indenture. The Assignor hereby consents to
        such
        assignment and to the creation of such security interest in and to this Restated
        Assignment.

       

      Section
        5. Notices.
        Any
        notices provided for in PAA No. 1 shall be delivered to the Assignee at the
        following address or such other place as the Assignee may designate in
        accordance with PAA No. 1:

      

      Wells
        Fargo Bank Northwest, 

      National
        Association

      MAC:
        U1228-120

      Attn:
        Corporate Trust Dept.

      299
        S.
        Main Street, 12th Floor

      Salt
        Lake
        City, UT 84111

      Facsimile:
        801-246-5053

      

      Section
        6. Headings.
        The
        headings of the Sections herein are for convenience of reference only and
        shall
        not define or limit any of the terms or provisions hereof.

      

      Section
        7. GOVERNING
        LAW.
        THIS
        RESTATED ASSIGNMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
        THE
        LAW OF THE STATE OF NEW YORK, UNITED STATES OF AMERICA, WITHOUT REGARD TO
        CONFLICT OF LAWS RULES OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL
        OBLIGATIONS LAW.

      

      Section
        8. Counterparts.
        This
        Agreement and any amendments, waivers, consents or supplements hereto may
        be
        executed in any number of counterparts (or upon separate signature pages
        bound
        together into one or more counterparts), each of which when so executed shall
        be
        deemed to be an original, and all of which counterparts, taken together,
        shall
        constitute one and the same instrument.

      

      Section
        9. Purchase
        Agreement.
        The
        rights and obligations of the parties hereto are subject to the terms and
        conditions of the Purchase Agreement.

      

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      IN
        WITNESS WHEREOF, the parties hereto have caused this Restated Assignment
        to be
        duly executed as of the day and year first written above.

      

      

      PM
        LIMITED, as Assignor

      

      

      By:______________________
        

      Name: 

      Title:
         

      

             

      WELLS
        FARGO BANK 

      NORTHWEST,
        NATIONAL

       ASSOCIATION,
        not in its

       individual
        capacity but solely as  

      Owner
        Trustee, as Assignee

      

      

      By:
        ________________________

      Name: 

      Title:
         

      

      

      EXPRESSJET
        AIRLINES, INC.

      

      

      By:
        ________________________

      Name: 

      Title:
         

      

        
          
            
              

            

            
            

          

          
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Annex
        1
        to Amended 

      and
        Restated Purchase 

      Agreement
        Assignment No. 2 - _____

      

      CONSENT
        AND AGREEMENT No. 2 - _____

      

      The
        undersigned, EMBRAER-EMPRESA BRASILEIRA DE AERONAUTICA S.A., a corporation
        organized and existing under the laws of Brazil, hereby acknowledges notice
        of
        and consents to all of the terms of the foregoing Amended and Restated Purchase
        Agreement Assignment No. 2 - _____, dated as of September 22, 2005, by and
        among
        PM Limited, WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION, not in its
        individual capacity but solely as Owner Trustee, and EXPRESSJET AIRLINES,
        INC.,
        to the extent they relate to the Manufacturer (herein called the “Assignment No.
        2”, the defined terms therein being hereinafter used with the same meaning)
        and
        hereby confirms to the Assignee that: (i) all representations, warranties,
        indemnities and agreements of the Manufacturer under the Purchase Agreement
        with
        respect to the Aircraft shall inure to the benefit of the Assignee to the
        same
        extent as if originally named the “Buyer” therein, subject to the terms and
        conditions of the Assignment No. 2, the Purchase Agreement and PAA No. 1;
        (ii)
        the Assignee shall not be liable for any of the obligations or duties of
        Express
        under the Purchase Agreement, nor shall the Assignment No. 2 give rise to
        any
        duties or obligations whatsoever on the part of the Assignee owing to the
        Manufacturer except for the Assignee’s agreement to the effect that in
        exercising any rights under the Purchase Agreement, or in making any claim
        with
        respect to the Aircraft or other things (including without limitation data,
        documents and services) delivered or to be delivered pursuant to the Purchase
        Agreement, the terms and conditions of the Purchase Agreement shall apply
        to and
        be binding upon the Assignee to the same extent as if the Assignee had been
        the
        original “Buyer” thereunder, and with respect to such agreement the Manufacturer
        agrees that, anything contained in the Purchase Agreement or the Assignment
        No.
        2 to the contrary notwithstanding, so long as the Manufacturer shall not
        have
        received notice that a Lease Event of Default has occurred and is continuing,
        the Assignee shall not have any responsibility to the Manufacturer for failure
        to comply with any of the terms of the Purchase Agreement with respect to
        the
        Aircraft while under lease to Continental so long as the Assignee acts upon
        the
        written instructions of Express (or, if Continental shall have specified
        in a
        written notice to the Assignee and the Manufacturer that Continental is entitled
        to possession of the Aircraft, Continental) (to which instructions the
        Manufacturer understands it shall have access on request); provided
        that no
        person other than the Manufacturer shall have any rights against the Assignee
        with respect to the undertaking and agreement set forth in this clause (ii);
        (iii) the Manufacturer will continue to pay to Express (or, if Continental
        shall
        have specified in a written notice to the Assignee and the Manufacturer that
        Continental is entitled to possession of the Aircraft, Continental) all payments
        which the Manufacturer may be required to make in respect of the Aircraft
        under
        the Purchase Agreement unless and until the Manufacturer shall have received
        written notice addressed to its Contracts Administrator, by mail to
        EMBRAER-Empresa Brasileira de Aeronautica S.A., Av. Brigadeiro Faria Lima,
        2170,
        12.227-901 Sao Jose dos Campos-SP, Brazil, or by fax to fax no: 55 12-3927-1257,
        that a 

      
        
          
          

        

        
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      Lease
        Event of Default has occurred and is continuing (which such notice from the
        Assignee shall be conclusive proof thereof to the Manufacturer and as to
        which
        the Manufacturer shall have no obligation to inquire), whereupon the
        Manufacturer will, until the Manufacturer shall have received notice in writing
        sent or addressed as aforesaid that no Lease Event of Default exists, make
        any
        and all payments and take any and all actions which it may be required
        thereafter to make or take in respect of the Aircraft under the Purchase
        Agreement and the right to receive which has been assigned under the Assignment
        No. 2 directly to the Assignee at its address at MAC: U1228-120, 299 S. Main
        Street, 12th Floor, Salt Lake City, Utah 84111 , telecopy no. 801-246-5053;
        (iv)
        from and after the delivery of the Aircraft on the Delivery Date, the
        Manufacturer will not assert any lien or claim against the Aircraft or any
        part
        thereof arising with respect to or in connection with any work or other services
        performed before the delivery and acceptance of the Aircraft; and (v) the
        Manufacturer consents to the grant of a security interest in the Purchase
        Agreement pursuant to the Trust Indenture (as defined in Appendix A to the
        Lease).

      

      The
        Manufacturer hereby represents and warrants that (A) the Manufacturer is
        a
        corporation duly organized and existing in good standing under the laws of
        Brazil, (B) the making and performance of the Purchase Agreement have been
        duly
        authorized by all necessary corporate action on the part of the Manufacturer,
        do
        not require any stockholder approval, do not contravene the Manufacturer’s
        By-Laws or any indenture, credit agreement or other contractual agreement
        to
        which the Manufacturer is a party or by which it is bound, and the making
        of the
        Purchase Agreement does not contravene any law binding on the Manufacturer,
        (C)
        the making and performance of this Consent and Agreement have been duly
        authorized by all necessary corporate action on the part of the Manufacturer,
        do
        not require any stockholder approval and do not contravene any law binding
        on
        the Manufacturer or contravene the Manufacturer’s By-laws or any indenture,
        credit agreement or other contractual agreement to which the Manufacturer
        is a
        party or by which it is bound, (D) the Purchase Agreement constituted as
        of the
        date thereof and at all times thereafter to and including the date of this
        Consent and Agreement constitutes a binding obligation of the Manufacturer
        enforceable against the Manufacturer in accordance with its terms subject
        to:
        (i) the limitations of applicable bankruptcy, insolvency, reorganization,
        moratorium or similar laws affecting the rights of creditors generally) and
        (ii)
        general principles of equity (regardless of whether such enforceability is
        considered in a proceeding in equity or at law), and (E) this Consent and
        Agreement is a binding obligation of the Manufacturer enforceable against
        the
        Manufacturer in accordance with its terms subject to: (a) the limitations
        of
        applicable bankruptcy, insolvency, reorganization, moratorium or similar
        laws
        affecting the rights of creditors generally; and (b) general principles of
        equity (regardless of whether such enforceability is considered in a proceeding
        in equity or at law). It is understood that the execution by the Manufacturer
        of
        this Consent and Agreement is subject to the condition that concurrently
        with
        execution and delivery hereof the Aircraft will be leased to Continental
        under
        the Lease Agreement.

      

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        remainder of this page has been left blank intentionally.]

        
          
            
              

            

            
            

          

          
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      This
        Consent and Agreement shall be governed by the laws of the State of New York,
        including all matters of construction, validity and performance, as applicable
        to contracts between citizens of the state to be performed wholly within
        that
        state, and without regard to conflicts of law rules other than Section 5-1401
        of
        the New York General Obligations Law.

      

      Dated
        as
        of September 22, 2005.

      

      EMBRAER-EMPRESA
        BRASILEIRA

      DE
        AERONAUTICA S.A.

      

      By____________________________

      Title:

       

      

      By____________________________ 

      Title:

      

      

        
          
            
            

          

          
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EXHIBIT
        D-2 to

      Note
        Purchase Agreement

       

      FORM
        OF
        INITIAL PURCHASE AGREEMENT ASSIGNMENT

      (NEW
        AIRCRAFT)

      

      PURCHASE
        AGREEMENT ASSIGNMENT NO. 1 - ___

       

      This
        PURCHASE AGREEMENT ASSIGNMENT NO. 1- ___ (the “Assignment”), dated as of
        _____________________, 200__, is between EXPRESSJET AIRLINES, INC., a Delaware
        corporation (the “Assignor”), and PM Limited, a Cayman Islands company (the
“Assignee”).

       

      WHEREAS,
        the Assignor and the Manufacturer (as hereinafter defined) are parties to
        the
        Purchase Agreement (as hereinafter defined) providing, among other things,
        for
        the manufacture and sale by the Manufacturer to the Assignor of certain
        aircraft, engines and related equipment, including the Aircraft (as hereinafter
        defined), and the Aircraft is covered by the Lease Agreement (as hereinafter
        defined).

       

      WHEREAS,
        the Assignee wishes to acquire the Aircraft from the Manufacturer, and the
        Assignor, on the terms and conditions hereinafter set forth, is willing to
        assign to the Assignee certain of the Assignor’s rights and interests under the
        Purchase Agreement, and the Assignee is willing to accept such assignment,
        as
        hereinafter set forth.

       

      WHEREAS,
        the Manufacturer is willing to execute and deliver to Assignee a Consent
        and
        Agreement to the provisions hereof in substantially the form attached hereto
        as
        Annex 1.

       

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

       

      1. For
        all
        purposes of this Assignment, except as otherwise expressly provided or unless
        the context otherwise requires, the following terms shall have the following
        meanings:

       

      Aircraft. The
        Embraer Model EMB-145 XR aircraft to be delivered under the Purchase Agreement
        bearing Manufacturer’s Serial No. ____________ and U.S. Registration Mark
        N_______ (as hereinafter defined), with two Allison AE3007A1E engines installed
        on such aircraft on the date of delivery therefor, together with the equipment,
        components and accessories installed thereon pursuant to the Purchase
        Agreement.

       

      Lease
        or Lease Agreement. The
        Lease
        Agreement dated as of the date hereof as the same may be amended, modified
        or
        supplemented, between Wells Fargo Bank Northwest, National Association, not
        in
        its individual capacity but solely as Owner Trustee, as lessor, and Continental
        Airlines, Inc. (“CAL”), as lessee, providing for the lease of the
        Aircraft.

       

      Manufacturer. EMBRAER-Empresa
        Brasileira de Aeronautica S.A., a corporation organized and existing under
        the
        laws of Brazil, and its successors and assigns.

       

      Purchase
        Agreement. Purchase
        Agreement No. GPJ-003/96, dated August 5, 1996 as the same may be amended,
        supplemented or otherwise modified from time to time in accordance with its
        terms, between the Manufacturer and the Assignor (formerly known as 

        
          
            
            

          

          
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      Continental
        Express, Inc.) solely with respect to Articles 1, 2(a), 3(a), 4(a), 5(a),
        6,
        7(a) and (c), 12(a), 15, 17, 19, 20, 21, 24, 25, 26, 27, 28, 29 and 30 thereof,
        and Attachment C thereto providing, among other things, for the manufacture
        and
        sale by the Manufacturer to the Assignor (or its designee) of the airframe,
        Allison AE3007A1E engines and parts installed thereon.

       

      All
        terms
        used herein in capitalized form which are defined in the Lease and not otherwise
        defined herein shall, when used herein, have the meanings specified in Annex
        A
        to the Lease.

       

      2.  Subject
        to the terms and conditions of this Assignment, Assignor does hereby sell,
        assign, transfer and set over unto the Assignee all the Assignor’s rights and
        interest in and to the Purchase Agreement as and to the extent that the same
        relate to the Aircraft and the purchase and operation thereof, except to
        the
        extent reserved below, including, without limitation, (a) the right upon
        valid
        tender by the Manufacturer to purchase the Aircraft pursuant to the Purchase
        Agreement (including the right to accept delivery of such Aircraft, such
        right
        of acceptance to be exercised by a representative of the Assignor authorized
        by
        the Assignee and designated by the Assignor pursuant to Section 2.2(b) of
        the
        Lease), and the right to take title to the Aircraft and to be named the buyer
        in
        the bill of sale to be delivered by the Manufacturer for the Aircraft pursuant
        to Article 7(c) of the Purchase Agreement, (b) all claims for damages in
        respect
        of the Aircraft arising as a result of any default by the Manufacturer under
        the
        Purchase Agreement or any supplier of parts or equipment installed on or
        in the
        Aircraft, including, without limitation, all warranty and indemnity provisions
        contained in the Purchase Agreement, and all claims arising thereunder, in
        respect of the Aircraft, and (c) any and all rights of the Assignor to compel
        performance of the terms of the Purchase Agreement in respect of the Aircraft;
        reserving to the Assignor however, (i) all the Assignor’s rights and interests
        in and to the Purchase Agreement to the extent the same relates to aircraft
        other than the Aircraft and the purchase and operation of such aircraft and
        to
        the extent it pertains to any other matters not directly pertaining to the
        Aircraft, and (ii) all the Assignor’s rights and obligations with respect to any
        post-delivery adjustment of the purchase price of the Aircraft (and any other
        payments made or to be made by the Assignor in respect of such Aircraft under
        the Purchase Agreement or amounts credited or to be credited by the Manufacturer
        to the Assignor, provided that Assignor shall obtain no additional rights
        in or
        to the Aircraft or any part thereof by reason of making any such payment),
        and
        (iii) with respect to the Aircraft so long as the Aircraft is subject to
        the
        Lease (A) the rights to demand, accept and retain all rights in and to all
        property (other than the Aircraft), data and service related to the Aircraft
        which the Manufacturer is obligated to provide or does provide pursuant to
        the
        Purchase Agreement, and (B) the right to obtain services, training, data
        and
        demonstration and test flights related to the Aircraft pursuant to the Purchase
        Agreement (provided that after reasonable prior notice by CAL to Manufacturer,
        CAL shall be entitled to the rights referred to in this clause (iii) in lieu
        of
        the Assignor), and (iv) the right to maintain plant representatives at the
        Manufacturer’s plant pursuant to the Purchase Agreement. The Assignee hereby
        accepts such assignment subject to the terms hereof.

       

      Notwithstanding
        the foregoing, so long as no Lease Event of Default as defined in Section
        14 of
        the Lease has occurred and is continuing, the Assignee shall and it does
        hereby
        authorize the Assignor during the term of the Lease, as sublessee under the
        Express Sublease, to the exclusion of the Assignee, to exercise in Assignor’s
        own name all rights and powers of the “Buyer” under the Purchase Agreement
        including the right to retain any recovery or benefit resulting from the
        enforcement of any warranty or indemnity under the Purchase Agreement in
        respect
        of the Aircraft except that the Assignor may not enter into any amendment,
        modification or supplement to the Purchase Agreement without the written
        consent
        or countersignature of the Assignee if such amendment, modification or
        supplement would result in any rescission, 

       

      
        
          
          

        

        
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      cancellation
        or termination of the Purchase Agreement with respect to the Aircraft, except
        as
        permitted by Article 9 or 22 of the Purchase Agreement provided that after
        reasonable prior notice by CAL to Manufacturer, CAL shall be entitled to
        exercise the rights of the Assignor referred to in this paragraph.

       

      Until
        such time as written notice of a Lease Event of Default or termination of
        the
        Lease shall have been given by the Lessor to the Manufacturer, to its Director
        of Contracts, by mail to EMBRAER-Empresa Brasileira de Aeronautica S.A.,
        Av.
        Brigadeiro Faria Lima, 2170, 12.227-901 Sao Jose dos Campos-SP, Brazil, or
        by
        fax to fax no.: 55 12-3927-1257, the Manufacturer shall deal solely and
        exclusively with the Assignor. After such notice has been given to the
        Manufacturer, and until the Lessor shall have notified the Manufacturer that
        a
        Lease Event of Default is no longer continuing, the Manufacturer shall deal
        solely and exclusively with the Lessor. Assignee shall cause Lessor to promptly
        after all Lease Events of Default have been remedied to the satisfaction
        of
        Lessor, give written notice that such remedy has occurred to the Manufacturer
        with a copy to the Assignor, and upon the Manufacturer’s receipt of such notice,
        the Assignor and the Manufacturer shall have all of the respective rights
        which
        they have hereunder and under the Consent and Agreement annexed hereto in
        the
        absence of notice from the Lessor of a Lease Event of Default.

       

      For
        all
        purposes of this Assignment, the Manufacturer shall not be deemed to have
        knowledge of, and need not recognize nor take any action with respect to,
        the
        occurrence of a Lease Event of Default, or the discontinuance of a Lease
        Event
        of Default, or the Aircraft’s becoming no longer subject to the Lease, or the
        termination of the Assignor’s rights hereunder by CAL to the extent permitted
        herewith, unless and until the Manufacturer shall have received from the
        Lessor
        or CAL, as required by the terms of this Assignment, written notice (including
        notice by fax) thereof and, in acting in accordance with the terms and
        conditions of the Purchase Agreement and this Assignment, the Manufacturer
        may
        act in accordance with and conclusively rely upon any such notice.

       

      3.  It
        is
        expressly agreed that, anything herein contained to the contrary
        notwithstanding: (a) the Assignor shall at all times remain liable to the
        Manufacturer under the Purchase Agreement to perform all duties and obligations
        of the “Buyer” thereunder to the same extent as if this Assignment had not been
        executed; (b) the exercise by the Assignee of any of the rights assigned
        hereunder shall not release the Assignor from any of its duties or obligations
        to the Manufacturer under the Purchase Agreement except to the extent that
        such
        exercise by the Assignee shall constitute performance of such duties and
        obligations; (c) subject to the provisions of the penultimate paragraph of
        this
        Section 3, the Assignee shall not have any obligation or liability under
        the
        Purchase Agreement (including in particular, but without limitation, any
        liability for the payment of any taxes and customs duties under the Purchase
        Agreement, the obligation for payment of which shall remain with the Assignor
        as
        provided in clause (d) below) by reason of, or arising out of, this Assignment
        or be obligated to perform any of the obligations or duties of the Assignor
        under the Purchase Agreement or to make any payment (other than to pay the
        purchase price for the Aircraft as invoiced on the delivery date for such
        Aircraft to the extent and upon the terms and conditions set forth in the
        Purchase Agreement and the Lease Agreement) or to make any inquiry as to
        the
        sufficiency of any payment received by it or to present or file any claim
        or to
        take any other action to collect or enforce any claim for any payment assigned
        hereunder; (d) after the delivery date for the Aircraft 

       

      
        
          
          

        

        
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      under
        the
        Purchase Agreement, the Assignor will exercise its rights and perform its
        obligations under the Purchase Agreement to the extent that such rights and
        obligations have not been assigned hereunder or performed by the Assignee.
        Nothing contained in this Section 3 shall impose upon the Assignee any liability
        for post-delivery adjustments in price, which adjustments it is understood
        and
        agreed will be the sole right and responsibility of the Assignor.

       

      Nothing
        contained herein shall subject the Manufacturer to any liability to which
        it
        would not otherwise be subject under the Purchase Agreement or modify in
        any
        respect the Manufacturer’s contract rights thereunder or require the
        Manufacturer to divest itself of title to or possession of the Aircraft therefor
        until delivery thereof and payment therefor on the delivery date as provided
        therein.

       

      Without
        in any way releasing the Assignor from any of its duties or obligations under
        the Purchase Agreement, the Assignee hereby agrees, expressly for the benefit
        of
        the Manufacturer, that notwithstanding anything contained herein to the
        contrary, insofar as the provisions of the Purchase Agreement relate to the
        Aircraft accepted by Assignee under the Purchase Agreement, in exercising
        any
        rights under the Purchase Agreement, or in making any claim with respect
        to the
        Aircraft or other things (including without limitation data, documents and
        services) delivered or to be delivered pursuant to the Purchase Agreement,
        the
        terms and conditions of the Purchase Agreement, shall apply to and be binding
        upon Assignee to the same extent as if Assignee had been the original “Buyer”
thereunder. Assignee further agrees, expressly for the benefit of the
        Manufacturer, that at any time and from time to time upon the written request
        of
        the Manufacturer, Assignee shall promptly and duly execute and deliver any
        and
        all such further assurances, instruments and documents and take all such
        further
        action as the Manufacturer may reasonably request in order to obtain the
        full
        benefits of Assignee’s agreements set forth in this paragraph.

       

      The
        Assignee hereby confirms that it shall be deemed for all purposes to have
        read
        and be familiar with the Purchase Agreement and to thoroughly understand
        the
        terms and conditions thereof.

       

      4.   On
        the
        delivery date for the Aircraft, the Assignee agrees, subject to satisfaction
        or
        waiver of the conditions set forth in Section 4 of the Participation Agreement
        to purchase the Aircraft from the Manufacturer and, subject to the provisions
        of
        clause (c) of the first paragraph of Section 3 hereof, to pay (or agree to
        pay)
        the Manufacturer an amount equal to the unpaid balance of the purchase price
        payable to the Manufacturer on such Delivery Date for such Aircraft pursuant
        to
        the Purchase Agreement, as such unpaid balance may be adjusted in accordance
        with the terms of the Purchase Agreement and invoiced by the Manufacturer
        to the
        Assignee on or before the delivery date for such Aircraft.

       

      5.  The
        Assignor agrees that at any time and from time to time upon the written request
        of the Assignee, the Assignor will promptly and duly execute and deliver
        any and
        all such further instruments and documents and take such further action as
        the
        Assignee may reasonably request in order to obtain the full benefits of this
        Assignment and of the rights and powers herein granted.

       

      
        
          
          

        

        
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      6.  
The
        Assignor does hereby represent and warrant (a) that the Purchase Agreement
        is in
        full force and effect and is a legal, valid and binding obligation of Assignor,
        enforceable in accordance with its terms and that Assignor is not in default
        thereunder; and (b) that Assignor has not assigned, mortgaged, charged or
        pledged, and hereby covenants that it will not assign, mortgage, charge or
        pledge, so long as this Assignment shall remain in effect, the whole or any
        part
        of the rights hereby assigned or any of its rights with respect to the Aircraft
        under the Purchase Agreement not assigned hereby, to anyone other than the
        Assignee.

       

      7.  The
        Assignee agrees that, so long as the Lease has not been terminated and the
        Assignor remains in possession, it will not enter into any agreement with
        the
        Manufacturer that would amend, modify, rescind, cancel or terminate the Purchase
        Agreement in respect of the Aircraft without the prior written consent of
        the
        Assignor.

       

      8.   
         The
        Assignee agrees that it will not disclose to any third party (other than
        their
        direct and indirect parent companies) the terms of the Purchase Agreement
        (whether or not related to the Aircraft) or this Assignment, except (a) as
        required by applicable law, judicial proceeding or governmental regulation,
        or
        (b) as required for the assignment of its rights under this Assignment in
        accordance with the provisions of Article 16 of the Purchase Agreement, or
        (c)
        with the prior written consent of the Assignor and the Manufacturer, which
        consent shall not be unreasonably withheld with respect to a prospective
        bona
        fide purchaser of the Aircraft. Any disclosure as contemplated in (b) above
        shall include a requirement that the entity to which the information is
        disclosed shall be subject to obligations of nondisclosure with respect to
        such
        information substantially the same as those contained herein.

       

      9.   
         This
        Assignment is executed by the Assignor and the Assignee concurrently with
        the
        execution and delivery of the Lease.

       

      10.   This
        Assignment may be executed by the parties hereto in separate counterparts,
        each
        of which when so executed and delivered shall be an original, but all such
        counterparts shall together constitute but one and the same
        instrument.

       

      11.
          THIS
        PURCHASE AGREEMENT ASSIGNMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
        WITH, THE LAW OF THE STATE OF NEW YORK, UNITED STATES OF AMERICA, WITHOUT
        REGARD
        TO CONFLICT OF LAWS RULES OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL
        OBLIGATIONS LAW.

       

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        remainder of this page has been left blank intentionally.]

       

      
        
          
          

        

        
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      IN
        WITNESS WHEREOF, the parties hereto have caused this Assignment to be duly
        executed as of the day and year first above written.

       

      EXPRESSJET
        AIRLINES, INC.

       

       

      By_________________________

       

       

       

      PM
        LIMITED

       

       

      By_________________________

       

      

       

      [Partial
        Assignment]

       

      

       

      
        
          
            

          

          
          

        

        
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      Annex
        1
        to Purchase Agreement

      Assignment
        No. 1- ___

       

      CONSENT
        AND AGREEMENT No. 1- ___

       

      The
        undersigned, EMBRAER-EMPRESA BRASILEIRA DE AERONAUTICA S.A., a corporation
        organized and existing under the laws of Brazil, hereby acknowledges notice
        of
        and consents to all of the terms of the foregoing Purchase Agreement Assignment
        - No. 1- ___, dated as of _____________________, 200__, between EXPRESSJET
        AIRLINES, INC. and PM LIMITED, to the extent they relate to the Manufacturer
        (herein called the “Assignment”, the defined terms therein being hereinafter
        used with the same meaning) and hereby confirms to the Assignee that: (i)
        all
        representations, warranties, indemnities and agreements of the Manufacturer
        under the Purchase Agreement with respect to the Aircraft shall inure to
        the
        benefit of the Assignee to the same extent as if originally named the “Buyer”
therein, subject to the terms and conditions of the Assignment and the Purchase
        Agreement, except as provided in paragraph 2 of the Assignment, (ii) the
        Assignee shall not be liable for any of the obligations or duties of the
        Assignor under the Purchase Agreement, nor shall the Assignment give rise
        to any
        duties or obligations whatsoever on the part of the Assignee owing to the
        Manufacturer except for the Assignee’s agreement in the Assignment to the effect
        that in exercising any rights under the Purchase Agreement, or in making
        any
        claim with respect to the Aircraft or other things (including without limitation
        data, documents and services) delivered or to be delivered pursuant to the
        Purchase Agreement, the terms and conditions of the Purchase Agreement, shall
        apply to and be binding upon Assignee to the same extent as if Assignee had
        been
        the original “Buyer” thereunder, and with respect to such agreement the
        Manufacturer agrees that, anything contained in the Purchase Agreement or
        the
        Assignment to the contrary notwithstanding, so long as the Manufacturer shall
        not have received notice from Lessor that a Lease Event of Default has occurred
        and is continuing, the Assignee shall not have any responsibility to the
        Manufacturer for failure to comply with any of the terms of the Purchase
        Agreement with respect to the Aircraft while under lease to CAL so long as
        the
        Assignee acts upon the written instructions of the Assignor (or if CAL shall
        have specified in a written notice to Assignee and Manufacturer, CAL) (to
        which
        instructions the Manufacturer understands it shall have access on request);
        provided
        that no
        person other than the Manufacturer shall have any rights against the Assignee
        with respect to the undertaking and agreement set forth in this clause (ii);
        (iii) the Manufacturer will continue to pay to the Assignor (or if CAL shall
        have specified in a written notice to Assignee and Manufacturer, CAL) all
        payments which the Manufacturer may be required to make in respect of the
        Aircraft under the Purchase Agreement unless and until the Manufacturer shall
        have received written notice addressed to its Director of Contracts, by mail
        to
        EMBRAER-Empresa Brasileira de Aeronautica S.A., Av. Brigadeiro Faria Lima,
        2170,
        12.227-901 Sao Jose dos Campos-SP, Brazil, or by fax to fax no: 55 12-3927-1257,
        that a Lease Event of Default has occurred and is continuing (which such
        notice
        from the Assignee shall be conclusive proof thereof to the Manufacturer and
        as
        to which the Manufacturer shall have no obligation to inquire), whereupon
        the
        Manufacturer will, until the Manufacturer shall have received notice in writing
        sent or addressed as aforesaid that no Lease Event of Default exists, make
        any
        and all payments and take any and all actions which it may be required
        thereafter to make or take in respect of the Aircraft under the Purchase
        Agreement and the right to receive which has been assigned under the Assignment
        to the Assignee (which has its registered office at the offices of 

       

      
        
          
          

        

        
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      Caledonian
        Bank & Trust Limited, Caledonian House, P.O. Box 1043, Dr Roy's Drive,
        George Town, Grand Cayman, Cayman Islands); and (iv) from and
        after
        the delivery of the Aircraft and payment in full therefor pursuant to Article
        4
        of the Purchase Agreement as invoiced on the Delivery Date the Manufacturer
        will
        not assert any lien or claim against the Aircraft or any part thereof arising
        with respect to or in connection with any work or other services performed
        before the delivery and acceptance of the Aircraft.

       

      The
        Manufacturer hereby represents and warrants that (A) the Manufacturer is
        a
        corporation duly organized and existing in good standing under the laws of
        Brazil, (B) the making and performance of the Purchase Agreement have been
        duly
        authorized by all necessary corporate action on the part of the Manufacturer,
        do
        not require any stockholder approval, do not contravene the Manufacturer’s
        By-Laws or any indenture, credit agreement or other contractual agreement
        to
        which the Manufacturer is a party or by which it is bound, and the making
        of the
        Purchase Agreement does not contravene any law binding on the Manufacturer,
        (C)
        the making and performance of this Consent and Agreement have been duly
        authorized by all necessary corporate action on the part of the Manufacturer,
        do
        not require any stockholder approval and do not contravene any law binding
        on
        the Manufacturer or contravene the Manufacturer’s By-laws or any indenture,
        credit agreement or other contractual agreement to which the Manufacturer
        is a
        party or by which it is bound and (D) the Purchase Agreement constituted
        as of
        the date thereof and at all times thereafter to and including the date of
        this
        Consent and Agreement constitutes a binding obligation of the Manufacturer
        enforceable against the Manufacturer in accordance with its terms subject
        to:
        (i) the limitations of applicable bankruptcy, insolvency, reorganization,
        moratorium or similar laws affecting the rights of creditors generally; and
        (ii)
        general principles of equity (regardless of whether such enforceability is
        considered in a proceeding in equity or at law), which principles do not
        make
        the remedies available at law or in equity with respect to the Purchase
        Agreement inadequate for the practical realization of the benefits intended
        to
        be provided thereby and this Consent and Agreement is a binding obligation
        of
        the Manufacturer enforceable against the Manufacturer in accordance with
        its
        terms subject to: (a) the limitations of applicable bankruptcy, insolvency,
        reorganization, moratorium or similar laws affecting the rights of creditors
        generally; and (b) general principles of equity (regardless of whether such
        enforceability is considered in a proceeding in equity or at law), which
        principles do not make the remedies available at law or in equity which respect
        to this Consent and Agreement inadequate for the practical realization of
        the
        benefits intended to be provided thereby. It is understood that the execution
        by
        the Manufacturer of this Consent and Agreement is subject to the condition
        that
        concurrently with the delivery of the Aircraft the Aircraft will be leased
        to
        Lessee under the Lease Agreement.

       

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        remainder of this page has been left blank intentionally.]

       

      

      
        
          
          

        

        
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      This
        Consent and Agreement shall be governed by the laws of the State of New York,
        including all matters of construction, validity and performance, as applicable
        to contracts between citizens of the state to be performed wholly within
        that
        state, and without regard to conflicts of law rules other than Section 5-1401
        of
        the New York General Obligations Law.

       

      Dated
        as
        of

      _____________________,
        200__

      EMBRAER-EMPRESA
        BRASILEIRA 

      DE
        AERONAUTICA S.A.

      

      

      By_____________________________

          
        Title:

      

      

      By____________________________

          
        Title:

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

       

      

      [Consent
        and Agreement]

      

      

      
        
          
            

          

          
          

        

        
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      EXHIBIT
        D-3 to

      Note
        Purchase Agreement

       

      FORM
        OF
        PURCHASE AGREEMENT ASSIGNMENT

      
      

      (NEW
        AIRCRAFT)

      

      PURCHASE
        AGREEMENT ASSIGNMENT NO. 2 - _____

       

             
        PURCHASE AGREEMENT ASSIGNMENT NO. 2 - _____ , dated as of _______________
        ___,
        200___ (this “Assignment”), between PM LIMITED,
        a
        Cayman Islands company (the “Assignor” or “PM Limited”), and WELLS FARGO BANK
        NORTHWEST, NATIONAL ASSOCIATION, not in its individual capacity but solely
        as
        Owner Trustee (the “Assignee”).

      

      Recitals

      

      WHEREAS,
        EXPRESSJET AIRLINES, INC., a Delaware corporation (“Express”) and
        EMBRAER-Empresa Brasileira de Aeronautica S.A., a corporation organized under
        the laws of Brazil (“Embraer”), have entered into the Purchase Agreement,
        pursuant to which, among other things, Embraer has agreed to manufacture
        and
        sell to Express, and Express has agreed to purchase from Embraer, certain
        aircraft, including the Aircraft (as defined in the Purchase Agreement
        Assignment No. 1 described below);

      

      WHEREAS,
        pursuant to a Purchase Agreement Assignment No. 1 - _____, dated as of the
        date
        hereof (“PAA No. 1”), between Express and PM Limited, Express has, among other
        things, assigned to PM Limited, with the consent of the Manufacturer, certain
        of
        its right, title and interest in, to and under the Purchase Agreement including,
        without limitation, the right to purchase the Aircraft from Embraer upon
        and
        subject to the terms and conditions set forth in the Purchase Agreement and
        PAA
        No. 1; 

      

      WHEREAS,
        PM Limited has purchased the Aircraft from Embraer and, concurrently therewith,
        has sold the Aircraft to Wells Fargo Bank Northwest, National Association,
        acting not in its individual capacity but solely as Owner Trustee under the
        Trust Agreement _____ dated as of the date hereof (the “Original Trust
        Agreement”), between Refine, Inc., as Owner Participant (the “Owner
        Participant”), and Wells Fargo Bank Northwest, National Association (“Wells
        Fargo”); 

      

      WHEREAS,
        in connection with the sale of the Aircraft by PM Limited to the Owner Trustee
        and with the consent of the Manufacturer, PM Limited shall, pursuant to this
        Assignment, transfer to the Owner Trustee all of PM Limited’s present and future
        rights, title, obligations and interests in, to and under the Purchase Agreement
        as assigned by PAA No. 1, except for PM Limited’s right to purchase the Aircraft
        from the Manufacturer pursuant to Section 2(a) of PAA No. 1; 

      

      WHEREAS,
        the Owner Trustee desires to (i) issue Equipment Notes (as defined in Annex
        A to
        the Lease Agreement referred to herein) for the purpose of enabling the Owner
        Participant to repay, in part, the indebtedness relating to the acquisition
        of
        the Aircraft by the Owner Trustee, and (ii) lease the Aircraft to Continental
        Airlines, Inc. (“Continental”) pursuant to the Lease Agreement (as hereinafter
        defined); and

      

      
        
          
          

        

        
          
          

          
            

          

        

        
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      WHEREAS,
        to facilitate the transactions described in the immediately preceding Whereas
        clause, the Manufacturer is willing to execute and deliver to the Assignee
        a
        Consent and Agreement to the provisions hereof in substantially the form
        attached hereto as Annex 1;

      

      NOW,
        THEREFORE, in consideration of the foregoing premises and the mutual covenants
        and agreements of the parties contained herein, and for other good and valuable
        consideration, the receipt and adequacy of which is hereby acknowledged the
        parties hereto agree as follows:

      

      Section
        1. Definitions.
        Capitalized terms used but not defined herein shall have the respective meanings
        set forth or incorporated by reference, and shall be construed and interpreted
        in the manner described, in PAA No. 1.

      

      Section
        2. Transfer
        and Assumption.
        The
        Assignor does hereby sell, assign and transfer to the Assignee all of the
        Assignor’s present and future rights, title, obligations and interest in, to and
        under the Purchase Agreement as assigned by PAA No. 1, excluding the right
        to
        purchase the Aircraft from the Manufacturer (the “Assignor’s Interest”) and the
        Assignee hereby accepts the Assignor’s Interest from the Assignor. The Assignee
        agrees that it shall be bound by all the terms of, and shall assume and
        undertake to perform all the obligations of, the Assignor with respect to
        the
        Assignor’s Interest. 

      

      Section
        3. Confidential
        Treatment.
        The
        Assignee and the Assignor agree that the provisions of Paragraph 8 of PAA
        No. 1
        are hereby terminated and superseded by the provisions of this Section 3
        and, in
        furtherance thereof, agree that they will not disclose to any third party
        (other
        than their direct and indirect parent companies) the terms of the Purchase
        Agreement (whether or not related to the Aircraft) or PAA No. 1 or this
        Assignment, except (a) as required by applicable law, judicial proceeding
        or
        governmental regulation, (b) in the case of the Assignee, as required for
        the
        assignment of its rights under this Assignment in accordance with the provisions
        of Article 16 of the Purchase Agreement, (c) with the prior written consent
        of
        Express, the Assignor and the Manufacturer, which consent shall not be
        unreasonably withheld with respect to a prospective bona fide purchaser of
        the
        Aircraft, (d) to prospective and permitted transferees of Owner Participant’s
        interest or their or Owner Participant’s respective counsel or special counsel,
        independent insurance brokers, auditors, or other agents, (e) as otherwise
        permitted by the Operative Agreements (as defined in Annex A to the Lease),
        or
        (f) to such other Persons as are reasonably deemed necessary by the disclosing
        party for the purposes of enforcing such documents by such party; provided
        that any
        such disclosure under this sentence shall be made only to the extent necessary
        to meet the specific requirements or needs of the Assignee or PM Limited,
        as the
        case may be. Any disclosure as contemplated in (b), (c) or (d) above shall
        include a requirement that the entity to which the information is disclosed
        shall be subject to obligations of nondisclosure with respect to such
        information substantially the same as those contained herein.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
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      Section
        4. Assignment
        to Mortgagee.
        The
        right, title and interest of the Assignee in and to this Assignment has,
        contemporaneously with the execution and delivery hereof, been assigned to
        and
        is subject to a security interest in favor of the Mortgagee (as such terms
        and
        the other capitalized terms used hereinafter in this sentence are defined
        in
        Appendix A to the Lease) under the Trust Indenture, for the benefit of the
        Loan
        Participants and the Note Holders referred to the Trust Indenture, all to
        the
        extent provided in such Trust Indenture. The Assignor hereby consents to
        such
        assignment and to the creation of such security interest in and to this
        Assignment.

      

      Section
        5. Notices.
        Any
        notices provided for in PAA No. 1 shall be delivered to the Assignee at the
        following address or such other place as the Assignee may designate in
        accordance with PAA No. 1:

      

      Wells
        Fargo Bank Northwest, 

      National
        Association

      MAC:
        U1228-120

      Attn:
        Corporate Trust Dept.

      299
        S.
        Main Street, 12th Floor

      Salt
        Lake
        City, UT 84111

      Facsimile:
        801-246-5053

      

      Section
        6. Headings.
        The
        headings of the Sections herein are for convenience of reference only and
        shall
        not define or limit any of the terms or provisions hereof.

      

      Section
        7. GOVERNING
        LAW.
        THIS
        ASSIGNMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW
        OF
        THE STATE OF NEW YORK, UNITED STATES OF AMERICA, WITHOUT REGARD TO CONFLICT
        OF
        LAWS RULES OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS
        LAW.

      

      Section
        8. Counterparts.
        This
        Agreement and any amendments, waivers, consents or supplements hereto may
        be
        executed in any number of counterparts (or upon separate signature pages
        bound
        together into one or more counterparts), each of which when so executed shall
        be
        deemed to be an original, and all of which counterparts, taken together,
        shall
        constitute one and the same instrument.

      

      Section
        9. Purchase
        Agreement.
        The
        rights and obligations of the parties hereto are subject to the terms and
        conditions of the Purchase Agreement.

      

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        of the Page is Intentionally Left Blank.]

      
        
          
          

        

        
          
          

          
            

          

        

        
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      IN
        WITNESS WHEREOF, the parties hereto have caused this Assignment to be duly
        executed as of the day and year first written above.

      

      

      PM
        LIMITED, as Assignor

      

      

      By:______________________
        

           
        Name: 

           
        Title:  

      

      

      WELLS
        FARGO BANK NORTHWEST, 

      NATIONAL
        ASSOCIATION, not in its individual 

      capacity
        but solely as Owner Trustee, as Assignee

      

      

      By:
        ________________________ 

           
        Name: 

           
        Title:  

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
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      Annex
        1
        to Purchase 

      Agreement
        Assignment No. 2 - _____

      

      CONSENT
        AND AGREEMENT No. 2 - _____

      

      The
        undersigned, EMBRAER-EMPRESA BRASILEIRA DE AERONAUTICA S.A., a corporation
        organized and existing under the laws of Brazil, hereby acknowledges notice
        of
        and consents to all of the terms of the foregoing Purchase Agreement Assignment
        No. 2 - _____, dated as of _________________ ___, 200__, by and among PM
        LIMITED
        and
        WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION, not in its individual capacity
        but solely as Owner Trustee, to the extent they relate to the Manufacturer
        (herein called the “Assignment No. 2”, the defined terms therein being
        hereinafter used with the same meaning) and hereby confirms to the Assignee
        that: (i) all representations, warranties, indemnities and agreements of
        the
        Manufacturer under the Purchase Agreement with respect to the Aircraft shall
        inure to the benefit of the Assignee to the same extent as if originally
        named
        the “Buyer” therein, subject to the terms and conditions of the Assignment No.
        2, the Purchase Agreement and PAA No. 1; (ii) the Assignee shall not be liable
        for any of the obligations or duties of Express under the Purchase Agreement,
        nor shall the Assignment No. 2 give rise to any duties or obligations whatsoever
        on the part of the Assignee owing to the Manufacturer except for the Assignee’s
        agreement to the effect that in exercising any rights under the Purchase
        Agreement, or in making any claim with respect to the Aircraft or other things
        (including without limitation data, documents and services) delivered or
        to be
        delivered pursuant to the Purchase Agreement, the terms and conditions of
        the
        Purchase Agreement shall apply to and be binding upon the Assignee to the
        same
        extent as if the Assignee had been the original “Buyer” thereunder, and with
        respect to such agreement the Manufacturer agrees that, anything contained
        in
        the Purchase Agreement or the Assignment No. 2 to the contrary notwithstanding,
        so long as the Manufacturer shall not have received notice that a Lease Event
        of
        Default has occurred and is continuing, the Assignee shall not have any
        responsibility to the Manufacturer for failure to comply with any of the
        terms
        of the Purchase Agreement with respect to the Aircraft while under lease
        to
        Continental so long as the Assignee acts upon the written instructions of
        Express (or, if Continental shall have specified in a written notice to the
        Assignee and the Manufacturer that Continental is entitled to possession
        of the
        Aircraft, Continental) (to which instructions the Manufacturer understands
        it
        shall have access on request); provided
        that no
        person other than the Manufacturer shall have any rights against the Assignee
        with respect to the undertaking and agreement set forth in this clause (ii);
        (iii) the Manufacturer will continue to pay to Express (or, if Continental
        shall
        have specified in a written notice to the Assignee and the Manufacturer that
        Continental is entitled to possession of the Aircraft, Continental) all payments
        which the Manufacturer may be required to make in respect of the Aircraft
        under
        the Purchase Agreement unless and until the Manufacturer shall have received
        written notice addressed to its Contracts Administrator, by mail to
        EMBRAER-Empresa Brasileira de Aeronautica S.A., Av. Brigadeiro Faria Lima,
        2170,
        12.227-901 Sao Jose dos Campos-SP, Brazil, or by fax to fax no: 55 12-3927-1257,
        that a Lease Event of Default has occurred and is continuing (which such
        notice
        from the Assignee shall be conclusive proof thereof to the 

      
        
          
          

        

        
          
          

          
            

          

        

        
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      Manufacturer
        and as to which the Manufacturer shall have no obligation to inquire), whereupon
        the Manufacturer will, until the Manufacturer shall have received notice
        in
        writing sent or addressed as aforesaid that no Lease Event of Default exists,
        make any and all payments and take any and all actions which it may be required
        thereafter to make or take in respect of the Aircraft under the Purchase
        Agreement and the right to receive which has been assigned under the Assignment
        No. 2 directly to the Assignee at its address at MAC: U1228-120, 299 S. Main
        Street, 12th Floor, Salt Lake City, Utah 84111, telecopy no. 801-246-5053;
        (iv)
        from and after the delivery of the Aircraft on the Delivery Date, the
        Manufacturer will not assert any lien or claim against the Aircraft or any
        part
        thereof arising with respect to or in connection with any work or other services
        performed before the delivery and acceptance of the Aircraft; and (v) the
        Manufacturer consents to the grant of a security interest in the Purchase
        Agreement pursuant to the Trust Indenture (as defined in Appendix A to the
        Lease).

      

      The
        Manufacturer hereby represents and warrants that (A) the Manufacturer is
        a
        corporation duly organized and existing in good standing under the laws of
        Brazil, (B) the making and performance of the Purchase Agreement have been
        duly
        authorized by all necessary corporate action on the part of the Manufacturer,
        do
        not require any stockholder approval, do not contravene the Manufacturer’s
        By-Laws or any indenture, credit agreement or other contractual agreement
        to
        which the Manufacturer is a party or by which it is bound, and the making
        of the
        Purchase Agreement does not contravene any law binding on the Manufacturer,
        (C)
        the making and performance of this Consent and Agreement have been duly
        authorized by all necessary corporate action on the part of the Manufacturer,
        do
        not require any stockholder approval and do not contravene any law binding
        on
        the Manufacturer or contravene the Manufacturer’s By-laws or any indenture,
        credit agreement or other contractual agreement to which the Manufacturer
        is a
        party or by which it is bound, (D) the Purchase Agreement constituted as
        of the
        date thereof and at all times thereafter to and including the date of this
        Consent and Agreement constitutes a binding obligation of the Manufacturer
        enforceable against the Manufacturer in accordance with its terms subject
        to:
        (i) the limitations of applicable bankruptcy, insolvency, reorganization,
        moratorium or similar laws affecting the rights of creditors generally) and
        (ii)
        general principles of equity (regardless of whether such enforceability is
        considered in a proceeding in equity or at law), and (E) this Consent and
        Agreement is a binding obligation of the Manufacturer enforceable against
        the
        Manufacturer in accordance with its terms subject to: (a) the limitations
        of
        applicable bankruptcy, insolvency, reorganization, moratorium or similar
        laws
        affecting the rights of creditors generally; and (b) general principles of
        equity (regardless of whether such enforceability is considered in a proceeding
        in equity or at law). It is understood that the execution by the Manufacturer
        of
        this Consent and Agreement is subject to the condition that concurrently
        with
        execution and delivery hereof the Aircraft will be leased to Continental
        under
        the Lease Agreement.

      

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      This
        Consent and Agreement shall be governed by the laws of the State of New York,
        including all matters of construction, validity and performance, as applicable
        to contracts between citizens of the state to be performed wholly within
        that
        state, and without regard to conflicts of law rules other than Section 5-1401
        of
        the New York General Obligations Law.

      

      Dated
        as
        of ___________ ____, 200__.

      

      EMBRAER-EMPRESA
        BRASILEIRA

      DE
        AERONAUTICA S.A.

       

      

      By____________________________ 

      Title:

      
 

      By____________________________ 

      Title:

      

      

      
        
          
            

          

          
          

        

        
          
          

          
            

          

        

        
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      EXHIBIT
        E to

      Note
        Purchase Agreement

       

      FORM
        OF
        TRUST AGREEMENT

      

      

      (Filed
        Separately)

      

      
        
          
            

          

          
          

        

        
          
          

          
            

          

        

        
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      FINAL

       

      EXHIBIT
        F

      TO

      NOTE
        PURCHASE AGREEMENT

       

      DELIVERY
        NOTICE

       

      Dated
        as
        of [__]

       

      To
        each
        of the addressees listed

      in
        Schedule A hereto

       

      
        	 	
                Re:

              	
                Delivery
                  Notice in accordance with Note Purchase Agreement referred to
                  below

              

      

       

      Ladies
        and Gentlemen:

       

       

            
        Reference is made to the Note Purchase Agreement, dated as of September 22,
        2005, among Continental Airlines, Inc. (the “Company”),
        Wilmington Trust Company, as Pass Through Trustee under the Pass Through
        Trust
        Agreement (as defined therein) (the “Pass
        Through Trustee”),
        Wilmington Trust Company, as Subordination Agent (the “Subordination
        Agent”),
        Wells
        Fargo Bank Northwest, National Association, as Escrow Agent (the “Escrow
        Agent”)
        and
        Wilmington Trust Company, as Paying Agent (the “Paying
        Agent”)
        (as in
        effect from time to time, the “Note
        Purchase Agreement”).
        Unless otherwise defined herein, capitalized terms used herein shall have
        the
        meanings set forth in the Note Purchase Agreement or, to the extent not defined
        therein, the Intercreditor Agreement.

       

             
        Pursuant to Section 1(b) of the Note Purchase Agreement, the undersigned
        hereby
        notifies you, in respect of the Embraer Model EMB-145 XR aircraft with
        manufacturer’s serial number [MSN] (the “Aircraft”),
        of
        the following:

       

       

      
        
          	(1)	
                  The
                    Scheduled Closing Date of the Aircraft is [_________];
                    and

                

        

         

        
          
            	(2)	
                    The
                      principal amount of the Equipment Notes to be issued, and purchased
                      by the
                      Pass Through Trustee  on such Scheduled Closing
                      Date, in connection with the financing of  such Aircraft is
                      $[_______].

                  

          

        

         

      

      
        	
                 

              	
                The
                  Company hereby instructs the Pass Through Trustee to (i) execute
                  a
                  Withdrawal Certificate in the form of Annex A hereto dated as of
                  [__________] and attach 

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          Table
            of Contents

           

           

        

      

      thereto
        a
        Notice of Purchase Withdrawal dated such date completed as set forth on Exhibit
        A hereto and (ii) deliver such Withdrawal Certificate and Notice of Purchase
        Withdrawal to the Escrow Agent.1

       

       

      The
        Company hereby instructs the Pass Through Trustee to (i) purchase Equipment
        Notes in an amount set forth in clause (2) above with a portion of the proceeds
        [of the withdrawals of Deposits referred to in the Notice of Purchase Withdrawal
        referred to above]2
        [received on the Scheduled Closing Date from the Underwriter]3
        and (ii)
        re-deposit with the Depositary any amount not used on the Scheduled Closing
        Date
        to purchase Equipment Notes.

       

      The
        Company hereby instructs the Pass Through Trustee to (a) enter into the
        Participation Agreement [TN] dated as of [__________] among the Company,
        as
        Lessee, Wilmington Trust Company, as Mortgagee and Loan Participant, Wells
        Fargo
        Bank Northwest, National Association, as Owner Trustee and Lessor, [_______],
        as
        Owner Participant, and Embraer-Empresa Brasileira de Aeroná;utica, (b) perform
        its obligations thereunder and (c) deliver such certificates, documents and
        legal opinions relating to the Pass Through Trustee as required thereby.
        

       

      Yours
        faithfully,

       

      Continental
        Airlines, Inc.

       

      By:______________________ 

         Name:

         Title:

      

      

      

      

      

      

      

      

       

      

      _________________________

      

      1. Eliminate
        if the Scheduled Closing Date is the Issuance Date.

      

      2. Eliminate
        if the Scheduled Closing Date is the Issuance Date.

      

      3. Insert
        if
        the Scheduled Closing Date is the Issuance Date.

      

      
        
          
            

          

          
          

        

        
          2

          
            

          

        

        
          Table
            of Contents

          
             

             

          

        

      

      SCHEDULE
        A

       

      Wilmington
        Trust Company, as

      Pass
        Through Trustee, Subordination

      Agent
        and
        Paying Agent 

      Rodney
        Square North

      1100
        North Market Street

      Wilmington,
        Delaware 19890

      Attention:
        Corporate Trust Administration

      Facsimile:
        (302) 651-8882

       

      Wells
        Fargo Bank Northwest, National Association,

      MAC:U1228-120
        as Escrow Agent

      299
        South
        Main Street, 12th Floor

      Salt
        Lake
        City, Utah 84111

      Attention:
        Corporate Trust Services

      Facsimile:
        (801) 246-5053

       

      Citibank,
        N.A.

      388
        Greenwich Street, 14th
        Floor

      New
        York,
        New York 10013

      Attention:
        Barbara Bennett

      Facsimile:
        (212) 657-2762

       

      Standard
        & Poor’s Ratings Services

      55
        Water
        Street, 35th Floor

      New
        York,
        New York 10004

      Attention:
        Michael K. Vernier

      Facsimile:
        (212) 438-6632

       

      Moody’s
        Investors Service, Inc.

      99
        Church
        Street

      New
        York,
        New York 10007

      Attention:
        Gregory Clifton

      Facsimile:
        (212) 298-7499

       

      

      
        
          
            

          

          
          

        

        
          
          

          
            

          

        

        
          Table
            of Contents

          
            

          

        

      

      Annex
        A

       

      WITHDRAWAL
        CERTIFICATE

       

      Wells
        Fargo Bank Northwest, National Association

      as
        Escrow
        Agent

       

      Ladies
        and Gentlemen:

       

      Reference
        is made to the Escrow and Paying Agent Agreement, dated as of August [__],
        2005 (the “Agreement”). We hereby certify to you that the conditions to the
        obligations of the undersigned to execute a Participation Agreement pursuant
        to
        the Note Purchase Agreement have been satisfied. Pursuant to Section 1.02(c)
        of
        the Agreement, please execute the attached Notice of Purchase Withdrawal
        and
        immediately transmit by facsimile to the Depositary, at (212) 657-2762
        (Attention: Barbara Bennett). Capitalized terms used herein but not defined
        herein shall have the meanings set forth in the Agreement.

       

       

       

      
        
          
            	 	 Very
                    truly yours,
                     

                     

                     

                  	 
	 	 

                    WILMINGTON
                      TRUST COMPANY, 

                    
                      not
                        in its individual capacity but 

                      solely
                        as Pass Through Trustee 

                    

                  	 

          

           

           

           

          
            
              	 	 By:	 ___________________________________________________	 
	 	
                       

                    	 Name:	 
	 	 	 Title:	 

            

          

        

      

      
                                                                                                             
          

      

      

       

      Dated:
        As
        of ____________, 200_

       

      

      

      

      

      
        
          
            

          

          
          

        

        
          
          

          
            

          

        

        
          Table
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      Exhibit
        A

       

      NOTICE
        OF
        PURCHASE WITHDRAWAL

      

      

       

      Citibank,
        N.A.

      388
        Greenwich Street, 14th
        Floor

      New
        York,
        New York 10013

      Attention:
        Barbara Bennett

      Telecopier:
        (212) 657-2762

       

      Ladies
        and Gentlemen:

       

      Reference
        is made to the Deposit Agreement dated as of August [__], 2005 (the
“Deposit
        Agreement”)
        between Wells Fargo Bank Northwest, National Association, as Escrow Agent,
        and
        Citibank, N.A., as Depositary (the “Depositary”).

       

      In
        accordance with Section 2.3(a) of the Deposit Agreement, the undersigned
        hereby
        requests the withdrawal of the entire amount of the Deposit, $[_______],
        Account
        No. [____________].

       

      The
        undersigned hereby directs the Depositary to pay the proceeds of the Deposit
        to
        [________________], Account No. [_____], Reference: [_________] on [_________
        __, 200__], upon the telephonic request of a representative of the Pass Through
        Trustee.

       

      

      WELLS
        FARGO BANK NORTHWEST, 

                                                         
        NATIONAL ASSOCIATION, 

                                                         
        as
        Escrow Agent

      

      

      By__________________________

                               Name:

                                  
        Title:

       

      Dated:
        As
        of _______ __, 200_Exhibit 4.7 - Form of Participation Agreement

    FINAL

    
      
        
          
            
              
                	
                        CONFIDENTIAL:
                          Subject to Restrictions on Dissemination

                        Set
                          Forth in Section 8 of this
                          Agreement

                      

              

               

              
                

                

              

            

          

          
            PARTICIPATION
              AGREEMENT
              [TN]

          

        

      

    

     

    Dated
      as
      of [DD]

     

    Among

     

    CONTINENTAL
      AIRLINES, INC.,

    Lessee,

     

    [OP],

    Owner
      Participant,

     

    WELLS
      FARGO BANK NORTHWEST, NATIONAL ASSOCIATION,

    Not
      in
      its individual capacity

    except
      as
      expressly provided herein,

    but
      solely as owner trustee,

    Owner
      Trustee and Lessor

     

    WILMINGTON
      TRUST COMPANY,

    Not
      in
      its individual capacity

    except
      as
      expressly provided herein,

    but
      solely as Mortgagee, Subordination Agent 

    under
      the
      Intercreditor Agreement, and Pass Through 

    Trustee
      under the Pass Through Trust Agreement,

    Mortgagee
      and Loan Participant,

     

    and

     

    EMBRAER-EMPRESA
      BRASILEIRA DE AERONÁUTICA S.A.

     

    Airframe
      Manufacturer

    
      

    

    One
      Embraer Model EMB-145 XR Aircraft

    Bearing
      Manufacturer’s Serial No. [MSN]

    and
      U.S.
      Registration No. N[REG]

    with
      Two
      Allison Model AE3007A1E Engines

     

    
      

    

    
      

    

    
      
        
        

      

      
        
          

        

      

      
        
        

      

      CONTENTS

    

     

      
        	
                SECTION
                  1. DEFINITIONS
                  AND CONSTRUCTION

              	
                2

              
	
                 

                SECTION
                  2. ISSUANCE
                  OF EQUIPMENT NOTES; TERMINATION OF OBLIGATION TO
                  PARTICIPATE

              	
                2

              
	
                2.1 Issuance
                  of Equipment Notes

              	
                2

              
	
                2.2 Termination
                  of Obligation to Participate

              	
                2

              
	
                 

                SECTION
                  3. TERMINATION
                  OF EXISTING FINANCING AGREEMENTS; COMMITMENT TO LEASE
                  AIRCRAFT

              	
                3

              
	
                3.1 Termination
                  of Existing Financing Agreements

              	
                3

              
	
                3.2 Commitment
                  to Lease

              	
                3

              
	
                 

                SECTION
                  4. CLOSING;
                  PROCEDURE FOR PAYMENT; POSTPONEMENT OF SCHEDULED CLOSING
                  DATE

              	
                3

              
	
                4.1 Closing

              	
                3

              
	
                4.2 Payment
                  of Proceeds

              	
                4

              
	
                4.3 Postponement
                  of Scheduled Closing Date

              	
                4

              
	
                 

                SECTION
                  2. PARTICIPATION
                  IN LESSOR’S COST; ISSUANCE OF EQUIPMENT NOTES; TERMINATION OF OBLIGATION
                  TO PARTICIPATE

              	
                5

              
	
                2.1 Participation
                  in Lessor’s Cost

              	
                5

              
	
                2.2 Nature
                  of Obligations of Participants

              	
                5

              
	
                2.3 Termination
                  of Obligation to Participate

              	
                5

              
	
                 

                SECTION
                  3. COMMITMENT
                  TO LEASE AIRCRAFT

              	
                5

              
	
                 

                SECTION
                  4. PROCEDURE
                  FOR PARTICIPATION IN PAYMENT OF LESSOR’S COST; POSTPONEMENT OF SCHEDULED
                  DELIVERY DATE

              	
                6

              
	
                4.1 Closing

              	
                6

              
	
                4.2 Payment
                  of Lessor’s Cost

              	
                6

              
	
                4.3 Postponement
                  of Scheduled Closing Date

              	
                7

              
	
                 

                SECTION
                  5. CONDITIONS
                  PRECEDENT

              	
                7

              
	
                5.1 Conditions
                  Precedent to Obligations of Participants

              	
                7

              
	
                5.2 Conditions
                  Precedent to Obligations of Owner Trustee

              	
                13

              
	
                5.3 Conditions
                  Precedent to Obligations of Mortgagee

              	
                14

              
	
                5.4 Conditions
                  Precedent to Obligations of Lessee

              	
                14

              
	
                5.5 Post-Registration
                  Opinion

              	
                15

              
	
                 

                SECTION
                  6. REPRESENTATIONS
                  AND WARRANTIES

              	
                15

              
	
                6.1 Lessee’s
                  Representations and Warranties

              	
                15

              
	
                6.2 Owner
                  Participant’s Representations and Warranties

              	
                18

              
	
                6.3 Wells
                  Fargo’s Representations and Warranties

              	
                20

              
	
                6.4 WTC’s
                  Representations and Warranties

              	
                23

              
	
                6.5 Airframe
                  Manufacturer’s Representations and Warranties

              	
                26

              

      

       

      
        
          
            
            

          

          
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              i

            
              

            

          

          
            Table
              of Contents

          

        

      
        	
                SECTION
                  7. COVENANTS,
                  UNDERTAKINGS AND AGREEMENTS

              	
                28

              
	
                7.1 Covenants
                  of Lessee

              	
                28

              
	
                7.2 Covenants
                  of Owner Participant

              	
                30

              
	
                7.3 Covenants
                  of Wells Fargo and Owner Trustee

              	
                32

              
	
                7.4 Covenants
                  of WTC

              	
                34

              
	
                7.5 Covenants
                  of Note Holders

              	
                35

              
	
                7.6 Agreements

              	
                36

              
	
                 

                SECTION
                  8. CONFIDENTIALITY

              	
                42

              
	
                 

                SECTION
                  9. INDEMNIFICATION
                  AND EXPENSES

              	
                42

              
	
                9.1 General
                  Indemnity

              	
                42

              
	
                9.2 Expenses

              	
                48

              
	
                9.3 General
                  Tax Indemnity

              	
                48

              
	
                9.4 Payments

              	
                58

              
	
                9.5 Interest

              	
                58

              
	
                9.6 Benefit
                  of Indemnities

              	
                58

              
	
                 

                SECTION
                  10. ASSIGNMENT
                  OR TRANSFER OF INTERESTS

              	
                58

              
	
                10.1 Participants,
                  Owner Trustee and Note Holders

              	
                58

              
	
                10.2 Effect
                  of Transfer

              	
                60

              
	
                 

                SECTION
                  11. [RESERVED]

              	
                60

              
	
                 

                SECTION
                  12. SECTION
                  1110

              	
                60

              
	
                 

                SECTION
                  13. CHANGE
                  OF CITIZENSHIP

              	
                61

              
	
                13.1 Generally

              	
                61

              
	
                13.2 Owner
                  Participant

              	
                61

              
	
                13.3 Owner
                  Trustee

              	
                61

              
	
                13.4 Mortgagee

              	
                62

              
	
                 

                SECTION
                  14. CONCERNING
                  OWNER TRUSTEE

              	
                62

              
	
                 

                SECTION
                  15. MISCELLANEOUS

              	
                62

              
	
                15.1 Amendments

              	
                62

              
	
                15.2 Severability

              	
                62

              
	
                15.3 Survival

              	
                63

              
	
                15.4 Reproduction
                  of Documents

              	
                63

              
	
                15.5 Counterparts

              	
                63

              
	
                15.6 No
                  Waiver

              	
                63

              
	
                15.7 Notices

              	
                63

              
	
                15.8 GOVERNING
                  LAW; SUBMISSION TO JURISDICTION; VENUE

              	
                64

              
	
                15.9 Third-Party
                  Beneficiary

              	
                65

              
	
                15.10 Entire
                  Agreement

              	
                65

              
	
                15.11 Further
                  Assurances

              	
                65

              

      

       

    

    
      
        
        

      

      
        PAGE
          ii

        
          

        

      

      
        Table
          of Contents

      

    

     

     

     

    ANNEX,
      SCHEDULES AND EXHIBITS

     

    ANNEX
      A
      - Definitions

     

    SCHEDULE
      1 - Accounts;
      Addresses

    SCHEDULE
      2 - Commitments

    SCHEDULE
      3 - Certain
      Terms

     

    EXHIBIT
      A   -    Opinion
      of special counsel to Lessee

    EXHIBIT
      B    -    Opinion
      of corporate counsel to Lessee

    EXHIBIT
      C-1  -    Opinion
      of corporate counsel to Airframe Manufacturer 

    EXHIBIT
      C-2  -    Opinion
      of special counsel to Airframe Manufacturer

    EXHIBIT
      D      -    Opinion
      of special counsel to Owner Trustee

    EXHIBIT
      E    -    Opinion
      of special counsel to Mortgagee

    EXHIBIT
      F    -    Opinion
      of special counsel to Owner Participant

    EXHIBIT
      G    -    Opinion
      of special counsel in Oklahoma City, Oklahoma

    EXHIBIT
      H    -    Opinion
      of special counsel to Seller

     

     

     

     

     

     

    
 

    

    
      
        
        

      

      
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          iii

        
          

        

      

      
        Table
          of Contents

      

    

    PARTICIPATION
      AGREEMENT [TN]

    
       

      PARTICIPATION
        AGREEMENT [TN], dated as of [DD] (this “Agreement”), among (a) CONTINENTAL
        AIRLINES, INC., a Delaware corporation (“Lessee”), (b) [OP], a corporation
        organized under the laws of the OP Jurisdiction (“Owner Participant”),
        (c) WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION, a national banking
        association, not in its individual capacity, except as expressly provided
        herein, but solely as Owner Trustee (this and all other capitalized terms
        used
        but not defined herein shall have the respective meanings ascribed thereto
        in
        Section 1) (in its capacity as Owner Trustee, “Owner Trustee” or “Lessor”,
        and in its individual capacity, “Wells Fargo”), (d) WILMINGTON TRUST
        COMPANY, a Delaware banking corporation, not in its individual capacity,
        except
        as expressly provided herein, but solely as Mortgagee (in its capacity as
        Mortgagee, “Mortgagee” and in its individual capacity, “WTC”),
        (e) WILMINGTON TRUST COMPANY, not in its individual capacity, except as
        expressly provided herein, but solely as Pass Through Trustee under the Pass
        Through Trust Agreement (“Pass Through Trustee”), (f) WILMINGTON TRUST COMPANY,
        not in its individual capacity, except as expressly provided herein, but
        solely
        as Subordination Agent under the Intercreditor Agreement (“Subordination
        Agent”), and (g) EMBRAER-EMPRESA BRASILEIRA DE AERONÁUTICA S.A., a company
        organized under the laws of Brazil (“Airframe Manufacturer”).

       

      RECITALS

       

      A.
         Express
        and Airframe Manufacturer have entered into the Purchase Agreement, pursuant
        to
        which, among other things, Airframe Manufacturer has agreed to manufacture
        and
        sell to Express and Express has agreed to purchase from Airframe Manufacturer
        certain aircraft, including the Aircraft.

       

      [B.
         Prior
        to
        the date hereof, in connection with the interim financing of the Aircraft,
        (i) certain of Express’ rights under the Purchase Agreement with respect to
        the Aircraft were assigned to Lessor and (ii) the Aircraft was purchased by
        Lessor, leased to Lessee pursuant to the Existing Lease and subleased to
        Express
        pursuant to the Existing Sublease.]1

       

      [B.
         On
        the
        Delivery Date, Express and Seller will enter into the Initial Purchase Agreement
        Assignment and Seller and Owner Trustee will enter into the Purchase Agreement
        Assignment, pursuant to which, among other things, Express’ right to purchase
        the Aircraft from Airframe Manufacturer will be assigned to Seller and
        reassigned to the Owner Trustee upon and subject to the terms and conditions
        set
        forth in the Purchase Agreement, the Initial Purchase Agreement Assignment
        and
        the Purchase Agreement Assignment.]2

       

      C.
         In
        order
        to effectuate the long-term financing of the Aircraft, the parties hereto
        intend
        that (i) the Owner Trustee issue, on a non-recourse basis, pursuant to the
        Trust Indenture the Equipment Notes to the Pass Through Trustee, [(ii) the
        Existing Lease be terminated and

       

      
        

      

    

    
      1. 
        Delete for New Aircraft.

       

      2. 
        Insert for New Aircraft.

       

      
        
          
          

        

        
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            1

          
            

          

        

        
          Table
            of Contents

        

      

       

      replaced
        with the Lease, and the Aircraft continue to be leased to Lessee and subleased
        to Express]3 [(ii)
        the
        Owner Trustee will purchase the Aircraft from the Airframe Manufacturer
        utilizing the Commitments and lease it to Lessee pursuant to the Lease and
        the
        Lessee will sublease the Aircraft to Express]4 and
        (iii)
        Owner Trustee grant a security interest to Mortgagee in the Aircraft and
        the
        Lease for the benefit of the Note Holders.

       

      D.
         The
        parties hereto wish to set forth in this Agreement the terms and conditions
        upon
        and subject to which the aforesaid transactions shall be effected.

       

      NOW,
        THEREFORE, in consideration of the premises and the mutual agreements contained
        herein and for other good and valuable consideration, the receipt and
        sufficiency of which are hereby acknowledged, the parties hereto agree as
        follows:

       

      SECTION
        1.  DEFINITIONS
        AND CONSTRUCTION

       

      Capitalized
        terms used but not defined herein shall have the respective meanings set
        forth
        or incorporated by reference, and shall be construed and interpreted in the
        manner described, in Annex A. 

       

      [SECTION
        2.  ISSUANCE
        OF EQUIPMENT NOTES; TERMINATION OF OBLIGATION TO
        PARTICIPATE

       

      2.1   Issuance
        of Equipment Notes

       

      Subject
        to the terms and conditions of this Agreement, on the Closing Date, the Pass
        Through Trustee shall make a non-recourse secured loan to Owner Trustee to
        finance, in part, the Owner Trustee’s payment of Lessor’s Cost in the amount in
        Dollars equal to the Pass Through Trustee’s PTT Percentage multiplied by
        Lessor’s Cost, such loan to be evidenced by one or more Equipment Notes, dated
        the Closing Date, issued to the Subordination Agent as the registered holder
        on
        behalf of the Pass Through Trustee for the Pass Through Trust by Owner Trustee
        in accordance with this Agreement and the Trust Indenture, in an aggregate
        principal amount equal to the Commitment of the Pass Through
        Trustee.

       

      2.2  
Termination
        of Obligation to Participate

       

      Notwithstanding
        any other provision of this Agreement, if the Closing does not occur on or
        before the Commitment Termination Date, the Commitment of the Loan Participant
        and its obligation to participate in the payment of Lessor’s Cost shall expire
        and be of no further force and effect; provided,
        that
        the liability of the Loan Participant that has defaulted in the payment of
        its
        Commitment shall not be released.]5

       

      
        
          

        

      

      3. 
        Delete for New Aircraft.

       

      4. 
        Insert for New Aircraft.

       

      5. 
        Delete for New Aircraft.

      
        
          
          

        

        
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            2

          
            

          

        

        
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            of Contents

        

      

       

      [SECTION
        3.  TERMINATION
        OF EXISTING FINANCING AGREEMENTS; COMMITMENT TO LEASE
        AIRCRAFT

       

      3.1  
Termination
        of Existing Financing Agreements

       

      (a) The
        Existing Lease and Existing Sublease for the Aircraft shall be terminated
        in
        order to be replaced by the Lease and the Express Sublease, and each of Lessor
        and Lessee shall take such action to evidence such termination as Owner Trustee
        or Mortgagee shall reasonably request, including execution and delivery of
        a
        termination agreement for the Existing Lease and Existing Sublease in form
        and
        substance reasonably acceptable to Owner Trustee and satisfactory for filing
        with the FAA, and UCC-3 termination statements with respect to the termination
        of the Existing Lease and Existing Sublease.

       

      (b) The
        Existing Participation Agreement shall be terminated, effective as of the
        Closing, and the parties thereto shall have no further obligation thereunder
        except for Sections 7, 10 and 11 thereof and for any breach of such Agreement
        arising prior to the Closing.

       

      (c) Lessor
        shall refund to Lessee “Basic Rent” (as defined in the Existing Lease) paid in
        advance by Lessee attributable to periods on and after the Closing Date
        determined by multiplying such Basic Rent by a fraction, the numerator of
        which
        shall be the number of days remaining in the month in which the Closing Date
        occurs (from and including the Closing Date) and the denominator of which
        shall
        be the total number of days in such month.

       

      (d) Airframe
        Manufacturer shall pay and discharge all applicable sales, use or similar
        Taxes,
        duties or fees assessed or levied by any federal, state, provincial or local
        taxing authority as a result of the replacement of the existing financing
        agreements with the Operative Agreements and the Express Sublease or issuance
        of
        the Equipment Notes contemplated by this Agreement. Owner Trustee and Lessee
        will cooperate in order to minimize Taxes applicable to the termination of
        the
        existing financing agreements or issuance of the Equipment Notes contemplated
        by
        this Agreement.

       

      3.2  
Commitment
        to Lease

       

      Subject
        to the terms and conditions of this Agreement, concurrently with the issuance
        of
        the Equipment Notes, Owner Trustee shall continue the lease of the Aircraft
        to
        Lessee, and Lessee shall continue the lease of the Aircraft from Owner Trustee,
        under the Lease.]6

       

      [SECTION
        4.  CLOSING;
        PROCEDURE FOR PAYMENT; POSTPONEMENT OF SCHEDULED CLOSING
        DATE

       

      4.1  
Closing

       

      The
        Closing shall occur at the offices of Hughes Hubbard & Reed LLP, One
        Battery Park Plaza, New York, New York 10004, or such other place as the
        parties
        shall agree, at the time specified pursuant to notice given in accordance
        with
        Section 1 of the Note Purchase Agreement.

       

      
        
          

        

      

      6. 
        Delete for New Aircraft.

      
        
          
          

        

        
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            3

          
            

          

        

        
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      4.2  
Payment
        of Proceeds

       

      (a) The
        Loan
        Participant agrees, subject to the terms and conditions of this Agreement,
        to
        make the Dollar amount of its Commitment available, by wire transfer of
        immediately available funds to the account of WTC, ABA No. 031100092, Account
        No. [           ],
        reference Continental Lease [TN], at or before 12:00 Noon, New York City
        time,
        on the Scheduled Closing Date. All such funds made available by the Loan
        Participant to WTC shall, until payment thereof to Owner Trustee as provided
        in
        Section 4.2(c) or return thereof to the Loan Participant as provided in
        Section 4.3, be held by WTC in trust for the benefit of the Loan
        Participant, as the sole and exclusive property of the Loan Participant and
        not
        as part of the Trust Estate or the Trust Indenture Estate. 

       

      (b) Subject
        to the satisfaction or waiver by the applicable party of the conditions
        precedent set forth in Section 5, and simultaneously with the receipt by
        the parties hereto of all amounts to be paid to them on the Closing Date
        pursuant to this Section 4.2, Owner Trustee shall:

       

      (i) execute
        the Trust Indenture and the initial Trust Indenture Supplement and issue
        the
        Equipment Notes to the Subordination Agent in accordance with
        Section 2.1(b);

       

      (ii) lease
        the
        Aircraft to Lessee pursuant to the Lease; and

       

      (iii) take
        such
        other action as may be required to be taken by the Owner Trustee on the Closing
        Date by the terms of any Operative Agreement.

       

      (c) Subject
        to the satisfaction or waiver by the applicable party of the conditions
        precedent set forth in Section 5, WTC shall pay to the Owner Trustee the
        amounts
        received from the Loan Participants pursuant to Section 4.2(a).

       

      4.3  
Postponement
        of Scheduled Closing Date

       

      If
        for
        any reason whatsoever the Closing is not consummated on the Scheduled Closing
        Date, Airframe Manufacturer may by telephonic notice, given by 5:00 p.m.,
        New
        York City time (such telephonic notice to be promptly confirmed in writing
        by
        personal delivery or facsimile), on the Scheduled Closing Date to Lessee,
        the
        Loan Participant, Owner Trustee and Mortgagee, designate a Delayed Closing
        Date,
        in which case any funds made available by the Loan Participant shall be returned
        on such Scheduled Closing Date and the Loan Participant shall comply with
        its
        obligations under Section 2.02(b) of the Trust Supplement.]7

       

      
        
          

        

      

      7. 
        Delete for New Aircraft.

       

      
        
          
          

        

        
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      [SECTION
        2.   PARTICIPATION
        IN LESSOR’S COST; ISSUANCE OF EQUIPMENT NOTES; TERMINATION OF OBLIGATION
        TO

                       
         PARTICIPATE

       

      2.1  
Participation
        in Lessor’s Cost

       

      Subject
        to the terms and conditions of this Agreement, on the Closing Date, Owner
        Participant and the Pass Through Trustee shall participate in the payment
        of
        Lessor’s Cost as follows:

       

      (a) Owner
        Participant shall participate in the payment of Lessor’s Cost for the Aircraft
        by making an equity investment in the beneficial ownership of the Aircraft
        in
        the amount in Dollars equal to Owner Participant’s Percentage multiplied by
        Lessor’s Cost; and

       

      (b) The
        Pass
        Through Trustee shall make a non-recourse secured loan to Owner Trustee to
        finance, in part, the Owner Trustee’s payment of Lessor’s Cost in the amount in
        Dollars equal to the Pass Through Trustee’s PTT Percentage multiplied by
        Lessor’s Cost, such loan to be evidenced by one or more Equipment Notes, dated
        the Closing Date, issued to the Subordination Agent as the registered holder
        on
        behalf of each Pass Through Trustee for the Pass Through Trust by Owner Trustee
        in accordance with this Agreement and the Trust Indenture, in an aggregate
        principal amount equal to the Commitment of the Pass Through
        Trustee.

       

      2.2  
Nature
        of Obligations of Participants

       

      The
        obligations hereunder of each Participant are several, and not joint, and
        a
        Participant shall have no obligation to make available to Owner Trustee any
        portion of any amount not paid hereunder by any other Participant. The failure
        by either Participant to perform its obligations hereunder shall not affect
        the
        obligations of Lessee toward the other Participant, except to the extent
        provided in Section 5.4.

       

      2.3  
Termination
        of Obligation to Participate

       

      Notwithstanding
        any other provision of this Agreement, if the Closing does not occur on or
        before the Commitment Termination Date, the Commitment of each Participant
        and
        its obligation to participate in the payment of Lessor’s Cost shall expire and
        be of no further force and effect; provided, that the liability of any
        Participant that has defaulted in the payment of its Commitment shall not
        be
        released.]8

       

      [SECTION
        3.  COMMITMENT
        TO LEASE AIRCRAFT

       

      Subject
        to the terms and conditions of this Agreement, concurrently with the issuance
        of
        the Equipment Notes, Owner Trustee shall purchase and accept delivery of
        the
        Aircraft under and pursuant to the Purchase Agreement and the Purchase Agreement
        Assignment, and 

       

      
        

      

    

    
      8. 
        Insert for New Aircraft.

      
        
          
          

        

        
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      thereupon
        Owner Trustee shall lease the Aircraft to Lessee, and Lessee shall lease
        the
        Aircraft from Owner Trustee, under the Lease.]9

       

      [SECTION
        4.  PROCEDURE
        FOR PARTICIPATION IN PAYMENT OF LESSOR’S COST; POSTPONEMENT OF SCHEDULED
        DELIVERY DATE

       

      4.1  
Closing

       

      The
        Closing shall occur at the offices of Hughes Hubbard & Reed LLP, One Battery
        Park Plaza, New York, New York 10004, or such other place as the parties
        shall
        agree at the time specified pursuant to notice given in accordance with Section
        1 of the Note Purchase Agreement.

       

      4.2  
Payment
        of Lessor’s Cost

       

      (a) Each
        Participant agrees, subject to the terms and conditions of this Agreement,
        to
        make the Dollar amount of its respective Commitment available, by wire transfer
        of immediately available funds to the account of WTC, ABA No. 031100092,
        Account
        No. [               ],
        reference Continental Lease [TN], at or before 12:00 Noon, New York City
        time,
        on the Scheduled Closing Date. All such funds made available by each Participant
        to WTC shall, until payment thereof to Airframe Manufacturer as provided
        in
        Section 4.2(b)(ii) or return thereof to the respective Participant as provided
        in Section 4.3.2, be held by WTC in trust for the benefit of the respective
        Participant, as the sole and exclusive property of the respective Participant
        and not as part of the Trust Estate or the Trust Indenture Estate. 

       

      (b) Subject
        to the satisfaction or waiver by the applicable party of the conditions
        precedent set forth in Section 5, and simultaneously with the receipt by
        the
        parties hereto of all amounts to be paid to them on the Closing Date pursuant
        to
        this Section 4.2, Owner Trustee shall:

       

      (i) purchase,
        take title to, and accept delivery of, the Aircraft;

       

      (ii) in
        consideration of the transfer of title to the Aircraft to Owner Trustee,
        direct
        WTC to pay Lessor’s Cost, from the funds made available to WTC hereunder by the
        Participants, to Airframe Manufacturer, by wire transfer of immediately
        available funds to Airframe Manufacturer’s account set forth in Schedule
        1;

       

      (iii) execute
        an application for registration of the Aircraft with the FAA and Lease
        Supplement No. 1, in each case with respect to the Aircraft;

       

      (iv) execute
        the Trust Indenture and the initial Trust Indenture Supplement and issue
        the
        Equipment Notes to the Subordination Agent in accordance with Section
        2.1(b);

       

      (v) lease
        the
        Aircraft to Lessee, pursuant to the Lease; and

       

      
        
          

        

      

      9. 
        Insert for New Aircraft.

      
        
          
          

        

        
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      (vi) take
        such
        other action as may be required to be taken by the Owner Trustee on the Closing
        Date by the terms of any Operative Agreement.

       

      4.3  
Postponement
        of Scheduled Closing Date

       

      4.3.1  
        Postponement

       

      If
        for
        any reason whatsoever the Closing is not consummated on the Scheduled Closing
        Date, Airframe Manufacturer may, by telephonic notice, given by 5:00 p.m.,
        New
        York City time (such telephonic notice to be promptly confirmed in writing
        by
        personal delivery or facsimile), on the Scheduled Closing Date to Lessee,
        each
        Participant, Owner Trustee and Mortgagee, designate a Delayed Closing Date,
        in
        which case the Owner Participant will make its funds available to WTC on
        the
        Delayed Closing Date in accordance with Section 4.2(a), and the Loan
        Participant shall comply with its obligations under Section [2.02(b)] of
        the
        Trust Supplement.

       

      4.3.2  
        Return
        of Funds

       

      WTC
        shall
        promptly return to each Participant that makes funds available to it in
        accordance with Section 4.2(a) such funds, if the Closing fails to occur
        on the
        Scheduled Delivery Date.]10

       

      SECTION
        5.  CONDITIONS
        PRECEDENT

       

      5.1  
Conditions
        Precedent to Obligations of Participants

       

      The
        obligation of [each]11
        [the
        Loan]12 Participant
        to make the Dollar amount of its Commitment available for payment as directed
        by
        the Owner Trustee on the Closing Date and of each Participant to take the
        other
        actions required by this Agreement to be taken by it at the Closing is subject
        to satisfaction or waiver by each such Participant, at or prior to the Closing,
        of the conditions precedent set forth below in this Section 5.1;
provided,
        that it
        shall not be a condition precedent to the obligation of any Participant that
        any
        document be produced or action taken that is to be produced or taken by such
        Participant or by a Person within such Participant’s control; provided,
        further,
        that
        Section 5.1.2(iii) [and (xv)]13
        shall
        not be conditions precedent to the obligation of Loan Participant, and
        Section 5.1.5 shall not be a condition precedent to the obligation of Owner
        Participant.

       

      
        

      

      10.
         Insert for New Aircraft.

       

      11. 
        Insert for New Aircraft.

       

      12. 
        Delete for New Aircraft.

       

      13. 
        Delete for New Aircraft.

      
        
          
          

        

        
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      5.1.1  
        Notice

       

      Such
        Participant shall have received the notice described in Section 4.1 or, in
        the case of a Delayed Closing Date, 4.3, when and as required thereby, or
        shall
        have waived such notice.

       

      5.1.2  
        Delivery
        of Documents

       

      Such
        Participant shall, except as noted below, have received executed counterparts
        of
        the following agreements, instruments, certificates or documents, and each
        of
        such counterparts (a) shall have been duly authorized, executed and
        delivered by the respective party or parties thereto, (b) shall be
        reasonably satisfactory in form and substance to such Participant and
        (c) shall be in full force and effect:

       

      (i) the
        Lease; provided,
        that
        only Mortgagee shall receive the sole executed chattel paper original
        thereof;

       

      (ii) Lease
        Supplement No. 1; provided,
        that
        only Mortgagee shall receive the sole executed chattel paper original
        thereof;

       

      (iii) the
        Tax
        Indemnity Agreement; provided,
        that
        only Owner Participant and Lessee shall receive copies of the Tax Indemnity
        Agreement;

       

      (iv) the
        Trust
        Agreement;

       

      (v) the
        Trust
        Indenture;

       

      (vi) the
        initial Trust Indenture Supplement;

       

      (vii) [the
        Initial Purchase Agreement Assignment and]14 the
        Purchase Agreement Assignment;

       

      (viii) the
        Consent and Agreement;

       

      (ix) the
        Equipment Notes dated the Closing Date; provided,
        that
        only the Subordination Agent shall receive the authenticated Equipment
        Notes;

       

      (x) an
        excerpted copy of the Purchase Agreement to the extent relating to Airframe
        Manufacturer’s warranties or related obligations or any right in the Purchase
        Agreement assigned to Owner Trustee pursuant to the Purchase Agreement
        Assignment; provided,
        that
        only Owner Trustee and Mortgagee shall receive copies of such agreements
        (copies
        of which may be inspected by Participants and their respective special counsel
        on the Closing Date, but after the Closing Date such copies shall be retained
        by
        Owner Trustee and Mortgagee and may be inspected and reviewed by Owner
        Participant or Loan Participant or their respective counsel if and only if
        there
        shall have occurred and be continuing a Lease Default or Lease Event of
        Default);

       

      
        
          

        

      

      14. 
        Insert for New Aircraft.

      
        
          
          

        

        
          
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      [(xi) the
        OP
        Guaranty;]15

       

      (xii) the
        Express Sublease;

       

      (xiii) the
        broker’s report and insurance certificates required by Section 11 of the
        Lease;

       

      [(xiv) termination
        agreements with respect to the Existing Lease and the Existing Sublease and,
        in
        the case of Owner Participant and Lessee, the Existing Participation Agreement
        and the “Tax Indemnity Agreement” as defined in the Existing Lease;]16

       

      [(xv) the
        Satisfaction and Discharge Agreement, dated as of the date of the Participation
        Agreement, among the Airframe Manufacturer, Seller, Owner Participant and
        Owner
        Trustee;]17

       

      [(xiv) the
        Bills
        of Sale;]18

       

      [(xv) an
        invoice from Seller to Owner Trustee in respect of the Aircraft;]19

       

      (xvi) (A) a
        copy of the Certificate of Incorporation and By-Laws of Lessee and resolutions
        of the board of directors of Lessee and/or the executive committee thereof,
        in
        each case certified as of the Closing Date, by the Secretary or an Assistant
        Secretary of Lessee, duly authorizing the execution, delivery and performance
        by
        Lessee of the Lessee Operative Agreements required to be executed and delivered
        by Lessee on or prior to the Closing Date in accordance with the provisions
        hereof and thereof; (B) an incumbency certificate of Lessee, Airframe
        Manufacturer, Owner Participant, Wells Fargo and WTC as to the person or
        persons
        authorized to execute and deliver the relevant Operative Agreements on behalf
        of
        such party; and (C) a copy of the Certificate of Incorporation or Articles
        of Incorporation and By-Laws and general authorizing resolutions of the boards
        of directors (or executive committees) or other satisfactory evidence of
        authorization of Airframe Manufacturer, Owner Participant, Wells Fargo and
        WTC,
        certified as of the Closing Date by the Secretary or an Assistant or Attesting
        Secretary of Airframe Manufacturer, Owner Participant, Wells Fargo and WTC,
        respectively, which authorize the execution, delivery and performance by
        Airframe Manufacturer, Owner Participant, Wells Fargo and WTC, respectively,
        of
        each of the Operative Agreements to which it is a party, together with such
        other documents and evidence with respect to it as Lessee or any Participant
        may
        reasonably request in order to establish the consummation of the

       

       

      
        
          

        

      

      15. 
        Include if the OP is an Affiliate of Airframe Manufacturer.

       

      16. 
        Delete for New Aircraft.

       

      17. 
        Delete for New Aircraft.

       

      18. 
        Insert for New Aircraft.

       

      19. 
        Insert for New Aircraft.

      
        
          
          

        

        
          
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      transactions
        contemplated by this Agreement and the taking of all corporate proceedings
        in
        connection therewith;

       

      (xvii) an
        Officer’s Certificate of Lessee, dated as of the Closing Date, stating that its
        representations and warranties set forth in this Agreement are true and correct
        as of the Closing Date (or, to the extent that any such representation and
        warranty expressly relates to an earlier date, true and correct as of such
        earlier date);

       

      (xviii) an
        Officer’s Certificate of Wells Fargo, dated as of the Closing Date, stating that
        its representations and warranties, in its individual capacity and as Owner
        Trustee, set forth in this Agreement are true and correct as of the Closing
        Date
        (or, to the extent that any such representation and warranty expressly relates
        to an earlier date, true and correct as of such earlier date);

       

      (xix) an
        Officer’s Certificate of Owner Participant, dated as of the Closing Date,
        stating that its representations and warranties set forth in this Agreement
        are
        true and correct as of the Closing Date (or, to the extent that any such
        representation and warranty expressly relates to an earlier date, true and
        correct as of such earlier date);

       

      (xx) an
        Officer’s Certificate of WTC, dated as of the Closing Date, stating that its
        representations and warranties in its individual capacity or as Mortgagee,
        Pass
        Through Trustee or Subordination Agent, as the case may be, set forth in
        this
        Agreement are true and correct as of the Closing Date (or, to the extent
        that
        any such representation and warranty expressly relates to an earlier date,
        true
        and correct as of such earlier date);

       

      (xxi) an
        Officer’s Certificate of Airframe Manufacturer, dated as of the Closing Date,
        stating that its representations and warranties set forth in this Agreement
        are
        true and correct as of the Closing Date (or, to the extent that any such
        representation and warranty expressly relates to an earlier date, true and
        correct as of such earlier date); 

       

      [(xxii) an
        appointment of authorized representatives by Owner Trustee, and an acceptance
        thereof by such representatives;]20

       

      (xxiii) a
        copy of
        the application for registration of the Aircraft with the FAA in the name
        of
        Owner Trustee;

       

      (xxiv) the
        Financing Statements;

       

      (xxv) the
        following opinions of counsel, in each case dated the Closing Date:

       

      (A) an
        opinion of Hughes Hubbard & Reed LLP, special counsel to Lessee,
        substantially in the form of Exhibit A;

       

      (B) an
        opinion of Lessee’s Legal Department, substantially in the form of
        Exhibit B;

       

      
        

      

      20. 
        Insert for New Lease.

      
        
          
          

        

        
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      (C) an
        opinion of (x) corporate counsel to Airframe Manufacturer, substantially
        in the
        form of Exhibit C-1, and (y) Katten Muchin Rosenman, special counsel
        to Airframe Manufacturer, substantially in the form of
        Exhibit C-2;

       

      (D) an
        opinion of Ray, Quinney & Nebeker, special counsel to Owner Trustee,
        substantially in the form of Exhibit D;

       

      (E) an
        opinion of Richards, Layton & Finger, special counsel to Mortgagee and
        Loan Participant, substantially in the form of Exhibit E;

       

      (F) an
        opinion of special counsel to Owner Participant, substantially in the form
        of
        Exhibit F;

       

      (G) an
        opinion of Lytle Soulé; & Curlee, special counsel in Oklahoma City,
        Oklahoma, substantially in the form of Exhibit G;

       

      (H) an
        opinion of Walkers, special counsel to Seller, substantially in the form
        of
        Exhibit H;

       

      (xxvi) a
        copy of
        a current, valid Standard Certificate of Airworthiness for the Aircraft duly
        issued by the FAA;

       

      (xxvii) the
        Participants and their respective counsel shall have received copies of such
        documents and papers as such Participants may reasonably request, other than
        (A) in the case of Loan Participant, copies of the Purchase Agreement,
        provided that special counsel for Loan Participant may inspect the Purchase
        Agreement in connection with the transactions contemplated hereby or as a
        basis
        for such counsel’s closing opinion, and (B) in the case of parties other
        than Owner Participant and its special counsel, the Tax Indemnity
        Agreement.

       

      5.1.3  
        Other
        Commitments

       

      [Each
        other]21
        [The
        Loan]22 Participant
        shall have made available the Dollar amount of its Commitment in accordance
        with
        Section 4.

       

      5.1.4  
        Violation
        of Law

       

      No
        change
        shall have occurred after the date of this Agreement in any applicable Law
        that
        makes it a violation of Law for (a) Lessee, any Participant, Subordination
        Agent, Owner Trustee or Mortgagee to execute, deliver and perform the Operative
        Agreements to which any of them is a party or (b) [any]23 
        [the
        Loan]24 Participant
        to make the Dollar amount of its

       

      
        
          

        

      

      21. 
        Insert for New Aircraft.

       

      22. 
        Delete for New Aircraft.

       

      23. 
        Insert for New Aircraft.

      
        
          
          

        

        
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      Commitment
        available or to acquire an Equipment Note or to realize the benefits of the
        security afforded by the Trust Indenture.

       

      5.1.5  
        Perfected
        Security Interest

       

      On
        the
        Closing Date, after giving effect to the filing of the FAA Filed Documents
        and
        the Financing Statements, Mortgagee shall have received a duly perfected
        first
        priority security interest in all of Owner Trustee’s right, title and interest
        in the Aircraft and the Lease, subject only to Permitted Liens.

       

      5.1.6  
        Representations,
        Warranties and Covenants

       

      The
        representations and warranties of each other party to this Agreement made,
        in
        each case, in this Agreement and in any other Operative Agreement to which
        it is
        a party, shall be true and accurate in all material respects as of the Closing
        Date (unless any such representation and warranty shall have been made with
        reference to a specified date, in which case such representation and warranty
        shall be true and accurate as of such specified date) and each other party
        to
        this Agreement shall have performed and observed, in all material respects,
        all
        of its covenants, obligations and agreements in this Agreement and in any
        other
        Operative Agreement to which it is a party to be observed or performed by
        it as
        of the Closing Date.

       

      5.1.7  
        No
        Event of Default

       

      On
        the
        Closing Date, no event shall have occurred and be continuing, or would result
        from the mortgage or lease of the Aircraft, which constitutes a Lease Default
        or
        Lease Event of Default, or an Indenture Default or Indenture Event of
        Default.

       

      5.1.8  
        No
        Event of Loss

       

      On
        the
        Closing Date, no Event of Loss with respect to the Airframe or any Engine
        shall
        have occurred and no circumstance, condition, act or event that, with the
        giving
        of notice or lapse of time or both, would give rise to or constitute an Event
        of
        Loss with respect to the Airframe or any Engine shall have
        occurred.

       

      5.1.9  
        Title

       

      Owner
        Trustee shall have good title to the Aircraft [(subject to filing and
        recordation of the FAA Bill of Sale with the FAA)]25,
        free
        and clear of Liens, except (a) the rights of Lessee under the Lease and
        Lease Supplement No. 1, (b) the Lien created by the Trust Indenture and the
        initial Trust Indenture Supplement and (c) other Permitted
        Liens.

       

      
         

        
          
            

          

        

      

      24. 
        Delete for New Aircraft.

       

      25. 
        Insert for New Aircraft.

       

       

      
        
          
          

        

        
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      5.1.10  
        Certification

       

      The
        Aircraft shall have been duly certificated by the FAA as to type, and an
        export
        certificate of airworthiness shall have been issued by the Brazilian aviation
        authority.

       

      5.1.11  
        Section
        1110

       

      Owner
        Trustee, as lessor under the Lease (and Mortgagee, as assignee of Owner Trustee
        under the Trust Indenture), shall be entitled to the benefits of
        Section 1110 (as currently in effect) with respect to the right to take
        possession of the Airframe and Engines and to enforce any of its other rights
        or
        remedies as provided in the Lease in the event of a case under Chapter 11
        of the Bankruptcy Code in which Lessee is a debtor.

       

      5.1.12  
        Filing

       

      On
        the
        Closing Date (a) the FAA Filed Documents shall have been duly filed for
        recordation (or shall be in the process of being so duly filed for recordation)
        with the FAA in accordance with the Act and (b) each Financing Statement
        shall have been duly filed (or shall be in the process of being so duly filed)
        in the appropriate jurisdiction.

       

      5.1.13  
        No
        Proceedings

       

      No
        action
        or proceeding shall have been instituted, nor shall any action be threatened
        in
        writing, before any Government Entity, nor shall any order, judgment or decree
        have been issued or proposed to be issued by any Government Entity, to set
        aside, restrain, enjoin or prevent the completion and consummation of this
        Agreement or any other Operative Agreement or the transactions contemplated
        hereby or thereby.

       

      5.1.14  
        Governmental
        Action

       

      All
        appropriate action required to have been taken prior to the Closing Date
        by the
        FAA, or any governmental or political agency, subdivision or instrumentality
        of
        the United States, in connection with the transactions contemplated by this
        Agreement shall have been taken, and all orders, permits, waivers,
        authorizations, exemptions and approvals of such entities required to be
        in
        effect on the Closing Date in connection with the transactions contemplated
        by
        this Agreement shall have been issued.

       

      5.2  
Conditions
        Precedent to Obligations of Owner Trustee

       

      The
        obligation of Owner Trustee to execute and deliver the Equipment Notes on
        the
        Closing Date is subject to satisfaction or waiver by Owner Trustee, at or
        prior
        to the Closing, of the conditions precedent set forth below in this Section
        5.2.

       

      5.2.1  
        Notice

       

      Owner
        Trustee shall have received the notice described in Section 4.1 or, in the
        case of a Delayed Closing Date, 4.3, when and as required thereby, or shall
        have
        waived such notice.

       

       

      
        
          
          

        

        
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      5.2.2  
        Documents

       

      Executed
        originals of the agreements, instruments, certificates or documents described
        in
        Section 5.1.2 shall have been received by Owner Trustee, except as
        specifically provided therein, unless the failure to receive any such agreement,
        instrument, certificate or document is the result of any action or inaction
        by
        Owner Trustee.

       

      5.2.3  
        Other
        Conditions Precedent

       

      Each
        of
        the conditions set forth in Sections 5.1.4, 5.1.6, 5.1.7 and 5.1.11 shall
        have been satisfied unless the failure of any such condition to be satisfied
        is
        the result of any action or inaction by Owner Trustee.

       

      5.3  
Conditions
        Precedent to Obligations of Mortgagee

       

      The
        obligation of Mortgagee to authenticate the Equipment Notes on the Closing
        Date
        is subject to the satisfaction or waiver by Mortgagee, at or prior to the
        Closing, of the conditions precedent set forth below in this Section
        5.3.

       

      5.3.1  
        Notice

       

      Mortgagee
        shall have received the notice described in Section 4.1 or, in the case of
        a Delayed Closing Date, 4.3, when and as required thereby, or shall have
        waived
        such notice.

       

      5.3.2  
        Documents

       

      Executed
        originals of the agreements, instruments, certificates or documents described
        in
        Section 5.1.2 shall have been received by Mortgagee, except as specifically
        provided therein, unless the failure to receive any such agreement, instrument,
        certificate or document is the result of any action or inaction by
        Mortgagee.

       

      5.3.3  
        Other
        Conditions Precedent

       

      Each
        of
        the conditions set forth in Sections 5.1.4, 5.1.6, 5.1.7 and 5.1.11 shall
        have been satisfied unless the failure of any such condition to be satisfied
        is
        the result of any action or inaction by Mortgagee.

       

      5.4  
Conditions
        Precedent to Obligations of Lessee

       

      The
        obligation of Lessee to lease the Aircraft on the Closing Date and to take
        the
        other actions required by this Agreement to be taken by it at the Closing
        is
        subject to the satisfaction or waiver by Lessee, at or prior to the Closing,
        of
        the conditions precedent set forth below in this Section 5.4.

       

      5.4.1  
        Documents

       

      Executed
        originals of the agreements, instruments, certificates or documents described
        in
        Section 5.1.2 shall have been received by Lessee, except as specifically
        provided therein, and 

       

       

       

      
        
          
          

        

        
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      shall
        be
        satisfactory to Lessee, unless the failure to receive any such agreement,
        instrument, certificate or document is the result of any action or inaction
        by
        Lessee.

       

      5.4.2  
        Sales
        Tax

       

      Lessee
        shall be satisfied that no sales, use, value added, goods and services or
        like
        tax, and no stamp tax duty, is payable with respect to the transactions to
        occur
        at the Closing pursuant to this Agreement to the extent that Lessee has
        liability therefor under Section 9.3.

       

      5.4.3  
        Other
        Conditions Precedent

       

      Each
        of
        the conditions set forth in Sections 5.1.3, 5.1.4, 5.1.6, 5.1.7 (as to
        Indenture Defaults or Indenture Events of Default not constituting Lease
        Defaults or Lease Events of Default, respectively), 5.1.8, 5.1.9, 5.1.10,
        5.1.11, 5.1.12, 5.1.13 and 5.1.14 shall have been satisfied or waived by
        Lessee,
        unless the failure of any such condition to be satisfied is the result of
        any
        action or inaction by Lessee.

       

      5.5  
Post-Registration
        Opinion

       

      Promptly
        upon the registration of the Aircraft and the recordation of the FAA Filed
        Documents pursuant to the Act, Airframe Manufacturer will cause Lytle Soulé;
& Curlee, special counsel in Oklahoma City, Oklahoma, to deliver to Lessee,
        each Participant, Owner Trustee and Mortgagee a favorable opinion or opinions
        addressed to each of them with respect to such registration and
        recordation.

       

      SECTION
        6.  REPRESENTATIONS
        AND WARRANTIES

       

      6.1  
Lessee’s
        Representations and Warranties

       

      Lessee
        represents and warrants to each Participant, Airframe Manufacturer,
        Subordination Agent, Owner Trustee and Mortgagee that:

       

      6.1.1  
        Organization;
        Qualification

       

      Lessee
        is
        a corporation duly incorporated, validly existing and in good standing under
        the
        Laws of the State of Delaware and has the corporate power and authority to
        conduct the business in which it is currently engaged and to own or hold
        under
        lease its properties and to enter into and perform its obligations under
        the
        Lessee Operative Agreements. Lessee is duly qualified to do business as a
        foreign corporation in good standing in each jurisdiction in which the nature
        and extent of the business conducted by it, or the ownership of its properties,
        requires such qualification, except where the failure to be so qualified
        would
        not give rise to a Material Adverse Change to Lessee.

       

      6.1.2  
        Corporate
        Authorization

       

      Lessee
        has taken, or caused to be taken, all necessary corporate action (including,
        without limitation, the obtaining of any consent or approval of stockholders
        required by its Certificate of

       

       

      
        
          
          

        

        
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      Incorporation
        or By-Laws) to authorize the execution and delivery of each of the Lessee
        Operative Agreements, and the performance of its obligations
        thereunder.

       

      6.1.3  
        No
        Violation

       

      The
        execution and delivery by Lessee of the Lessee Operative Agreements, the
        performance by Lessee of its obligations thereunder and the consummation
        by
        Lessee on the Closing Date of the transactions contemplated thereby, do not
        and
        will not (a) violate any provision of the Certificate of Incorporation or
        By-Laws of Lessee, (b) violate any Law applicable to or binding on Lessee
        or (c) violate or constitute any default under (other than any violation or
        default that would not result in a Material Adverse Change to Lessee), or
        result
        in the creation of any Lien (other than as permitted under the Lease) upon
        the
        Aircraft under, any indenture, mortgage, chattel mortgage, deed of trust,
        conditional sales contract, lease, loan or other material agreement, instrument
        or document to which Lessee is a party or by which Lessee or any of its
        properties is bound.

       

      6.1.4  
        Approvals

       

      The
        execution and delivery by Lessee of the Lessee Operative Agreements, the
        performance by Lessee of its obligations thereunder and the consummation
        by
        Lessee on the Closing Date of the transactions contemplated thereby do not
        and
        will not require the consent or approval of, or the giving of notice to,
        or the
        registration with, or the recording or filing of any documents with, or the
        taking of any other action in respect of, (a) any trustee or other holder
        of any Debt of Lessee and (b) any Government Entity, other than the filing
        of (x) the FAA Filed Documents and the Financing Statements (and
        continuation statements periodically) and (y) filings, recordings, notices
        or other ministerial actions pursuant to any routine recording, contractual
        or
        regulatory requirements applicable to it.

       

      6.1.5  
        Valid
        and Binding Agreements

       

      The
        Lessee Operative Agreements have been duly authorized, executed and delivered
        by
        Lessee and, assuming the due authorization, execution and delivery thereof
        by
        the other party or parties thereto, constitute the legal, valid and binding
        obligations of Lessee and are enforceable against Lessee in accordance with
        the
        respective terms thereof, except as such enforceability may be limited by
        bankruptcy, insolvency, reorganization, receivership, moratorium and other
        similar Laws affecting the rights of creditors generally and general principles
        of equity, whether considered in a proceeding at law or in equity.

       

      6.1.6  
        Litigation

       

      Except
        as
        set forth in Lessee’s most recent Annual Report on Form 10-K, as amended,
        filed by Lessee with the SEC on or prior to the Closing Date, or in any
        Quarterly Report on Form 10-Q or Current Report on Form 8-K (or any
        amendment thereof) filed by Lessee with the SEC subsequent to such Form 10-K
        and
        on or prior to the Closing Date, no action, claim or proceeding is now pending
        or, to the Actual Knowledge of Lessee, threatened, against Lessee, before
        any
        court, governmental body, arbitration board, tribunal or administrative agency,
        which is reasonably likely to be determined adversely to Lessee and if
        determined adversely to Lessee would result in a Material Adverse
        Change.

       

       

      
        
          
          

        

        
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      6.1.7  
        Financial
        Condition

       

      The
        audited consolidated balance sheet of Lessee with respect to Lessee’s most
        recent fiscal year included in Lessee’s most recent Annual Report on
        Form 10-K, as amended, filed by Lessee with the SEC, and the related
        consolidated statements of operations and cash flows for the period then
        ended
        have been prepared in accordance with GAAP and fairly present in all material
        respects the financial condition of Lessee and its consolidated subsidiaries
        as
        of such date and the results of its operations and cash flows for such period,
        and since the date of such balance sheet, there has been no material adverse
        change in such financial condition or operations of Lessee, except for matters
        disclosed in (a) the financial statements referred to above or (b) any
        subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K (or
        any
        amendment thereof) filed by Lessee with the SEC on or prior to the date
        hereof.

       

      6.1.8  
        Registration
        and Recordation

       

      Except
        for (a) the registration of the Aircraft with the FAA pursuant to the Act
        in the name of Owner Trustee, (b) the filing for recordation (and
        recordation) of the FAA Filed Documents, (c) the filing of the Financing
        Statements (and continuation statements relating thereto at periodic intervals),
        (d) the taking of possession and retention by Mortgagee of the original
        counterparts of the Lease and Lease Supplement No. 1 and (e) the affixation
        of the nameplates referred to in Section 7.1.3 of the Lease, no further
        action, including any filing or recording of any document (including any
        financing statement in respect thereof under Article 9 of the UCC) is necessary
        in order to establish and perfect the right, title or interest of Owner Trustee,
        and the Mortgagee’s security interest, in the Aircraft and the Lease, as against
        Lessee and any other Person, in each case, in any applicable jurisdiction
        in the
        United States.

       

      6.1.9  
        Location

       

      Lessee’s
        location (as such term is used in Section 9-307 of the UCC) is
        Delaware.

       

      6.1.10  
        No
        Default

       

      No
        event
        which, if the Aircraft were subject to the Lease, constitutes a Lease Event
        of
        Default has occurred and is continuing.

       

      6.1.11  
        No
        Event of Loss

       

      No
        Event
        of Loss has occurred with respect to the Airframe or any Engine, and, to
        the
        Actual Knowledge of Lessee, no circumstance, condition, act or event has
        occurred that, with the giving of notice or lapse of time or both gives rise
        to
        or constitutes an Event of Loss with respect to the Airframe or any
        Engine.

       

      6.1.12  
        Compliance
        With Laws

       

      (a) Lessee
        is
        a Citizen of the United States and a U.S. Air Carrier.

       

      (b) Lessee
        holds all licenses, permits and franchises from the appropriate Government
        Entities necessary to authorize Lessee to lawfully engage in air transportation
        and to

       

       

      
        
          
          

        

        
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      carry
        on
        scheduled commercial passenger service as currently conducted, except where
        the
        failure to so hold any such license, permit or franchise would not give rise
        to
        a Material Adverse Change to Lessee.

       

      (c) Lessee
        is
        not an “investment company” or a company controlled by an “investment company”
within the meaning of the Investment Company Act of 1940, as
        amended.

       

      6.1.13  
        Securities
        Laws

       

      Neither
        Lessee nor any person authorized to act on its behalf has directly or indirectly
        offered any beneficial interest or Security relating to the ownership of
        the
        Aircraft or the Lease or any interest in the Trust Estate and Trust Agreement,
        or any of the Equipment Notes or any other interest in or Security under
        the
        Trust Indenture, for sale to, or solicited any offer to acquire any such
        interest or Security from, or has sold any such interest or Security to,
        any
        person in violation of the Securities Act.

       

      6.1.14  
        Broker’s
        Fees

       

      No
        Person
        acting on behalf of Lessee is or will be entitled to any broker’s fee,
        commission or finder’s fee in connection with the Transactions.

       

      6.1.15  
        Section
        1110

       

      Owner
        Trustee, as lessor under the Lease (and Mortgagee, as assignee under the
        Trust
        Indenture), is entitled to the benefits of Section 1110 (as currently in
        effect)
        with respect to the right to take possession of the Airframe and Engines
        and to
        enforce any of its other rights or remedies as provided in the Lease in the
        event of a case under Chapter 11 of the Bankruptcy Code in which Lessee is
        a
        debtor.

       

      6.2  
Owner
        Participant’s Representations and Warranties

       

      Owner
        Participant represents and warrants to Lessee, Loan Participant, Airframe
        Manufacturer, Subordination Agent, Owner Trustee and Mortgagee
        that:

       

      6.2.1  
        Organization,
        Etc.

       

      Owner
        Participant is a corporation duly incorporated, validly existing and in good
        standing under the Laws of the OP Jurisdiction and has the corporate power
        and
        authority to conduct the business in which it is currently engaged and to
        own or
        hold under lease its properties and to enter into, and perform its obligations
        under the Owner Participant Agreements.

       

      6.2.2  
        Corporate
        Authorization

       

      Owner
        Participant has taken, or caused to be taken, all necessary corporate action
        (including, without limitation, the obtaining of any consent or approval
        of
        stockholders required by its Certificate of Incorporation or By-Laws) to
        authorize the execution and delivery of each of the Owner Participant
        Agreements, and the performance of its obligations thereunder.

       

       

      
        
          
          

        

        
          
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      6.2.3  
        No
        Violation

       

      The
        execution and delivery by Owner Participant of the Owner Participant Agreements,
        the performance by Owner Participant of its obligations thereunder and the
        consummation by Owner Participant on the Closing Date of the transactions
        contemplated thereby, do not and will not (a) violate any provision of the
        Certificate of Incorporation or By-Laws of Owner Participant, (b) violate
        any Law applicable to or binding on Owner Participant or (c) violate or
        constitute any default under (other than any violation or default that would
        not
        result in a Material Adverse Change to Owner Participant), or result in the
        creation of any Lien (other than as provided for or otherwise permitted in
        the
        Operative Agreements) upon the Trust Estate under, any indenture, mortgage,
        chattel mortgage, deed of trust, conditional sales contract, lease, loan
        or
        other material agreement, instrument or document to which Owner Participant
        is a
        party or by which Owner Participant or any of its properties is
        bound.

       

      6.2.4  
        Approvals

       

      The
        execution and delivery by Owner Participant of the Owner Participant Agreements,
        the performance by Owner Participant of its obligations thereunder and the
        consummation by Owner Participant on the Closing Date of the transactions
        contemplated thereby do not and will not require the consent or approval
        of, or
        the giving of notice to, or the registration with, or the recording or filing
        of
        any documents with, or the taking of any other action in respect of,
        (a) any trustee or other holder of any Debt of Owner Participant and
        (b) any Government Entity, other than the filing of the FAA Filed Documents
        and the Financing Statements.

       

      6.2.5  
        Valid
        and Binding Agreements

       

      The
        Owner
        Participant Agreements have been duly authorized, executed and delivered
        by
        Owner Participant and, assuming the due authorization, execution and delivery
        by
        the other party or parties thereto, constitute the legal, valid and binding
        obligations of Owner Participant and are enforceable against Owner Participant
        in accordance with the respective terms thereof, except as such enforceability
        may be limited by bankruptcy, insolvency, reorganization, receivership,
        moratorium and other similar Laws affecting the rights of creditors generally
        and general principles of equity, whether considered in a proceeding at law
        or
        in equity.

       

      6.2.6  
        Citizenship

       

      On
        the
        Closing Date, Owner Participant is not a Citizen of the United States, but
        holds
        an interest in the Trust Estate such that the Aircraft can be registered
        in the
        United States (without giving consideration to Section 47.9 of the FAA
        Regulations or any other provision that could restrict Lessee’s use or operation
        of the Aircraft).

       

      6.2.7  
        No
        Liens

       

      On
        the
        Closing Date, there are no Lessor Liens attributable to Owner Participant
        in
        respect of all or any part of the Trust Estate.

       

       

      
        
          
          

        

        
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      6.2.8  
        Investment
        by Owner Participant

       

      Owner
        Participant’s beneficial interest in the Trust Estate has been acquired by it
        for its own account, for investment and not with a view to any resale or
        distribution thereof, except that, subject to the restrictions on transfer
        set
        forth in Section 10, the disposition by Owner Participant of its beneficial
        interest in the Trust Estate shall at all times be within its control.

       

      6.2.9  
        ERISA

       

      No
        part
        of the funds used by Owner Participant to acquire or hold its interests in
        the
        Trust Estate directly or indirectly constitutes assets of a Plan.

       

      6.2.10  
        Litigation

       

      There
        are
        no pending or, to the Actual Knowledge of Owner Participant, threatened actions
        or proceedings against Owner Participant before any court, governmental body,
        arbitration board, administrative agency or tribunal which, if determined
        adversely to Owner Participant, would materially adversely affect the ability
        of
        Owner Participant to perform its obligations under, or affect the validity
        or
        enforceability of, the Owner Participant Agreements.

       

      6.2.11  
        Securities
        Laws

       

      Neither
        Owner Participant nor any person Owner Participant has authorized to act
        on its
        behalf has directly or indirectly offered any beneficial interest in or Security
        relating to the ownership of the Aircraft or any interest in the Trust Estate,
        or any of the Equipment Notes or any other interest in or Security under
        the
        Trust Indenture for sale to, or solicited any offer to acquire any of the
        same
        from, any Person in violation of the registration provisions of the Securities
        Act or applicable state securities Laws.

       

      6.2.12  
        Broker’s
        Fees

       

      No
        Person
        acting on behalf of Owner Participant is or will be entitled to any broker’s
        fee, commission or finder’s fee in connection with the
        Transactions.

       

      6.3  
Wells
        Fargo’s Representations and Warranties

       

      Wells
        Fargo represents and warrants (in the case of Section 6.3.13, solely in its
        capacity as Owner Trustee) to Lessee, Owner Participant, Airframe Manufacturer,
        Loan Participants, Subordination Agent and Mortgagee that:

       

      6.3.1  
        Organization,
        Etc.

       

      Wells
        Fargo is a national banking association duly organized, validly existing
        and in
        good standing under the Laws of the United States, holding a valid certificate
        to do business as a national banking association with banking authority to
        execute and deliver, and perform its obligations under, the Owner Trustee
        Agreements. 

       

       

      
        
          
          

        

        
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      6.3.2  
        Corporate
        Authorization

       

      Wells
        Fargo has taken, or caused to be taken, all necessary corporate action
        (including, without limitation, the obtaining of any consent or approval
        of
        stockholders required by Law or by its Articles of Association or By-Laws)
        to
        authorize the execution and delivery by Wells Fargo, in its individual capacity
        and as Owner Trustee, of each of the Owner Trustee Agreements, and the
        performance of its obligations thereunder.

       

      6.3.3  
        No
        Violation

       

      The
        execution and delivery by Wells Fargo, in its individual capacity and as
        Owner
        Trustee, of the Owner Trustee Agreements, the performance by Wells Fargo,
        in its
        individual capacity and as Owner Trustee, of its obligations thereunder and
        the
        consummation by Wells Fargo in its individual capacity and as Owner Trustee
        on
        the Closing Date of the transactions contemplated thereby, do not and will
        not
        (a) violate any provision of the Articles of Association or By-Laws of
        Wells Fargo, (b) violate any Law of the State of Utah or federal banking
        Law applicable to or binding on Owner Trustee or Wells Fargo or (c) violate
        or constitute any default under (other than any violation or default that
        would
        not result in a Material Adverse Change to Wells Fargo, in its individual
        capacity or as Owner Trustee), or result in the creation of any Lien (other
        than
        the lien of the Trust Indenture) upon any property of Wells Fargo, in its
        individual capacity and as Owner Trustee, or any of its subsidiaries under,
        any
        indenture, mortgage, chattel mortgage, deed of trust, conditional sales
        contract, lease, loan or other material agreement, instrument or document
        to
        which Wells Fargo, in its individual capacity or as Owner Trustee, is a party
        or
        by which Wells Fargo, in its individual capacity or as Owner Trustee, or
        any of
        its properties is or may be bound or affected.

       

      6.3.4  
        Approvals

       

      The
        execution and delivery by Wells Fargo, in its individual capacity and as
        Owner
        Trustee, of the Owner Trustee Agreements, the performance by Wells Fargo,
        in its
        individual capacity and as Owner Trustee, of its obligations thereunder and
        the
        consummation by Wells Fargo, in its individual capacity and as Owner Trustee,
        on
        the Closing Date of the transactions contemplated thereby do not and will
        not
        require the consent, approval or authorization of, or the giving of notice
        to,
        or the registration with, or the recording or filing of any documents with,
        or
        the taking of any other action in respect of, (a) any trustee or other
        holder of any Debt of Wells Fargo or (b) any Government Entity governing
        banking and trust powers, other than the filing of the FAA Filed Documents
        and
        the Financing Statements.

       

      6.3.5  
        Valid
        and Binding Agreements

       

      The
        Owner
        Trustee Agreements have been duly authorized, executed and delivered by Wells
        Fargo, in its individual capacity or as Owner Trustee, as the case may be,
        and
        constitute the legal, valid and binding obligations of Wells Fargo, in its
        individual capacity and as Owner Trustee, and, assuming the due authorization,
        execution and delivery thereof by the other party or parties thereto, are
        enforceable against Wells Fargo, in its individual capacity and as Owner
        Trustee, in accordance with the respective terms thereof, except as such
        enforceability may be limited by bankruptcy, insolvency, reorganization,
        receivership, moratorium and other similar

       

       

      
        
          
          

        

        
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      Laws
        affecting the rights of creditors generally and general principles of equity,
        whether considered in a proceeding at law or in equity.

       

      6.3.6  
        Citizenship

       

      On
        the
        Closing Date, Wells Fargo is a Citizen of the United States.

       

      6.3.7  
        Location

       

      The
        Owner
        Trustee’s location (as such term is used in Section 9-307 of the UCC) is
        Utah.

       

      6.3.8  
        Title

       

      On
        the
        Delivery Date, Owner Trustee received whatever title to the Aircraft as was
        conveyed to it by Seller.

       

      6.3.9  
        No
        Liens; Financing Statements

       

      On
        the
        Closing Date, there are no Lessor Liens attributable to Wells Fargo or Owner
        Trustee in respect of all or any part of the Aircraft, Trust Estate or the
        Trust
        Indenture Estate. Except for the Financing Statements and the one or more
        UCC-1
        financing statements covering the Aircraft and filed for precautionary purposes
        by the Owner Trustee in connection with the delivery of the Aircraft to Lessee
        under the Existing Lease on the Delivery Date, it has not, either in its
        individual capacity or as Owner Trustee, executed any UCC financing statements
        relating to the Aircraft or the Lease.

       

      6.3.10  
        Litigation

       

      There
        are
        no pending or, to the Actual Knowledge of Wells Fargo, threatened actions
        or
        proceedings against Wells Fargo or Owner Trustee before any court, governmental
        body, arbitration board, administrative agency or tribunal which, if determined
        adversely to Wells Fargo or Owner Trustee, would materially adversely affect
        the
        ability of Wells Fargo or Owner Trustee to perform its obligations under,
        or
        affect the validity or enforceability of, the Owner Trustee
        Agreements.

       

      6.3.11  
        Securities
        Laws

       

      Neither
        Wells Fargo, nor any person authorized to act on its behalf, has directly
        or
        indirectly offered any beneficial interest or Security relating to the ownership
        of the Aircraft or any interest in the Trust Estate or any of the Equipment
        Notes or any other interest in or Security under the Trust Indenture for
        sale
        to, or solicited any offer to acquire any such interest or Security from,
        or has
        sold any such interest or Security to, any person other than the Participants,
        except for the offering and sale of the Pass Through Certificates.

       

      6.3.12  
        Expenses
        and Taxes

       

      There
        are
        no Expenses or Taxes that may be imposed on or asserted against the Trust,
        the
        Trust Estate or any part thereof or any interest therein, the Trust Indenture
        Estate, Lessee, Owner

       

      
        
          
          

        

        
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      Participant,
        Pass Through Trustee, Subordination Agent, Owner Trustee or Mortgagee (except
        as
        to Owner Trustee, Taxes imposed on the fees payable to Owner Trustee) under
        the
        laws of Utah in connection with the execution, delivery or performance of
        any
        Operative Agreement by Owner Trustee or in connection with the issuance of
        the
        Equipment Notes, which Expenses or Taxes would not have been imposed if Owner
        Trustee had not (x) had its principal place of business in,
        (y) performed (in its individual capacity or as Owner Trustee) any or all
        of its duties under the Operative Agreements in or (z) engaged in any
        activities unrelated to the transactions contemplated by the Operative
        Agreements in, the State of Utah.

       

      [6.3.13  
        Prior
        Activities

       

      Owner
        Trustee has not engaged in any activities except holding title to the Aircraft
        and leasing the Aircraft pursuant to the terms of the “Trust Agreement” (as
        defined in the Existing Lease) and the Existing Lease, respectively, and
        Owner
        Trustee has not incurred any debt or other financial obligation, except as
        expressly provided in the “Trust Agreement” (as defined in the Existing Lease)
        and the Existing Lease or such other debt that shall have been satisfied
        or
        discharged in full contemporaneously with the Closing.]26

       

      6.4  
WTC’s
        Representations and Warranties

       

      WTC
        represents and warrants (with respect to Section 6.4.10, solely in its
        capacity as Subordination Agent) to Lessee, Owner Participant, Airframe
        Manufacturer, and Owner Trustee that:

       

      6.4.1  
        Organization,
        Etc.

       

      WTC
        is a
        Delaware banking corporation duly organized, validly existing and in good
        standing under the Laws of the State of Delaware, holding a valid certificate
        to
        do business as a Delaware banking corporation with banking authority to execute
        and deliver, and perform its obligations under, the Mortgagee Agreements,
        the
        Pass Through Trustee Agreements and the Subordination Agent
        Agreements.

       

      6.4.2  
        Corporate
        Authorization

       

      WTC
        has
        taken, or caused to be taken, all necessary corporate action (including,
        without
        limitation, the obtaining of any consent or approval of stockholders required
        by
        Law or by its Certificate of Incorporation or By-Laws) to authorize the
        execution and delivery by WTC, in its individual capacity or as Mortgagee,
        Pass
        Through Trustee or Subordination Agent, as the case may be, of the Mortgagee
        Agreements, the Pass Through Trustee Agreements and the Subordination Agent
        Agreements and the performance of its obligations thereunder.

       

      6.4.3  
        No
        Violation

       

      The
        execution and delivery by WTC, in its individual capacity or as Mortgagee,
        Pass
        Through Trustee or Subordination Agent, as the case may be, of the Mortgagee
        Agreements, the 

       

      
        

      

    

    
      26. 
        Delete for New Aircraft.

       

      
        
          
          

        

        
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      Pass
        Through Trustee Agreements and the Subordination Agent Agreements, the
        performance by WTC, in its individual capacity or as Mortgagee, Pass Through
        Trustee or Subordination Agent, as the case may be, of its obligations
        thereunder and the consummation on the Closing Date of the transactions
        contemplated thereby, do not and will not (a) violate any provision of the
        Certificate of Incorporation or By-Laws of WTC, (b) violate any Law
        applicable to or binding on WTC, in its individual capacity or (except in
        the
        case of any Law relating to any Plan) as Mortgagee, Pass Through Trustee
        or
        Subordination Agent, or (c) violate or constitute any default under (other
        than any violation or default that would not result in a Material Adverse
        Change
        to WTC, in its individual capacity or as Mortgagee, Pass Through Trustee
        or
        Subordination Agent), or result in the creation of any Lien (other than the
        lien
        of the Trust Indenture) upon any property of WTC, in its individual capacity
        or
        as Mortgagee, Pass Through Trustee or Subordination Agent, or any of WTC’s
        subsidiaries under, any indenture, mortgage, chattel mortgage, deed of trust,
        conditional sales contract, lease, loan or other agreement, instrument or
        document to which WTC, in its individual capacity or as Mortgagee, Pass Through
        Trustee or Subordination Agent, is a party or by which WTC, in its individual
        capacity or as Mortgagee, Pass Through Trustee or Subordination Agent, or
        any of
        their respective properties is bound.

       

      6.4.4  
        Approvals

       

      The
        execution and delivery by WTC, in its individual capacity or as Mortgagee,
        Pass
        Through Trustee or Subordination Agent, as the case may be, of the Mortgagee
        Agreements, the Pass Through Trustee Agreements and the Subordination Agent
        Agreements, the performance by WTC, in its individual capacity or as Mortgagee,
        Pass Through Trustee or Subordination Agent, as the case may be, of its
        obligations thereunder and the consummation on the Closing Date by WTC, in
        its
        individual capacity or as Mortgagee, Pass Through Trustee or Subordination
        Agent, as the case may be, of the transactions contemplated thereby do not
        and
        will not require the consent, approval or authorization of, or the giving
        of
        notice to, or the registration with, or the recording or filing of any documents
        with, or the taking of any other action in respect of, (a) any trustee or
        other holder of any Debt of WTC or (b) any Government Entity, other than
        the filing of the FAA Filed Documents and the Financing Statements.

       

      6.4.5  
        Valid
        and Binding Agreements

       

      The
        Mortgagee Agreements, the Pass Through Trustee Agreements and the Subordination
        Agent Agreements have been duly authorized, executed and delivered by WTC
        and,
        assuming the due authorization, execution and delivery by the other party
        or
        parties thereto, constitute the legal, valid and binding obligations of WTC,
        in
        its individual capacity or as Mortgagee, Pass Through Trustee or Subordination
        Agent, as the case may be, and are enforceable against WTC, in its individual
        capacity or as Mortgagee, Pass Through Trustee or Subordination Agent, as
        the
        case may be, in accordance with the respective terms thereof, except as such
        enforceability may be limited by bankruptcy, insolvency, reorganization,
        receivership, moratorium or other similar Laws affecting the rights of creditors
        generally and general principles of equity, whether considered in a proceeding
        at law or in equity.

       

      6.4.6  
        Citizenship

       

      WTC
        is a
        Citizen of the United States.

       

      
        
          
          

        

        
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      6.4.7  
        No
        Liens

       

      On
        the
        Closing Date, there are no Lessor Liens attributable to WTC in respect of
        all or
        any part of the Trust Estate or the Trust Indenture Estate.

       

      6.4.8  
        Litigation

       

      There
        are
        no pending or, to the Actual Knowledge of WTC, threatened actions or proceedings
        against WTC, in its individual capacity or as Mortgagee, Pass Through Trustee
        or
        Subordination Agent, before any court, administrative agency or tribunal
        which,
        if determined adversely to WTC, in its individual capacity or as Mortgagee,
        Pass
        Through Trustee or Subordination Agent, as the case may be, would materially
        adversely affect the ability of WTC, in its individual capacity or as Mortgagee,
        Pass Through Trustee or Subordination Agent, as the case may be, to perform
        its
        obligations under, or affect the validity or enforceability of, any of the
        Mortgagee Agreements, the Pass Through Trustee Agreements or the Subordination
        Agent Agreements.

       

      6.4.9  
        Securities
        Laws

       

      Neither
        WTC nor any person authorized to act on its behalf has directly or indirectly
        offered any beneficial interest or Security relating to the ownership of
        the
        Aircraft or any interest in the Trust Indenture Estate or any of the Equipment
        Notes or any other interest in or Security under the Trust Indenture for
        sale
        to, or solicited any offer to acquire any such interest or Security from,
        or has
        sold any such interest or Security to, any Person other than the Participants,
        except for the offering and sale of the Pass Through Certificates.

       

      6.4.10  
        Investment

       

      The
        Equipment Notes to be acquired by the Subordination Agent are being acquired
        by
        it for the account of the Pass Through Trustee, for investment and not with
        a
        view to any resale or distribution thereof, except that, subject to the
        restrictions on transfer set forth in Section 10.1.3, the disposition by it
        of its Equipment Notes shall at all times be within its control.

       

      6.4.11  
        Taxes

       

      There
        are
        no Taxes payable by the Pass Through Trustee or WTC, as the case may be,
        imposed
        by the State of Delaware or any political subdivision or taxing authority
        thereof in connection with the execution, delivery and performance by the
        Pass
        Through Trustee or WTC, as the case may be, of this Agreement or any of the
        Pass
        Through Trustee Agreements (other than franchise or other taxes based on
        or
        measured by any fees or compensation received by any the Pass Through Trustee
        or
        WTC, as the case may be, for services rendered in connection with the
        transactions contemplated by the Pass Through Trust Agreement), and there
        are no
        Taxes payable by the Pass Through Trustee or WTC, as the case may be, imposed
        by
        the State of Delaware or any political subdivision thereof in connection
        with
        the acquisition, possession or ownership by the Pass Through Trustee of any
        of
        the Equipment Notes (other than franchise or other taxes based on or measured
        by
        any fees or compensation received by the Pass Through Trustee or WTC, as
        the
        case may be, for services rendered in connection with the transactions
        contemplated by the Pass Through Trust Agreement), and, assuming that the
        trust
        created by the

       

      
        
          
          

        

        
          
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      Pass
        Through Trust Agreement will not be taxable as a corporation, but, rather,
        will
        be characterized as a grantor trust under subpart E, Part I of Subchapter
        J of
        the Code or as a partnership under Subchapter K of the Code, such trust will
        not
        be subject to any Taxes imposed by the State of Delaware or any political
        subdivision thereof.

       

      6.4.12  
        Control

       

      WTC
        is
        not an Affiliate of the Owner Participant or the Owner Trustee.

       

      6.4.13  
        Broker’s
        Fees

       

      No
        Person
        acting on behalf of WTC, in its individual capacity or as Mortgagee, Pass
        Through Trustee or Subordination Agent, is or will be entitled to any broker’s
        fee, commission or finder’s fee in connection with the
        Transactions.

       

      6.5  
Airframe
        Manufacturer’s Representations and Warranties

       

      Airframe
        Manufacturer represents and warrants to Lessee, each Participant, Subordination
        Agent, Owner Trustee and Mortgagee that:

       

      6.5.1  
        Organization,
        Etc.

       

      Airframe
        Manufacturer is a corporation duly incorporated, validly existing and in
        good
        standing under the Laws of Brazil, and has the corporate power and authority
        to
        conduct the business in which it is currently engaged and to own or hold
        under
        lease its properties and to enter into, and perform its obligations under
        the
        Airframe Manufacturer Agreements. [OP Guarantor has a tangible net worth
        (exclusive of goodwill) greater than $25,000,000.]27

       

      6.5.2  
        Corporate
        Authorization

       

      Airframe
        Manufacturer has taken, or caused to be taken, all necessary corporate action
        (including, without limitation, the obtaining of any consent or approval
        of
        stockholders required by its constitutional documents) to authorize the
        execution and delivery of each of the Airframe Manufacturer Agreements, and
        the
        performance of its obligations thereunder.

       

      6.5.3  
        No
        Violation

       

      The
        execution and delivery by Airframe Manufacturer of the Airframe Manufacturer
        Agreements, the performance by Airframe Manufacturer of its obligations
        thereunder and the consummation by Airframe Manufacturer on the Closing Date
        of
        the transactions contemplated thereby, do not and will not (a) violate any
        provision of the constitutional documents of Airframe Manufacturer,
        (b) violate any Law applicable to or binding on Airframe Manufacturer or
        (c) violate or constitute any default under (other than any violation or
        default that would not result in a Material Adverse Change to Airframe
        Manufacturer), or result in the creation of any Lien (other than as provided
        for
        or otherwise permitted in the Operative Agreements) upon the

       

      
        

      

    

    
      27. 
        Insert if OP is an Affiliate of Airframe Manufacturer.

       

      
        
          
          

        

        
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      Trust
        Estate under, any indenture, mortgage, chattel mortgage, deed of trust,
        conditional sales contract, lease, loan or other material agreement, instrument
        or document to which Airframe Manufacturer is a party or by which Airframe
        Manufacturer or any of its properties is bound.

       

      6.5.4  
        Approvals

       

      The
        execution and delivery by Airframe Manufacturer of the Airframe Manufacturer
        Agreements, the performance by Airframe Manufacturer of its obligations
        thereunder and the consummation by Airframe Manufacturer on the Closing Date
        of
        the transactions contemplated thereby do not and will not require the consent
        or
        approval of, or the giving of notice to, or the registration with, or the
        recording or filing of any documents with, or the taking of any other action
        in
        respect of, (a) any trustee or other holder of any Debt of Airframe
        Manufacturer and (b) any Government Entity, other than the filing of the
        FAA Filed Documents and the Financing Statements.

       

      6.5.5  
        Valid
        and Binding Agreements

       

      The
        Airframe Manufacturer Agreements have been duly authorized, executed and
        delivered by Airframe Manufacturer and, assuming the due authorization,
        execution and delivery by the other party or parties thereto, constitute
        the
        legal, valid and binding obligations of Airframe Manufacturer and are
        enforceable against Airframe Manufacturer in accordance with the respective
        terms thereof, except as such enforceability may be limited by bankruptcy,
        insolvency, reorganization, receivership, moratorium and other similar Laws
        affecting the rights of creditors generally and general principles of equity,
        whether considered in a proceeding at law or in equity.

       

      6.5.6  
        Title

       

      On
        the
        Closing Date, Lessor shall have good and marketable title to the Aircraft,
        free
        and clear of all claims, Liens and encumbrances of any nature, except Permitted
        Liens.

       

      6.5.7  
        Taxes

       

      Lessor
        has filed or will cause to be filed all Federal and all material state, local
        and foreign tax returns which are required to be filed by it and have paid
        or
        will cause to be paid all Taxes which are due and payable in connection with
        the
        Aircraft.

       

      6.5.8  
        Litigation

       

      There
        are
        no pending or, to the Actual Knowledge of Airframe Manufacturer, threatened
        actions or proceedings against Airframe Manufacturer before any court,
        governmental body, arbitration board, administrative agency or tribunal which,
        if determined adversely to Airframe Manufacturer, would materially adversely
        affect the ability of Airframe Manufacturer to perform its obligations under,
        or
        affect the validity or enforceability of, the Airframe Manufacturer
        Agreements.

       

      
        
          
          

        

        
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      6.5.9  
        Securities
        Laws

       

      Neither
        Airframe Manufacturer nor any person Airframe Manufacturer has authorized
        to act
        on its behalf has directly or indirectly offered any beneficial interest
        in or
        Security relating to the ownership of the Aircraft or any interest in the
        Trust
        Estate, or any of the Equipment Notes or any other interest in or Security
        under
        the Trust Indenture for sale to, or solicited any offer to acquire any of
        the
        same from, any Person in violation of the Securities Act or applicable state
        securities Laws.

       

      6.5.10  
        Broker’s
        Fees

       

      No
        Person
        acting on behalf of Airframe Manufacturer is or will be entitled to any broker’s
        fee, commission or finder’s fee in connection with the Transactions, except for
        the placement agent’s fees and commissions payable with respect to the offering
        of the Pass Through Certificates and the fees and expenses of Equity Advisor,
        which are the sole responsibility of Airframe Manufacturer.

       

      SECTION
        7.  COVENANTS,
        UNDERTAKINGS AND AGREEMENTS

       

      7.1  
Covenants
        of Lessee

       

      Lessee
        covenants and agrees with Owner Participant, Loan Participant, Owner Trustee
        and
        Mortgagee as follows:

       

      7.1.1  
        Corporate
        Existence; U.S. Air Carrier

       

      Lessee
        shall at all times maintain its corporate existence, except as permitted
        by
        Section 13.2 of the Lease, and shall at all times remain a U.S. Air
        Carrier.

       

      7.1.2  
        Notice
        of Change of Chief Executive Office

       

      Lessee
        will give Owner Participant, Owner Trustee and Mortgagee timely written notice
        (but in any event within 30 days prior to the expiration of the period of
        time
        specified under applicable Law to prevent lapse of perfection) of any change
        of
        its location (as such term is used in Section 9-307 of the UCC) from its
        then
        present location and will promptly take any action required by
        Section 7.1.3(c) as a result of such relocation.

       

      7.1.3  
        Certain
        Assurances

       

      (a) Lessee
        shall duly execute, acknowledge and deliver, or shall cause to be executed,
        acknowledged and delivered, all such further agreements, instruments,
        certificates or documents, and shall do and cause to be done such further
        acts
        and things, in any case, as Owner Participant, Owner Trustee or Mortgagee
        shall
        reasonably request for accomplishing the purposes of this Agreement and the
        other Operative Agreements, provided that
        any
        instrument or other document so executed by Lessee will not expand any
        obligations or limit any rights of Lessee in respect of the transactions
        contemplated by any Operative Agreement.

       

      
        
          
          

        

        
          
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      (b) Lessee
        shall promptly take such action with respect to the recording, filing,
        re-recording and re-filing of the Lease, the Trust Agreement and the Trust
        Indenture and the respective supplements thereto, including, without limitation,
        Lease Supplement No. 1 and the initial Trust Indenture Supplement, as shall
        be necessary to establish, perfect and protect the interests and rights of
        Owner
        Trustee in and to the Aircraft and under the Lease and the perfection and
        priority of the Lien created by the Trust Indenture, and Lessee shall pay
        all
        out-of-pocket costs and expenses thereof to the extent not paid by another
        party
        as Transaction Expenses. Lessee shall furnish to Owner Participant or Owner
        Trustee such information (other than with respect to the citizenship of Owner
        Participant and Owner Trustee) in Lessee’s possession or otherwise reasonably
        available to Lessee as may be required to enable Owner Participant or Owner
        Trustee to make application for registration of the Aircraft under the Act
        (subject to Lessee’s rights under Section 7.1.2 of the Lease).

       

      (c) Lessee
        will cause the FAA Filed Documents, the Financing Statements and all
        continuation statements (and any amendments necessitated by any combination,
        consolidation or merger pursuant to Section 13.2 of the Lease, or any
        change of its location (as such term is used in Section 9-307 of the UCC))
        in
        respect of the Financing Statements to be prepared and, subject only to the
        execution and delivery thereof by Owner Trustee and Mortgagee, as applicable,
        duly and timely filed and recorded, or filed for recordation, to the extent
        permitted under the Act (with respect to the FAA Filed Documents) or the
        UCC or
        similar law of any other applicable jurisdiction (with respect to such other
        documents). Lessee hereby authorizes Owner Trustee and/or Mortgagee to prepare
        and file any UCC financing statements (including any amendments thereto)
        and
        continuation statements referred to in this Section 7.1.3(c).

       

      (d) If
        the
        Aircraft has been registered in a country other than the United States pursuant
        to Section 7.1.2 of the Lease, Lessee will furnish to Owner Trustee,
        Mortgagee and each Participant annually after such registration, commencing
        with
        the calendar year after such registration is effected, an opinion of special
        counsel reasonably satisfactory to Owner Trustee and Mortgagee stating that,
        in
        the opinion of such counsel, either that (i) such action has been taken
        with respect to the recording, filing, re-recording and re-filing of the
        Operative Agreements and any supplements and amendments thereto as is necessary
        to establish, perfect and protect Owner Trustee’s and Mortgagee’s respective
        right, title and interest in and to the Aircraft and the Operative Agreements,
        reciting the details of such actions, or (ii) no such action is necessary
        to maintain the perfection of such right, title and interest.

       

      7.1.4  
        Securities
        Laws

       

      Neither
        Lessee nor any person authorized to act on its behalf will directly or
        indirectly offer any beneficial interest or Security relating to the ownership
        of the Aircraft or the Lease or any interest in the Trust Estate and Trust
        Agreement or any of the Equipment Notes or any other interest in or Security
        under the Trust Indenture, for sale to, or solicit any offer to acquire any
        such
        interest or Security from, or sell any such interest or Security to, any
        person
        in violation of the Securities Act or applicable state or foreign securities
        Laws.

       

      
        
          
          

        

        
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      7.2  
Covenants
        of Owner Participant

       

      Owner
        Participant covenants and agrees with Lessee, and except with respect to
        Section
        7.2.4, Loan Participant, Owner Trustee and Mortgagee as follows:

       

      7.2.1  
        Liens

       

      Owner
        Participant (a) will not directly or indirectly create, incur, assume or
        suffer
        to exist any Lessor Lien attributable to it on or with respect to all or
        any
        part of the Trust Estate, the Trust Indenture Estate or the Aircraft, (b)
        will,
        at its own cost and expense, take such action as may be necessary to discharge
        any Lessor Lien attributable to Owner Participant on all or any part of the
        Trust Estate, the Trust Indenture Estate or the Aircraft. Owner Participant
        will
        hold harmless and indemnify Lessee, Owner Trustee, each Note Holder, Mortgagee,
        each of their respective Affiliates, successors and permitted assigns, the
        Trust
        Estate and the Trust Indenture Estate from and against (i) any and all Expenses,
        (ii) any reduction in the amount payable out of the Trust Estate or the Trust
        Indenture Estate and (iii) any interference with the possession, operation
        or
        other use of all or any part of the Aircraft, in each case imposed on, incurred
        by or asserted against any of the foregoing as a consequence of any such
        Lessor
        Lien.

       

      7.2.2  
        Revocation
        of Trust Agreement

       

      (a) Owner
        Participant will comply with the provisions of the Trust Agreement applicable
        to
        it, and will not terminate or revoke the Trust Agreement or the trusts created
        thereunder without the prior written consent of Lessee and Mortgagee and
        will
        not amend, modify or supplement the Trust Agreement, or waive any of the
        provisions thereof, if such amendment, modification, supplement or waiver
        would
        have a material adverse effect on Lessee, without the consent of Lessee,
        or on
        Mortgagee or any Note Holder, without the consent of Mortgagee.

       

      (b) Notwithstanding
        Section 7.2.2(a), Owner Participant may at any time remove Owner Trustee
        pursuant to Section 9.1 of the Trust Agreement or terminate the Trust
        Agreement pursuant to Section 11.2 of the Trust Agreement.

       

      7.2.3  
        Change
        of Situs of Owner Trust

       

      If,
        at
        any time, any Tax Indemnitee or the Trust Estate becomes subject to any Taxes
        for which it is indemnified pursuant to Section 9.3 of this Agreement and
        if, as a consequence thereof, Lessee should request that the situs of the
        Trust
        be moved to another state in the United States from the state in which it
        is
        then located, the situs of the Trust may be moved with the written consent
        of
        Owner Participant (which consent shall not be unreasonably withheld) and
        Owner
        Participant will take whatever action may be reasonably necessary to accomplish
        such removal; provided,
        that,
        in any event, (a) Lessee shall provide such additional tax indemnification
        as Owner Participant and the Note Holders or the Pass Through Trustee may
        reasonably request to cover any additional unindemnified Taxes or loss of
        Tax
        benefits described in the assumptions in the Tax Indemnity Agreement resulting
        from such change in the situs of the Trust (it being agreed that if a Lease
        Event of Default shall have occurred and is then continuing, it shall not
        be
        unreasonable for Owner Participant to withhold its consent to moving the
        situs
        of the Trust, notwithstanding the provision by Lessee of such additional
        tax

       

      
        
          
          

        

        
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      indemnification,
        unless a Section 1110 Event shall have occurred and is then continuing),
        (b) the rights and obligations under the Operative Agreements of Owner
        Participant, the Note Holders, Pass Through Trustee and Mortgagee shall not
        be
        adversely affected as a result of the taking of such action, (c) the Lien
        of the Trust Indenture on the Trust Indenture Estate shall not be adversely
        affected by such action, and Lessee and Owner Trustee shall execute and deliver
        such documents as may be necessary or as may reasonably be requested by
        Mortgagee to protect and maintain the perfection and priority of such Lien,
        (d) Owner Participant, Pass Through Trustee and Mortgagee shall have
        received an opinion or opinions of counsel (which counsel is reasonably
        satisfactory to Owner Participant, Pass Through Trustee and Mortgagee) in
        scope,
        form and substance reasonably satisfactory to Owner Participant, Pass Through
        Trustee and Mortgagee to the effect that (i) the Trust, as thus removed,
        shall remain a validly established trust, (ii) any amendments to the Trust
        Agreement necessitated by such removal shall have been duly authorized, executed
        and delivered by the parties thereto and shall constitute the valid and binding
        obligations of such parties, enforceable in accordance with their terms,
        (iii) covering such other matters as Owner Participant, Pass Through
        Trustee or Mortgagee may reasonably request, (e) if such removal involves
        the replacement of Owner Trustee, then Owner Participant, Pass Through Trustee
        and Mortgagee shall have received an opinion of counsel to such successor
        Owner
        Trustee in form and substance reasonably satisfactory to Owner Participant,
        Pass
        Through Trustee and Mortgagee covering the matters described in the opinion
        delivered pursuant to Section 5.1.2(xxv)(D) and (f) Lessee shall
        indemnify and hold harmless Owner Participant, Note Holders, Pass Through
        Trustee and Wells Fargo, in its individual capacity and as Owner Trustee,
        on a
        net after-tax basis against any and all reasonable out-of-pocket costs and
        expenses including attorneys’ fees and disbursements, fees and expenses of any
        new owner trustee, registration, recording or filing fees and taxes incurred
        by
        Owner Participant, Note Holders, Pass Through Trustee or Owner Trustee in
        connection with such change of situs. Owner Participant agrees with Lessee
        that
        it will not consent to or direct a change in the situs of the Trust Estate
        without the prior written consent of Lessee, except that if a Lease Event
        of
        Default shall have occurred and is then continuing, except during a Section
        1110
        Period, such consent shall not be required.

       

      7.2.4  
        Compliance
        with Lease Provisions

       

      Owner
        Participant will, solely for the benefit of Lessee, comply with the express
        provisions applicable to it contained in the Lease.

       

      7.2.5  
        Securities
        Act

       

      Owner
        Participant will not directly or indirectly offer any beneficial interest
        or
        Security relating to the ownership of the Aircraft or any interest in the
        Trust
        Estate or any of the Equipment Notes or any other interest in or Security
        under
        the Trust Indenture for sale to, or solicit any offer to acquire any such
        interest or Security from, or sell any such interest or Security to, any
        Person
        in violation of the registration provisions of the Securities Act or applicable
        state or foreign Securities Laws, provided that the foregoing shall not be
        deemed to impose on Owner Participant any responsibility with respect to
        any
        such offer, sale or solicitation by any other party hereto.

       

      
        
          
          

        

        
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      7.2.6  
        Regarding
        the Owner Trustee

       

      Owner
        Participant will instruct Owner Trustee to perform its obligations under
        each
        Owner Trustee Agreement.

       

      7.3  
Covenants
        of Wells Fargo and Owner Trustee

       

      Wells
        Fargo, in its individual capacity and/or as Owner Trustee, as provided below,
        covenants and agrees with Lessee, Owner Participant, each Note Holder and
        Mortgagee as follows:

       

      7.3.1  
        Liens

       

      Wells
        Fargo (a) will not directly or indirectly create, incur, assume or suffer
        to
        exist any Lessor Lien attributable to it or Owner Trustee with respect to
        all or
        any part of the Trust Estate, the Trust Indenture Estate or the Aircraft,
        (b)
        will, at its own cost and expense, take such action as may be necessary to
        discharge any Lessor Lien attributable to Wells Fargo or Owner Trustee on
        all or
        any part of the Trust Estate, the Trust Indenture Estate or the Aircraft.
        Wells
        Fargo will in its individual capacity hold harmless and indemnify Lessee,
        Owner
        Participant, each Note Holder, Mortgagee, each of their respective Affiliates,
        successors and permitted assigns, the Trust Estate and the Trust Indenture
        Estate from and against (i) any and all Expenses, (ii) any reduction in the
        amount payable out of the Trust Estate or the Trust Indenture Estate and
        (iii)
        any interference with the possession, operation or other use of all or any
        part
        of the Aircraft, in each case imposed on, incurred by or asserted against
        any of
        the foregoing as a consequence of any such Lessor Lien.

       

      7.3.2  
        Other
        Business

       

      Owner
        Trustee will not enter into any business or other activity except as
        contemplated by the Operative Agreements. 

       

      7.3.3  
        Notice
        of Change of Location

       

      Wells
        Fargo, in its individual capacity and as Owner Trustee, will give Lessee,
        each
        Participant and Mortgagee 30 days’ prior written notice of any change of its
        location (as such term is used in Section 9-307 of the UCC) from its then
        present location and will promptly take any action required by
        Section 7.3.8 as a result of such relocation.

       

      7.3.4  
        Securities
        Act

       

      Wells
        Fargo, in its individual capacity and as Owner Trustee, will not directly
        or
        indirectly offer any beneficial interest or Security relating to the ownership
        of the Aircraft or any interest in the Trust Estate or any of the Equipment
        Notes or any other interest in or Security under the Trust Indenture for
        sale
        to, or solicit any offer to acquire any such interest or Security from, or
        sell
        any such interest or Security to, any Person in violation of the registration
        provisions of the Securities Act or applicable state or foreign securities
        Laws,
        provided that the foregoing shall not be deemed to impose on Wells Fargo
        in its
        individual capacity or as Owner

       

      
        
          
          

        

        
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      Trustee,
        any responsibility with respect to any such offer, sale or solicitation by
        any
        other party hereto.

       

      7.3.5  
        Performance
        of Agreements

       

      Owner
        Trustee shall perform its obligations under the Owner Trustee Agreements
        in
        accordance with the terms thereof.

       

      7.3.6  
        Release
        of Lien of Trust Indenture

       

      Owner
        Trustee, in each instance referred to in the Lease in which a transfer of
        any
        property is required to be made by Owner Trustee to Lessee or any other Person
        (other than Mortgagee or Owner Participant), shall, at Lessee’s request and
        expense, use its reasonable efforts to procure from Mortgagee the prompt
        release
        of the Lien of the Trust Indenture with respect to such property.

       

      7.3.7  
        Notices;
        Documents

       

      In
        the
        event any claim with respect to any liabilities is filed against the Owner
        Trustee in its capacity as such and Owner Trustee shall have Actual Knowledge
        thereof, the Owner Trustee shall promptly notify Lessee and Mortgagee in
        writing
        thereof. Owner Trustee further agrees to provide to Lessee promptly any
        documents (including the certificate of aircraft registration) that it receives
        from the FAA with respect to the Aircraft.

       

      7.3.8  
        Filings

       

      After
        the
        Closing Date, Owner Trustee shall duly execute and deliver to Lessee all
        filings
        and recordings (including, without limitation, all filings and UCC financing
        statements under the Act and the UCC and any amendments to UCC financing
        statements necessitated by any change of its location (as such term is used
        in
        Section 9-307 of the UCC)), prepared and delivered to it by Lessee required
        to
        perfect Owner Trustee’s title to the Aircraft and the liens of and security
        interests granted by the Trust Indenture (or to maintain such perfection)
        and to
        make such title, liens and security interests valid and enforceable. Owner
        Trustee hereby authorizes the Mortgagee to prepare and file any UCC financing
        statements (including any amendments thereto) and continuation statements
        referred to in this Section 7.3.8.

       

      7.3.9  
        Trust
        Agreement

       

      Each
        of
        Wells Fargo and Owner Trustee hereby (i) agrees with Lessee, Loan
        Participant and Mortgagee not to amend, supplement, terminate or otherwise
        modify any provision of the Trust Agreement in such a manner as to adversely
        affect the rights of any such party without the prior written consent of
        such
        party and (ii) agrees with Lessee, Loan Participant and Mortgagee not to
        revoke the trust created by the Trust Agreement so long as the Trust Indenture
        remains undischarged or if such revocation would have an adverse effect on
        the
        Lessee. Nothing contained in this Agreement shall impair any right under
        the
        Trust Agreement of Wells Fargo to resign as Owner Trustee in accordance with
        the
        provisions of the Trust Agreement.

       

      
        
          
          

        

        
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      7.4  
Covenants
        of WTC

       

      WTC
        in
        its individual capacity or as Mortgagee, Pass Through Trustee or Subordination
        Agent, as the case may be, covenants and agrees with Lessee, Owner Participant
        and Owner Trustee as follows:

       

      7.4.1  
        Liens

       

      WTC
        (a)
        will not directly or indirectly create, incur, assume or suffer to exist
        any
        Lessor Lien attributable to it on or with respect to all or any part of the
        Trust Estate, the Trust Indenture Estate or the Aircraft, (b) will, at its
        own
        cost and expense, promptly take such action as may be necessary to discharge
        any
        Lessor Lien attributable to WTC on all or any part of the Trust Estate, the
        Trust Indenture Estate or the Aircraft and (c) will in its individual capacity
        hold harmless and indemnify Lessee, Owner Participant, each Note Holder,
        Owner
        Trustee, each of their respective Affiliates, successors and permitted assigns,
        the Trust Estate and the Trust Indenture Estate from and against (i) any
        and all
        Expenses, (ii) any reduction in the amount payable out of the Trust Estate
        or
        the Trust Indenture Estate and (iii) any interference with the possession,
        operation or other use of all or any part of the Aircraft, in each case imposed
        on, incurred by or asserted against any of the foregoing as a consequence
        of any
        such Lessor Lien.

       

      7.4.2  
        Securities
        Act

       

      WTC
        in
        its individual capacity or as Mortgagee, Pass Through Trustee or Subordination
        Agent, will not offer any beneficial interest or Security relating to the
        ownership of the Aircraft or any interest in the Trust Indenture Estate,
        or any
        of the Equipment Notes or any other interest in or Security under the Trust
        Indenture for sale to, or solicit any offer to acquire any such interest
        or
        Security from, or sell any such interest or Security to, any Person in violation
        of the Securities Act or applicable state or foreign securities Laws, provided
        that the foregoing shall not be deemed to impose on WTC any responsibility
        with
        respect to any such offer, sale or solicitation by any other party
        hereto.

       

      7.4.3  
        Performance
        of Agreements

       

      WTC,
        in
        its individual capacity and as Mortgagee, Pass Through Trustee or Subordination
        Agent, as the case may be, shall perform its obligations under the Mortgagee
        Agreements, the Pass Through Trustee Agreements and the Subordination Agent
        Agreements in accordance with the terms thereof.

       

      7.4.4  
        Withholding
        Taxes

       

      WTC
        shall
        indemnify (on an after-tax basis) and hold harmless Lessee, Lessor and Owner
        Participant against any United States withholding taxes (and related interest,
        penalties and additions to tax) as a result of the failure by WTC to withhold
        on
        payments to any Note Holder if such Note Holder failed to provide to Mortgagee
        necessary certificates or forms to substantiate the right to exemption from
        such
        withholding tax. 

       

      
        
          
          

        

        
          
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      7.5  
Covenants
        of Note Holders

       

      Each
        Note
        Holder (including Subordination Agent) as to itself only covenants and agrees
        with Lessee, Owner Participant, Owner Trustee and Mortgagee as
        follows:

       

      7.5.1  
        Withholding
        Taxes

       

      Such
        Note
        Holder (if it is a Non-U.S. Person) agrees to indemnify (on an after-tax
        basis)
        and hold harmless Lessee, Lessor, Owner Participant and Mortgagee against
        any
        United States withholding taxes (and related interest, penalties and additions
        to tax) as a result of the inaccuracy or invalidity of any certificate or
        form
        provided by such Note Holder to Mortgagee in connection with such withholding
        taxes. Any amount payable hereunder shall be paid within 30 days after receipt
        by a Note Holder of a written demand therefor.

       

      7.5.2  
        Transfer;
        Compliance

       

      (a) Such
        Note
        Holder will (i) not transfer any Equipment Note or interest therein in violation
        of the Securities Act or applicable state or foreign securities Law;
provided,
        that
        the foregoing provisions of this section shall not be deemed to impose on
        such
        Note Holder any responsibility with respect to any such offer, sale or
        solicitation by any other party hereto, and (ii) perform and comply with
        the
        obligations specified to be imposed on it (as a Note Holder) under each of
        the
        Trust Indenture and the form of Equipment Note set forth in the Trust
        Indenture.

       

      (b) Except
        as
        otherwise required by the terms of Section 2.13 of the Trust Indenture, each
        Note Holder will not sell, assign, convey, exchange or otherwise transfer
        any
        Equipment Note or any interest in, or represented by, any Equipment Note
        (it
        being understood that this provision is not applicable to the Pass Through
        Certificates) unless the proposed transferee thereof first provides Lessee
        and
        Owner Participant with both of the following:

       

      (i) a
        written
        representation and covenant that either (a) no portion of the funds it uses
        to
        purchase, acquire and hold such Equipment Note or interest directly or
        indirectly constitutes, or may be deemed under the Code or ERISA or any rulings,
        regulations or court decisions thereunder to constitute, the assets of any
        Plan
        or (b) the transfer, and subsequent holding, of such Equipment Note or interest
        shall not involve or give rise to a transaction that constitutes a prohibited
        transaction within the meaning of Section 406 of ERISA or Section 4975(c)(1)
        of
        the Code involving Lessee, Owner Participant, Pass Through Trustee, the
        Subordination Agent or the proposed transferee (other than a transaction
        that is
        exempted from the prohibitions of such sections by applicable provisions
        of
        ERISA or the Code or administrative exemptions or regulations issued
        thereunder); and

       

      (ii) a
        written
        covenant that it will not transfer any Equipment Note or any interest in,
        or
        represented by, any Equipment Note unless the subsequent transferee also
        makes
        the representation described in clause (i) above and agrees to comply with
        this
        clause (ii) and the other covenants of the Note Holders contained in the
        Operative Agreements.

       

      
        
          
          

        

        
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      7.6  
Agreements

       

      7.6.1  
        Owner
        Trustee Is Owner for All Purposes

       

      Lessee,
        the Owner Participant and Owner Trustee agree that for all purposes, after
        the
        Closing, Owner Trustee will be the owner of the Aircraft (except that Owner
        Participant will be the owner for income tax purposes) and Lessee will be
        the
        lessee thereof. No transfer, by operation of Law or otherwise, of the beneficial
        interest of Owner Participant in and to the Trust Estate shall operate to
        transfer legal title to any part of the Trust Estate to any transferee
        thereof.

       

      7.6.2  
        Commencement
        of Bankruptcy Proceedings

       

      Lessee,
        each Participant, each Note Holder, Wells Fargo, Owner Trustee, WTC and
        Mortgagee agree for the benefit of each of the others that it will not commence
        or join in any proceeding under the Bankruptcy Code to commence a case under
        Section 303 of the Bankruptcy Code against the Trust Estate. Nothing
        contained herein shall be deemed to preclude any Participant, any Note Holder,
        Wells Fargo, Owner Trustee, WTC or Mortgagee from filing any claim against
        the
        Trust Estate in any case commenced against the Trust Estate or preclude the
        exercise of remedies pursuant to, or limit the rights of Mortgagee under,
        the
        Trust Indenture.

       

      7.6.3  
        Certain
        Bankruptcy Matters

       

      If
        (a) all or any part of the Trust Estate becomes the property of, or Owner
        Trustee or Owner Participant becomes, a debtor subject to the reorganization
        provisions of the Bankruptcy Code, (b) pursuant to such reorganization
        provisions, including Section 1111(b) of the Bankruptcy Code, Wells Fargo
        or Owner Participant is required, by reason of Wells Fargo or Owner Participant
        being held to have recourse liability to any Note Holder or Mortgagee directly
        or indirectly (other than the recourse liability of Wells Fargo or Owner
        Participant under this Agreement, the Trust Indenture or by separate agreement),
        to make payment on account of any amount payable as principal, Make-Whole
        Amount, if any, interest or other amounts on the Equipment Notes, and
        (c) any Note Holder or Mortgagee actually receives any Excess Amount, as
        defined below, which reflects any payment by Wells Fargo or Owner Participant
        on
        account of (b) above, then such Note Holder or Mortgagee, as the case may
        be,
        shall promptly refund to Wells Fargo or Owner Participant (whichever shall
        have
        made such payment) such Excess Amount. 

       

      For
        purposes of this Section 7.6.3, “Excess Amount” means the amount by which such
        payment exceeds the amount that would have been received by a Note Holder
        or
        Mortgagee if Wells Fargo or Owner Participant had not become subject to the
        recourse liability referred to in clause (b) above, and such Note Holder
        or
        Mortgagee receives written notice that such amount is an Excess Amount prior
        to
        its distribution thereof. Nothing contained in this Section 7.6.3 shall
        prevent a Note Holder or Mortgagee from enforcing any personal recourse
        obligation (and retaining the proceeds thereof) of Wells Fargo or Owner
        Participant under this Agreement (other than as referred to in clause (b)
        above) or the Trust Indenture (and any exhibits or annexes thereto) or from
        retaining any amount paid by Owner Participant under Sections 2.13 or 4.03
        of the Trust Indenture.

       

      
        
          
          

        

        
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      7.6.4  
        Quiet
        Enjoyment; Sale by Owner Trustee Binding

       

      (a) Owner
        Participant, Pass Through Trustee, Subordination Agent, each Note Holder,
        Owner
        Trustee and Mortgagee agrees as to itself with Lessee that, so long as no
        Lease
        Event of Default shall have occurred and be continuing, such Person shall
        not
        (and shall not permit any Affiliate or other Person claiming by, through
        or
        under it to) interfere with Lessee’s rights in accordance with the Lease to the
        quiet enjoyment, possession and use of the Aircraft during the Term.

       

      (b) Any
        assignment, sale, transfer or other conveyance of the Aircraft by Owner Trustee
        made pursuant to the terms of this Agreement or the Lease shall bind Owner
        Participant and shall be effective to transfer or convey all right, title
        and
        interest of Owner Trustee and Owner Participant in and to the Aircraft. No
        purchaser or other grantee shall be required to inquire as to the authorization,
        necessity, expediency or regularity of such assignment, sale, transfer or
        conveyance, or as to the application of any sale or other proceeds with respect
        thereto by Owner Trustee, as regards Owner Participant.

       

      7.6.5  
        Release
        of Lien of Trust Indenture

       

      Each
        of
        Lessee, Lessor and Mortgagee agrees that in each instance referred to in
        the
        Lease in which a transfer of any property is required to be made by Lessor
        to
        Lessee or any other Person (other than Mortgagee), Mortgagee shall, upon
        request
        of Lessor and compliance with the applicable provisions of the Lease and
        Trust
        Indenture, promptly execute (at Lessee’s cost and expense) such instruments as
        Lessor or Lessee may reasonably request to evidence the release of the Lien
        of
        the Trust Indenture with respect to such property.

       

      7.6.6  
        Non-Recourse

       

      Loan
        Participant and Mortgagee agree that (a) obligations of Owner Trustee under
        the
        Trust Indenture or any other Operative Agreement and with respect to the
        Equipment Notes shall be non-recourse to Owner Participant and to Wells Fargo
        and (b) they will look solely to the income and proceeds from the Trust
        Estate and the Trust Indenture Estate to the extent available for distribution
        to Note Holder or Mortgagee as provided in the Trust Indenture and that neither
        Owner Participant nor Wells Fargo will be personally liable to Loan Participant
        or Mortgagee for any amounts payable by Owner Trustee under the Trust Indenture
        or any other Operative Agreement; provided,
        however,
        that
        the foregoing is not intended nor shall it be construed to limit any recourse
        liability of Owner Participant or Wells Fargo to the extent that such liability
        is expressly set forth in this Agreement or in any of the Operative Agreements
        or arises by reason of the breach of any representation or warranty or covenant
        given by such Person (in the case of Wells Fargo, in its individual
        capacity).

       

      7.6.7  
        Other
        Documents; Amendment

       

      (a) Each
        of
        the Owner Participant and the Owner Trustee hereby agrees with Lessee, the
        Loan
        Participant, and the Mortgagee not to amend, supplement or otherwise modify
        any
        provision of the Trust Agreement in a manner that could materially adversely
        affect such party without the prior written consent of such party (including
        without limitation in the case of such agreement with Lessee, Section 4.2.5
        of
        the Trust Agreement). Notwithstanding the foregoing,

       

      
        
          
          

        

        
          
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      so
        long
        as the Lease has not been terminated or expired, each Participant, the Mortgagee
        and the Owner Trustee hereby agree for the benefit of Lessee that without
        the
        consent of Lessee they will not amend, supplement or otherwise modify
        (i) Article III, Article IX or Sections 2.02 (third
        paragraph), 2.05 or 3.06 (second sentence) of the Trust Indenture, (ii) any
        provision of any Operative Agreement that will affect the stated principal
        amount of or premium or interest on the Equipment Notes or (iii) any other
        provision of the Trust Indenture or Equipment Notes in a manner that could
        materially adversely affect Lessee. Mortgagee and Owner Trustee agree promptly
        to furnish to Lessee copies of any supplement, amendment, waiver or modification
        of any of the Operative Agreements to which Lessee is not a party. Loan
        Participant agrees that it will not take any action in respect of the Trust
        Indenture Estate except through the Mortgagee pursuant to the Trust Indenture
        or
        as otherwise permitted by the Trust Indenture.

       

      (b) Owner
        Trustee agrees to join with Lessee to the extent that action on its part
        is
        necessary or appropriate (i) to cause the following to be duly accomplished
        in accordance with applicable United States federal Law by the time the Aircraft
        is delivered under this Agreement and the Lease: (A) the application for
        registration of the Aircraft in the name of Owner Trustee and (B) all
        related action necessary in order for Lessee to have temporary or permanent
        authority to operate the Aircraft as contemplated by the Lease and
        (ii) forthwith upon delivery of the Aircraft under this Agreement and the
        Lease, to cause all necessary documents to be duly filed for recording in
        accordance with applicable United States federal Law.

       

      7.6.8  
        Consents

       

      Owner
        Participant, Pass Through Trustee, Subordination Agent, Owner Trustee and
        Mortgagee each covenants and agrees, for the benefit of Lessee, that it shall
        not unreasonably withhold its consent to any consent or approval requested
        of it
        or of Owner Trustee or Mortgagee under the terms of any of the Operative
        Agreements which by its terms is not to be unreasonably withheld.

       

      7.6.9  
        Insurance

       

      Each
        of
        Owner Participant, the Pass Through Trustee, the Subordination Agent and
        the
        Owner Trustee agrees not to obtain or maintain insurance for its own account
        as
        permitted by Section 11.2 of the Lease if such insurance would limit or
        otherwise materially adversely affect the coverage of any insurance required
        to
        be obtained or maintained by Lessee pursuant to Section 11 and Annex D
        of the Lease.

       

      7.6.10  Extent
        of Interest of Note Holders

       

      A
        Note
        Holder shall not, as such, have any further interest in, or other right with
        respect to, the Trust Estate or the Trust Indenture Estate when and if the
        principal and Make-Whole Amount, if any, of and interest on the Equipment
        Note
        held by such Holder, and all other sums, then due and payable to such Holder
        hereunder and under any other Operative Agreement, shall have been paid in
        full.

       

       

      
        
          
          

        

        
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      7.6.11 
        Foreign
        Registration

       

      Each
        Participant, Owner Trustee and Mortgagee hereby agree, for the benefit of
        Lessee
        but subject to the provisions of Section 7.1.2 of the Lease: 

      
      

      (a) that
        Lessee shall be entitled to register the Aircraft or cause the Aircraft to
        be
        registered in a country other than the United States subject to compliance
        with
        the following:

       

      
        (i) each
          of
          the following requirements is satisfied:

         

        
          (A)      such
            registration shall be made only after the Tax Attribute Period, unless
            Lessee
            prepays on a lump sum basis calculated pursuant to Section 5(f) of the
            Tax
            Indemnity Agreement any liability due under the Tax Indemnity Agreement
            as a
            result of such registration based upon the assumption that such registration
            would continue for the remainder of the term of the Permitted Sublease
            described
            in clause (C) below, provided, that notwithstanding the foregoing, such
            registration may be made during the taxable year in which the seventh
            anniversary of the Delivery Date occurs so long as the Aircraft is not
“used
            predominantly outside the United States” within the meaning of
            Section 168(g) of the Code during such taxable year;

        

         

        
          (B)    no
            Lease
            Event of Default shall have occurred and be continuing at the time of
            such
            registration;

        

         

        
          (C)    such
            proposed change of registration is made in connection with a Permitted
            Sublease
            to a Permitted Air Carrier; and

        

         

        
          (D)    such
            country is a Permitted Country with which the United States then maintains
            normal diplomatic relations.

        

         

        (ii) the
          Owner
          Trustee, Owner Participant and Mortgagee shall have received an opinion,
          in form
          and substance reasonably satisfactory to the Owner Participant (subject
          to
          customary exceptions), of counsel reasonably satisfactory to the Owner
          Participant and Mortgagee addressed to each such party to the effect
          that:

      

       

      (A)         
        such country would recognize the Owner Trustee’s title to, ownership interest in
        and right to possession of, the Aircraft;

       

      (B)         
        the
        obligations of Lessee, and the rights and remedies of Owner Trustee, under
        the
        Lease are valid, binding and enforceable under the laws of such country (or
        the
        laws of the country to which the laws of such country would refer as the
        applicable governing law);

       

      (C)        
        after
        giving effect to such change in registration, the Lien of the Trust Indenture
        on
        the Owner Trustee’s right, title and interest in and to the Aircraft and the
        Lease shall continue as a valid and duly 

      
        
          
          

        

        
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      perfected
        first priority security interest and all filing, recording or other action
        necessary to protect the same shall have been accomplished (or, if such opinion
        cannot be given at the time of such proposed change in registration because
        such
        change in registration is not yet effective, (1) the opinion shall detail
        what filing, recording or other action is necessary and (2) Owner Trustee
        and the Mortgagee shall have received a certificate from Lessee that all
        possible preparations to accomplish such filing, recording and other action
        shall have been done, and such filing, recording and other action shall be
        accomplished and a supplemental opinion to that effect shall be delivered
        to
        Owner Trustee and the Mortgagee on or prior to the effective date of such
        change
        in registration;

       

      (D)       
        it
        is not necessary, solely as a consequence of such change in registration
        and
        without giving effect to any other activity of Owner Trustee, the Owner
        Participant or the Mortgagee (or any Affiliate thereof), as the case may
        be, for
        Owner Trustee, the Owner Participant or the Mortgagee to qualify to do business
        in such country as a result of such reregistration;

       

      (E)         there
        is
        no tort liability of the owner or lessor or mortgagee of an aircraft not
        in
        possession thereof under the laws of such country (it being agreed that,
        in the
        event such latter opinion cannot be given in a form satisfactory to the Owner
        Participant and Mortgagee, such opinion shall be waived if insurance reasonably
        satisfactory to the Owner Participant and Mortgagee is provided to cover
        such
        risk); and

       

      (F)       
        unless Lessee shall have agreed to provide insurance reasonably satisfactory
        to
        Owner Participant and Mortgagee covering the risk of requisition of use of
        the
        Aircraft by the government of such country (so long as the Aircraft is
        registered under the laws of such country), the laws of such country require
        fair compensation by the government of such country payable in currency freely
        convertible into Dollars and freely removable from such country (without
        license
        or permit, unless Lessee prior to such proposed reregistration has obtained
        such
        license or permit) for the taking or requisition by such government of such
        use.

      
         

        (b) In
          addition, as a condition precedent to any change in registration Lessee
          shall
          have given to Lessor and Mortgagee assurances reasonably satisfactory to
          each of
          them:

      

       

      (i) to
        the
        effect that the provisions of Section 11 of the Lease have been complied
        with after giving effect to such change of registration; and

       

       

      
        
          
          

        

        
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      (ii) of
        the
        payment by Lessee of all reasonable out-of-pocket expenses at no after-tax
        cost
        to any Participant of Lessor, each Participant and Mortgagee in connection
        with
        such change of registry, including, without limitation (1) the reasonable
        fees and disbursements of counsel to Lessee, Lessor and Mortgagee, (2) any
        filing or recording fees, Taxes or similar payments incurred in connection
        with
        the change of registration of the Aircraft and the creation and perfection
        of
        the security interest therein in favor of Mortgagee for the benefit of Note
        Holders, (3) all costs and expenses incurred in connection with any filings
        necessary to continue in the United States the perfection of the security
        interest in the Aircraft and the Lease in favor of Mortgagee for the benefit
        of
        Note Holders and (4) costs in connection with the calculation of the lump
        sum
        payment described in clause (i)(A) of this Section 7.6.11.

       

      7.6.12 
        Other
        Commercial Relations Unaffected

       

      Notwithstanding
        anything to the contrary set forth in any Operative Agreement:

       

      (a) Except
        as
        set forth in the Purchase Agreement Assignment, nothing contained in the
        Operative Agreements shall constitute or be deemed to be a waiver by Lessee
        of
        any rights, remedies or claims it may have against Airframe Manufacturer
        or
        Engine Manufacturer or any subcontractor or supplier of either; and the
        Operative Agreements do not and shall not be construed or deemed to create
        any
        rights, waivers, immunities or indemnities in favor of Airframe Manufacturer,
        Engine Manufacturer or any subcontractor or supplier of either with respect
        to
        any such rights, remedies or claims of Lessee; and

       

      (b) The
        Airframe Manufacturer, by its execution and delivery of the Consent and
        Agreement, shall not be deemed to have waived any rights, remedies or claims
        which Airframe Manufacturer (or any subcontractor or supplier of Airframe
        Manufacturer) may have against Lessee; and the Operative Agreements do not
        and
        shall not be construed or deemed to create any rights, waivers, immunities
        or
        indemnities in favor of Lessee with respect to any such rights, remedies
        or
        claims of Airframe Manufacturer (or any subcontractor or supplier of Airframe
        Manufacturer).

       

      7.6.13 
        Interest
        in Certain Engines

       

      Each
        Participant, Owner Trustee, and Mortgagee agree, for the benefit of each
        of the
        lessor, conditional seller, mortgagee or secured party of any airframe or
        engine
        leased to, or purchased by, Lessee or any Permitted Sublessee subject to
        a
        lease, conditional sale, trust indenture or other security agreement that
        it
        will not acquire or claim, as against such lessor, conditional seller, mortgagee
        or secured party, any right, title or interest in any engine as the result
        of
        such engine being installed on the Airframe at any time while such engine
        is
        subject to such lease, conditional sale, trust indenture or other security
        agreement and owned by such lessor or conditional seller or subject to a
        trust
        indenture or security interest in favor of such mortgagee or secured
        party.

       

       

      
        
          
          

        

        
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      SECTION
        8.  CONFIDENTIALITY

       

      Lessee,
        Owner Participant, Note Holders, Owner Trustee, Mortgagee and Airframe
        Manufacturer shall keep Annexes B, C and D and Schedules 1, 2, 3 and 4
        to the Lease, the Purchase Agreement Assignment and the Tax Indemnity Agreement
        confidential and shall not disclose, or cause to be disclosed, the same to
        any
        other Person, except (A) to prospective and permitted transferees of Lessee’s,
        Owner Participant’s, a Note Holder’s, a Liquidity Provider’s, Owner Trustee’s,
        Mortgagee’s or other Indenture Indemnitee’s interest or their respective counsel
        or special counsel, independent insurance brokers, auditors, or other agents
        who
        agree to hold such information confidential, (B) to Lessee’s, Owner
        Participant’s, a Note Holder’s, a Liquidity Provider’s, Pass Through Trustee’s,
        Owner Trustee’s, Mortgagee’s or other Indenture Indemnitee’s counsel or special
        counsel, independent insurance brokers, auditors, or other agents, Affiliates
        or
        investors who agree to hold such information confidential, (C) as may be
        required by any statute, court or administrative order or decree, legal process
        or governmental ruling or regulation, including those of any applicable
        insurance regulatory bodies (including, without limitation, the National
        Association of Insurance Commissioners), federal or state banking examiners,
        Internal Revenue Service and state and local income tax auditors or any stock
        exchange, (D) with respect to Lessee and Owner Participant, by mutual agreement
        of such parties, (E) with respect to a Note Holder or Pass Through Trustee,
        to a
        nationally recognized rating agency for the purpose of obtaining a rating
        on the
        Equipment Notes or the Pass Through Certificates or to support an NAIC rating
        for the Equipment Notes or the Pass Through Certificates or (F) such other
        Persons as are reasonably deemed necessary by the disclosing party in order
        to
        protect the interests of such party or for the purposes of enforcing such
        documents by such party; provided,
        that
        any and all disclosures permitted by clauses (C), (D), (E) or (F) above
        shall be made only to the extent necessary to meet the specific requirements
        or
        needs of the Persons making such disclosures.

       

      SECTION
        9.  INDEMNIFICATION
        AND EXPENSES

       

      9.1  
General
        Indemnity

       

      9.1.1  
        Indemnity

       

      If
        the
        Closing occurs, Lessee shall indemnify, protect, defend and hold harmless
        each
        Indemnitee from, against and in respect of, and shall pay on a net after-tax
        basis, any and all Expenses of any kind or nature whatsoever that may be
        imposed
        on, incurred by or asserted against any Indemnitee, relating to, resulting
        from,
        or arising out of or in connection with, any one or more of the
        following:

       

      (a) The
        Operative Agreements, the Pass Through Agreements, or the enforcement of
        any of
        the terms of any of the Operative Agreements or the Pass Through
        Agreements;

       

      (b) The
        Aircraft, the Airframe, any Engine or any Part, including, without limitation,
        with respect thereto, (i) the manufacture, design, purchase, acceptance,
        nonacceptance or rejection, ownership, registration, reregistration,
        deregistration, delivery, nondelivery, lease, sublease, assignment, possession,
        use or non-use, operation, maintenance, testing, repair, overhaul, condition,
        alteration, modification, addition, improvement, storage,
        airworthiness,

       

      
        
          
          

        

        
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      replacement,
        repair, sale, substitution, return, abandonment, redelivery or other disposition
        of the Aircraft, any Engine or any Part, (ii) any claim or penalty arising
        out
        of violations of applicable Laws by Lessee (or any Permitted Sublessee),
        (iii)
        tort liability, whether or not arising out of the negligence of any Indemnitee
        (whether active, passive or imputed), (iv) death or property damage of
        passengers, shippers or others, (v) environmental control, noise or pollution
        and (vi) any Liens in respect of the Aircraft, any Engine or any
        Part;

       

      (c) The
        offer, sale, or delivery of any Equipment Notes, Pass Through Certificates
        or
        any interest therein or represented thereby; and

       

      (d) Any
        breach of or failure to perform or observe, or any other noncompliance with,
        any
        covenant or agreement or other obligation to be performed by Lessee under
        any
        Lessee Operative Agreement or any Pass Through Agreement or the falsity of
        any
        representation or warranty of Lessee in any Lessee Operative Agreement or
        any
        Pass Through Agreement other than in the Tax Indemnity Agreement.

       

      9.1.2  
        Exceptions

       

      Notwithstanding
        anything contained in Section 9.1.1, Lessee shall not be required to
        indemnify, protect, defend and hold harmless any Indemnitee pursuant to
        Section 9.1.1 in respect of any Expense of such Indemnitee:

       

      (a) For
        any
        Taxes or a loss of Tax benefit, whether or not Lessee is required to indemnify
        therefor pursuant to Section 9.3 or the Tax Indemnity Agreement;
provided,
        however,
        this
        Section 9.1.1(a) shall not apply to any taxes taken into account in making
        any
        payment on a net after tax basis;

       

      (b) Except
        to
        the extent attributable to acts or events occurring prior thereto, acts or
        events (other than acts or events related to the performance or failure to
        perform by Lessee of its obligations pursuant to the terms of the Lessee
        Operative Agreements) that occur after the earlier of: (i) with respect to
        the Airframe, any Engine or any Part, the return of possession (it being
        understood that the date of the placement of the Aircraft in storage as provided
        in Section 5 of the Lease constitutes the date of return of the Aircraft
        under
        the Lease) of such Airframe, Engine or Part pursuant to the terms of and
        in
        compliance with the Lease (other than pursuant to Section 15 thereof, in
        which
        case Lessee’s liability under this Section 9.1 shall survive for so long as
        Lessor or Mortgagee shall be entitled to exercise remedies under such
        Section 15) or (ii) the termination of the Term in accordance with the
        Lease;

       

      (c) To
        the
        extent attributable to any Transfer (voluntary or involuntary) by or on behalf
        of such Indemnitee of any Equipment Note or interest therein, except (i)
        for
        out-of-pocket costs and expenses incurred as a result of any such Transfer
        pursuant to the exercise of remedies under any Operative Agreement resulting
        from a Lease Event of Default and (ii) as otherwise required by the terms
        of
        Section 2.13 of the Trust Indenture;

       

      (d) To
        the
        extent attributable to any Transfer (voluntary or involuntary) by or on behalf
        of Owner Participant of any interest in the Aircraft, or the Trust Estate
        except
        for costs and expenses incurred as a result of such Transfer, if such Transfer
        arises directly from a Lease Event of Default that shall have occurred and
        be
        continuing;

       

      
        
          
          

        

        
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      (e) To
        the
        extent attributable to the gross negligence or willful misconduct of such
        Indemnitee or any related Indemnitee (as defined below) (other than gross
        negligence or willful misconduct imputed to such person by reason of its
        interest in the Aircraft or any Operative Agreement);

       

      (f) In
        the
        case of Wells Fargo, to the extent attributable to matters enumerated in
        the
        proviso to Section 14;

       

      (g) To
        the
        extent attributable to the incorrectness or breach of any representation
        or
        warranty of such Indemnitee or any related Indemnitee contained in or made
        pursuant to any Operative Agreement or any Pass Through Agreement; 

       

      (h) To
        the
        extent attributable to the failure by such Indemnitee or any related Indemnitee
        to perform or observe any agreement, covenant or condition on its part to
        be
        performed or observed in any Operative Agreement or any Pass Through Agreement;
        

       

      (i) To
        the
        extent attributable to the offer or sale by such Indemnitee or any related
        Indemnitee of any interest in the Aircraft, the Equipment Notes, the Pass
        Through Certificates, the Trust Estate or the Trust Agreement or any similar
        interest, in violation of the Securities Act or other applicable federal,
        state
        or foreign securities Laws (other than any offer or sale thereof caused by
        the
        acts or omissions of Lessee); 

       

      (j) (i) With
        respect to any Indemnitee (other than Mortgagee), to the extent attributable
        to
        the failure of the Mortgagee to distribute funds received and distributable
        by
        it in accordance with the Trust Indenture, (ii) with respect to any
        Indemnitee (other than the Owner Trustee), to the extent attributable to
        the
        failure of the Owner Trustee to distribute funds received and distributable
        by
        it in accordance with the Trust Agreement, (iii) with respect to any
        Indemnitee (other than the Subordination Agent), to the extent attributable
        to
        the failure of the Subordination Agent to distribute funds received and
        distributable by it in accordance with the Intercreditor Agreement,
        (iv) with respect to any Indemnitee (other than the Pass Through Trustee),
        to the extent attributable to the failure of the Pass Through Trustee to
        distribute funds received and distributable by it in accordance with the
        Pass
        Through Trust Agreement, (v) with respect to any Indemnitee (other than the
        Escrow Agent), to the extent attributable to the failure of the Escrow Agent
        to
        pay funds received and payable by it in accordance with any Escrow Agreement,
        (vi) with respect to any Indemnitee (other than the Paying Agent), to the
        extent attributable to the failure of the Paying Agent to distribute funds
        received and distributable by it in accordance with any Escrow Agreement,
        (vii) to the extent attributable to the failure of the Depositary to pay
        funds payable by it in accordance with any Deposit Agreement, (viii) with
        respect to Mortgagee, to the extent attributable to the negligence or willful
        misconduct of Mortgagee in the distribution of funds received and distributable
        by it in accordance with the Trust Indenture, (ix) with respect to Owner
        Trustee, to the extent attributable to the negligence or willful misconduct
        of
        Owner Trustee in the distribution of funds received and distributable by
        it in
        accordance with the Trust Agreement, (x) with respect to the Subordination
        Agent, to the extent attributable to the negligence or willful misconduct
        of the
        Subordination Agent in the distribution of funds received and distributable
        by
        it in accordance with the Intercreditor Agreement, (xi) with respect to the
        Pass Through Trustee, to the extent attributable to the negligence or willful
        misconduct of the Pass Through Trustee in the distribution of funds

       

       

      
        
          
          

        

        
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      received
        and distributable by it in accordance with the Pass Through Trust Agreement,
        (xii) with respect to the Escrow Agent, to the extent attributable to the
        negligence or willful misconduct of the Escrow Agent in the payment of funds
        received and payable by it in accordance with any Escrow Agreement, and
        (xiii) with respect to the Paying Agent, to the extent attributable to the
        negligence or willful misconduct of the Paying Agent in the distribution
        of
        funds received and distributable by it in accordance with any Escrow
        Agreement.

       

      (k) Other
        than during the continuation of a Lease Event of Default, to the extent
        attributable to the authorization or giving or withholding of any future
        amendments, supplements, waivers or consents with respect to any Operative
        Agreement or Pass Through Agreement other than such as have been requested
        by
        Lessee or as are required by or made pursuant to the terms of the Operative
        Agreements or Pass Through Agreements (unless such requirement results from
        the
        actions of an Indemnitee not required by or made pursuant to the Operative
        Agreements or the Pass Through Agreements); 

       

      (l) To
        the
        extent attributable to any amount which any Indemnitee expressly agrees to
        pay
        or such Indemnitee expressly agrees shall not be paid by or be reimbursed
        by
        Lessee;

       

      (m) To
        the
        extent that it is an ordinary and usual operating or overhead
        expense;

       

      (n) With
        respect to the Owner Participant or the Owner Trustee, or any related
        Indemnitee, to the extent attributable to the deregistration of the Aircraft
        under the Act as a result of Owner Participant’s or Owner Trustee’s (or any
        related Indemnitee of either) not being a Citizen of the United States as
        a
        result of any act (other than reregistration of the Aircraft pursuant to
        Section 7.1.2 of the Lease) of Owner Participant or Owner Trustee, or any
        related Indemnitee of either of the foregoing (not taken at the request of
        the
        Lessee);

       

      (o) For
        any
        Lessor Lien attributable to such Indemnitee or any related
        Indemnitee;

       

      (p) If
        another provision of an Operative Agreement or a Pass Through Agreement
        specifies the extent of Lessee’s responsibility or obligation with respect to
        such Expense, to the extent arising from other than failure of Lessee to
        comply
        with such specified responsibility or obligation;

       

      (q) To
        the
        extent it is a Transaction Expense;

       

      (r) To
        the
        extent constituting principal, Make-Whole Amount or interest on the Equipment
        Notes attributable solely to an Event of Default not constituting a Lease
        Event
        of Default; or

       

      (s) To
        the
        extent incurred by or asserted against an Indemnitee as a result of any
“prohibited transaction”, within the meaning of Section 406 of ERISA or Section
        4975(c)(1) of the Code; or

       

      (t) To
        the
        extent not included in the definition of Supplemental Rent as a result of
        the
        provisions of clause (e) of such definition.

       

       

      
        
          
          

        

        
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      For
        purposes of this Section 9.1, a Person shall be considered a “related”
Indemnitee with respect to an Indemnitee if such Person is an Affiliate or
        employer of such Indemnitee, a director, officer, employee, agent, or servant
        of
        such Indemnitee or any such Affiliate or a successor or permitted assignee
        of
        any of the foregoing.

       

      9.1.3  
        Separate
        Agreement

       

      This
        Agreement constitutes a separate agreement with respect to each Indemnitee
        and
        is enforceable directly by each such Indemnitee.

       

      9.1.4  
        Notice

       

      If
        a
        claim for any Expense that an Indemnitee shall be indemnified against under
        this
        Section 9.1 is made, such Indemnitee shall give prompt written notice
        thereof to Lessee. Notwithstanding the foregoing, the failure of any Indemnitee
        to notify Lessee as provided in this Section 9.1.4, or in Section 9.1.5,
        shall not release Lessee from any of its obligations to indemnify such
        Indemnitee hereunder, except to the extent that such failure results in an
        additional Expense to Lessee (in which event Lessee shall not be responsible
        for
        such additional Expense) or materially impairs Lessee’s ability to contest such
        claim.

       

      9.1.5  
        Notice
        of Proceedings; Defense of Claims; Limitations

       

      (a) In
        case
        any action, suit or proceeding shall be brought against any Indemnitee for
        which
        Lessee is responsible under this Section 9.1, such Indemnitee shall notify
        Lessee of the commencement thereof and Lessee may, at its expense, participate
        in and to the extent that it shall wish (subject to the provisions of the
        following paragraph), assume and control the defense thereof and, subject
        to
        Section 9.1.5(c), settle or compromise the same.

       

      (b) Lessee
        or
        its insurer(s) shall have the right, at its or their expense, to investigate
        or,
        if Lessee or its insurer(s) shall agree in writing not to dispute liability
        to
        the Indemnitee giving notice of such action, suit or proceeding under this
        Section 9.1.5 for indemnification hereunder or under any insurance policies
        pursuant to which coverage is sought, control the defense of, any action,
        suit
        or proceeding, relating to any Expense for which indemnification is sought
        pursuant to this Section 9.1, and each Indemnitee shall cooperate with
        Lessee or its insurer(s) with respect thereto; provided,
        that
        Lessee shall not be entitled to control the defense of any such action, suit,
        or
        proceeding or compromise any such Expense (i) during the continuance of any
        Lease Event of Default arising under Section 14.1 of the Lease, (ii) if
        such proceedings would entail a material risk of the sale, forfeiture or
        loss of
        the Aircraft or (iii) if such proceedings would entail a risk of criminal
        liability or greater than de minimis risk of material civil penalties being
        imposed on such Indemnitee. In connection with any such action, suit or
        proceeding being controlled by Lessee, such Indemnitee shall have the right
        to
        participate therein, at its sole cost and expense, with counsel reasonably
        satisfactory to Lessee; provided,
        that
        such Indemnitee’s participation does not, in the reasonable opinion of the
        independent counsel appointed by the Lessee or its insurers to conduct such
        proceedings, interfere with the defense of such case.

       

      (c) In
        no
        event shall any Indemnitee enter into a settlement or other compromise with
        respect to any Expense without the prior written consent of Lessee, which
        consent shall not be

       

       

      
        
          
          

        

        
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      unreasonably
        withheld or delayed, unless such Indemnitee waives its right to be indemnified
        with respect to such Expense under this Section 9.1.

       

      (d) In
        the
        case of any Expense indemnified by the Lessee hereunder which is covered
        by a
        policy of insurance maintained by Lessee pursuant to Section 11 of the Lease,
        at
        Lessee’s expense, each Indemnitee agrees to cooperate with the insurers in the
        exercise of their rights to investigate, defend or compromise such Expense
        as
        may be required to retain the benefits of such insurance with respect to
        such
        Expense.

       

      (e) If
        an
        Indemnitee is not a party to this Agreement, Lessee may require such Indemnitee
        to agree in writing to the terms of this Section 9 and Section 15.8
        prior to making any payment to such Indemnitee under this
        Section 9.

       

      (f) Nothing
        herein shall be deemed to be an assumption by Lessee of obligations of Owner
        Trustee with respect to, or a guarantee by Lessee of, any amounts payable
        by
        Owner Trustee upon Equipment Notes or a guarantee of any residual value of
        the
        Aircraft.

       

      (g) Nothing
        contained in this Section 9.1.5 shall be deemed to require an Indemnitee to
        contest any Expense or to assume responsibility for or control of any judicial
        proceeding with respect thereto.

       

      9.1.6  
        Information

       

      Lessee
        will provide the relevant Indemnitee with such information not within the
        control of such Indemnitee, as is in Lessee’s control or is reasonably available
        to Lessee, which such Indemnitee may reasonably request and will otherwise
        cooperate with such Indemnitee so as to enable such Indemnitee to fulfill
        its
        obligations under Section 9.1.5. The Indemnitee shall supply Lessee with
        such information not within the control of Lessee, as is in such Indemnitee’s
        control or is reasonably available to such Indemnitee, which Lessee may
        reasonably request to control or participate in any proceeding to the extent
        permitted by Section 9.1.5.

       

      9.1.7  
        Effect
        of Other Indemnities; Subrogation; Further Assurances

       

      Upon
        the
        payment in full by Lessee of any indemnity provided for under this Agreement,
        Lessee, without any further action and to the full extent permitted by Law,
        will
        be subrogated to all rights and remedies of the person indemnified (other
        than
        with respect to any of such Indemnitee’s insurance policies or in connection
        with any indemnity claim such Indemnitee may have under Section 5.03 or
        7.01 of the Trust Indenture or Section 5.3 or 7 of the Trust Agreement) in
        respect of the matter as to which such indemnity was paid. Each Indemnitee
        will
        give such further assurances or agreements and cooperate with Lessee to permit
        Lessee to pursue such claims, if any, to the extent reasonably requested
        by
        Lessee and at Lessee’s expense.

       

      9.1.8  
        Refunds

       

      If
        an
        Indemnitee receives any refund, in whole or in part, with respect to any
        Expense
        paid by Lessee hereunder, it will promptly pay the amount refunded (but not
        an
        amount in excess of the amount Lessee or any of its insurers has paid in
        respect
        of such Expense) over to Lessee

       

       

      
        
          
          

        

        
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      unless
        a
        Lease Event of Default shall have occurred and be continuing, in which case
        such
        amounts shall be paid over to Owner Trustee (or, so long as the Trust Indenture
        shall not have been discharged, to Mortgagee) to hold as security for Lessee’s
        obligations under the Lessee Operative Agreements or, if requested by Lessee,
        applied to satisfy such obligations.

       

      9.2  
Expenses

       

      9.2.1  
        Transaction
        Expenses

       

      Owner
        Participant shall pay all Transaction Expenses (which shall exclude the ongoing
        fees, disbursements and expenses of Mortgagee and the Owner Trustee), up
        to an
        aggregate amount equal to the Expense Limit. Airframe Manufacturer shall
        pay all
        Transaction Expenses in excess of the Expense Limit and the ongoing fees,
        disbursements and expenses of Mortgagee and the Owner Trustee, provided that
        if
        Airframe Manufacturer shall fail to make any payment when due of the ongoing
        fees, disbursements and expenses of Mortgagee or Owner Trustee, Lessee shall
        make such payment if so requested by Mortgagee or Owner Trustee, as applicable,
        in which case Airframe Manufacturer shall be obligated to immediately reimburse
        Lessee for any payment made by Lessee pursuant to this sentence. Lessee shall
        have no liability or obligation with respect to Transaction Expenses, except
        as
        provided in the preceding sentence.

       

      9.2.2  
        Payment
        of Other Expenses

       

      Lessee
        will be responsible for the fees and charges of its counsel incurred in
        connection with the preparation, execution and delivery of the Operative
        Agreements. All out-of-pocket costs and expenses of Lessee (including, without
        limitation, reasonable attorney’s fees and charges) incurred in performance of
        Sections 7.1.3(a), (b) and (c) (other than with respect to the first
        parenthetical of Section 7.1.3(c)) to the extent constituting Transaction
        Expenses, shall be paid pursuant to Section 9.2.1 and, otherwise, shall be
        paid
        by Airframe Manufacturer. Airframe Manufacturer shall pay all costs and expenses
        incurred by it in connection with the Operative Agreements.

       

      9.3  
General
        Tax Indemnity

       

      9.3.1  
        General

       

      Except
        as
        provided in Section 9.3.2, Lessee agrees that each payment of Rent paid by
        Lessee pursuant to the Lease, and any other payment or indemnity paid by
        Lessee
        to a Tax Indemnitee under any Operative Agreement, shall be free of all
        withholdings or deductions with respect to Taxes of any nature (other than
        U.S.
        federal withholding taxes on, based on or measured by gross or net income),
        and
        in the event that Lessee shall be required by applicable law to make any
        such
        withholding or deduction for any such payment (x) Lessee shall make all such
        withholdings or deductions, (y) the amount payable by Lessee shall be increased
        so that after making all required withholdings or deductions such Tax Indemnitee
        receives (at no after-Tax cost to the Tax Indemnitee) the same amount that
        it
        would have received had no such withholdings or deductions been made, and
        (z) Lessee shall pay the full amount withheld or deducted to the relevant
        Taxing Authority in accordance with applicable law. Lessee further agrees
        that,
        in the event it is required to withhold from any payment of Basic Rent,
        Termination Value, Stipulated Loss Value (and amounts determined by reference
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      payable
        upon exercise of Lessee’s purchase option pursuant to Section 17.3 of the Lease,
        any Tax imposed upon Owner Participant or Owner Trustee (including any
        withholding Tax based on income or receipts of Owner Participant or Owner
        Trustee) and such Tax is excluded from indemnification pursuant to
        Section 9.3.2, Lessee shall pay such additional amount, if any, required so
        that the total amount paid by Lessee (after making all required withholdings)
        is
        equal to (assuming timely payment of the Equipment Notes prior to the relevant
        Payment Date) the aggregate principal amount of scheduled installments due
        on
        the Equipment Notes outstanding on the relevant Payment Date, together with
        accrued and unpaid interest, due on the Equipment Notes; Owner Participant
        or
        Owner Trustee, as the case may be, shall reimburse Lessee for any such
        additional amounts within two Business Days after demand therefor. Except
        as
        provided in Section 9.3.2 and whether or not any of the transactions
        contemplated hereby are consummated, Lessee shall pay, indemnify, protect,
        defend and hold each Tax Indemnitee harmless from all Taxes imposed by any
        Taxing Authority that may from time to time be imposed on or asserted against
        any Tax Indemnitee or the Aircraft, the Airframe, any Engine or any Part
        or any
        interest in any of the foregoing (whether or not indemnified against by any
        other Person), upon or with respect to the Operative Agreements or the
        transactions or payments contemplated thereby, including but not limited
        to any
        Tax imposed upon or with respect to (x) the Aircraft, the Airframe, any
        Engine, any Part, any Operative Agreement (including without limitation any
        Equipment Notes) or any data or any other thing delivered or to be delivered
        under an Operative Agreement, (y) the purchase, manufacture, acceptance,
        rejection, sale, transfer of title, return, ownership, mortgaging, delivery,
        transport, charter, rental, lease, re-lease, sublease, assignment, possession,
        repossession, presence, use, condition, storage, preparation, maintenance,
        modification, alteration, improvement, operation, registration, transfer
        or
        change of registration, reregistration, repair, replacement, overhaul, location,
        control, the imposition of any Lien (other than a Lessor Lien), financing,
        refinancing requested by the Lessee, abandonment or other disposition of
        the
        Aircraft, the Airframe, any Engine, any Part, any data or any other thing
        delivered or to be delivered under an Operative Agreement, or (z) rent,
        interest, fees or any other income, proceeds, receipts or earnings, whether
        actual or deemed, arising upon, in connection with, or in respect of, any
        of the
        Operative Agreements (including the property or income or other proceeds
        with
        respect to property held as part of the Trust Estate) or the transactions
        contemplated thereby.

       

      9.3.2  
        Certain
        Exceptions

       

      The
        provisions of Section 9.3.1 shall not apply to, and Lessee shall have no
        liability hereunder for, Taxes:

       

      (a) imposed
        on a Tax Indemnitee by the federal government of the United States or any
        Taxing
        Authority of any jurisdiction within the United States in which such Tax
        Indemnitee is incorporated or maintains its principal place of business or
        is
        otherwise subject to Taxes of such type as a result of transactions or
        activities by such Tax Indemnitee or its Affiliates that are independent
        of the
        transactions and activities contemplated by the Operative Agreements (i)
        on,
        based on, or measured by, gross or net income or gross or net receipts,
        including capital gains taxes, excess profits taxes, minimum taxes from tax
        preferences, alternative minimum taxes, branch profits taxes, accumulated
        earnings taxes, personal holding company taxes, succession taxes and estate
        taxes, and any withholding taxes on, based on or measured by gross or net
        income
        or receipts or (ii) on, or with respect to, or measured by, capital or net
        worth
        or in the

       

       

      
        
          
          

        

        
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       nature
        of a franchise tax or a tax for the privilege of doing business (other than,
        in
        the case of clause (i) or (ii), sales, use, license or property Taxes, Taxes
        in
        the nature of sales or use taxes, value added taxes imposed in lieu of any
        of
        the foregoing, airport excise taxes or any excise taxes imposed in the nature
        of
        or in lieu of any of the foregoing and other than, in the case of clause
        (ii),
        any doing business taxes imposed by a taxing authority in any jurisdiction
        (other than the jurisdiction within which such Tax Indemnitee is incorporated
        or
        maintains its principal place of business) if such doing business taxes
        attributable to the transactions contemplated by the Operative Agreements
        were
        subject to indemnity pursuant to the provisions of this clause 9.3.2(a) (without
        regard to this parenthetical) solely as a result of the usage or location
        of the
        Aircraft in such jurisdiction by a Lessee Person when such Tax Indemnitee
        was
        not incorporated or doing business or otherwise subject to Taxes of such
        type in
        such jurisdiction, if in a subsequent taxable period such Indemnitee becomes
        subject to Taxes of such type as a result of activities or transactions other
        than those contemplated by the Operative Agreements, to the extent that such
        taxes (and in an amount no more than the amount of such Taxes that) would
        have
        continued to be imposed solely as a result of the usage or location of the
        Aircraft by a Lessee Person in such jurisdiction in the absence of any
        additional nexus between such Tax Indemnitee and such
        jurisdiction);

       

      (b) imposed
        as a result of the replacement of the existing financing agreements with
        the
        Operative Agreements and the Express Sublease or the issuance of the Equipment
        Notes;

       

      (c) on,
        or
        with respect to, or measured by, any trustee fees, commissions or compensation
        received by Owner Trustee, Pass Through Trustee, Subordination Agent or
        Mortgagee;

       

      (d) on
        the
        Trust or the Trust Estate that result from treatment of the Trust or the
        Trust
        Estate as an entity, such as a corporation, separate and apart from the Owner
        Participant;

       

      (e) that
        are
        being contested as provided in Section 9.3.4 hereof, for so long as such
        contest
        is continuing;

       

      (f) imposed
        on any Tax Indemnitee to the extent that such Taxes result from the gross
        negligence or willful misconduct of such Tax Indemnitee, a related Tax
        Indemnitee or any Affiliate thereof;

       

      (g) imposed
        on or with respect to a Tax Indemnitee (including the transferee in those
        cases
        in which the Tax on transfer is imposed on, or is collected from, the
        transferee) as a result of a transfer or other disposition (including a deemed
        transfer or disposition) by such Tax Indemnitee or a related Tax Indemnitee
        (or,
        in the case of the Owner Participant, by Owner Trustee (unless requested
        by the
        Lessee), or, in the case of Taxes imposed on a transferee, by the transferor)
        of
        any interest in the Aircraft, the Airframe, any Engine or any Part, the Rent
        (other than the assignment of Rent to the Mortgagee pursuant to the Trust
        Indenture), the Trust, the Trust Estate, the Trust Indenture Estate, the
        Lease
        or any interest arising under the Operative Agreements or any Equipment Note
        or
        a transfer or disposition (including a deemed transfer or disposition) of
        any
        interest in a Tax Indemnitee (other than (A) a substitution or replacement
        of
        the Aircraft, the Airframe, any Engine or any Part by a Lessee Person that
        is
        treated for Tax purposes as a transfer or disposition, (B) a transfer pursuant
        to an exercise of remedies upon a

       

       

      
        
          
          

        

        
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       Lease
        Event of Default that shall have occurred and have been continuing, or
        (C) a transfer to Lessee pursuant to Section 17.3 of the
        Lease);

       

      (h) except
        with respect to gross-ups, imposed subsequent to (and not in respect of)
        a
        transfer or other disposition described in paragraph (g) above and not described
        in the last parenthetical of such paragraph (g) and in excess of those that
        would have been imposed had there not been a transfer or other disposition
        by or
        to such Tax Indemnitee or a related Tax Indemnitee described in
        paragraph (g) above;

       

      (i) imposed
        on the Owner Participant and indemnified by Lessee pursuant to the Tax Indemnity
        Agreement;

       

      (j) imposed
        with respect to any period after the expiration or earlier termination of
        the
        Term and, if required pursuant to the terms of the Lease, the return of
        possession of the Aircraft to Lessor or placement in storage at the request
        of
        Lessor in accordance with the Lease (provided that this exclusion (j) shall
        not apply to Taxes imposed after such period arising as a result of events
        occurring prior to such expiration or earlier termination);

       

      (k) consisting
        of any interest, penalties or additions to tax imposed on a Tax Indemnitee
        resulting from a failure of such Tax Indemnitee or a related Tax Indemnitee
        to
        file any return properly and timely, unless such failure shall be caused
        by the
        failure of Lessee to fulfill its obligations, if any, under Section 9.3.6
        with respect to such return, provided
        that if
        any such return is required to be filed in a jurisdiction outside the United
        States, which return would not have been required to be filed in the absence
        of
        the transactions contemplated under the Operative Agreements or Lessee’s
        transactions or activities in such jurisdiction, this exclusion shall not
        apply
        if (A) Lessee has not informed the Tax Indemnitee in writing of the need
        to file
        such return at least 30 days prior to the due date thereof (or such shorter
        period as would reasonably allow the Tax Indemnitee to file such return if,
        under the circumstances, the Lessee could not have reasonably informed the
        Tax
        Indemnitee of the need to file at least 30 days prior to the due date thereof),
        or (B) the Tax Indemnitee had determined in good faith that such filing would
        subject it or any Affiliate to adverse consequences in such jurisdiction
        for
        which it had not been (and would not have been) indemnified; 

       

      (l) resulting
        from, or that would not have been imposed but for, any Lessor Liens arising
        as a
        result of claims against, or acts or omissions of, or otherwise attributable
        to
        such Tax Indemnitee or a related Tax Indemnitee;

       

      (m) imposed
        on any Tax Indemnitee as a result of the breach by such Tax Indemnitee or
        a
        related Tax Indemnitee of any covenant of such Tax Indemnitee or any Affiliate
        thereof contained in any Operative Agreement or the inaccuracy of any
        representation or warranty by such Tax Indemnitee or any Affiliate thereof
        in
        any Operative Agreement;

       

      (n) in
        the
        nature of an intangible or similar Tax (i) upon or with respect to the value
        or
        principal amount of the interest of Loan Participant or any Note Holder in
        any
        Equipment Note or the loan evidenced thereby or (ii) upon or with respect
        to the
        value of the interest of the Owner Participant in the Trust Estate or the
        Trust,
        in each case only if such Taxes are in the nature of franchise Taxes or result
        from the Tax Indemnitee doing business in the taxing

      
        
          
          

        

        
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      jurisdiction
        and are imposed because of the place of incorporation or the activities
        unrelated to the transactions contemplated by the Operative Agreements in
        the
        taxing jurisdiction of such Tax Indemnitee;

       

      (o) that
        are
        included in Lessor’s Cost and paid to the appropriate Taxing Authority;

       

      (p) imposed
        on a Tax Indemnitee by a Taxing Authority of a jurisdiction outside the United
        States within which such Tax Indemnitee is incorporated or maintains its
        principal place of business or to the extent that such Taxes would not have
        been
        imposed but for a connection between the Tax Indemnitee or a related Tax
        Indemnitee and such jurisdiction imposing such Tax unrelated to the transactions
        contemplated by the Operative Agreements; or

       

      (q) Taxes
        relating to ERISA or Section 4975 of the Code.

       

      For
        purposes hereof, a Tax Indemnitee and any other Tax Indemnitees that are
        successors, assigns, agents, servants or Affiliates of such Tax Indemnitee
        shall
        be related Tax Indemnitees.

       

      9.3.3  
        Payment

       

      (a) Lessee’s
        indemnity obligation to a Tax Indemnitee under this Section 9.3 shall equal
        the
        amount which, after taking into account any Tax imposed upon the receipt
        or
        accrual of the amounts payable under this Section 9.3 and any tax benefits
        actually recognized by such Tax Indemnitee as a result of the indemnifiable
        Tax
        (including, without limitation, any benefits recognized as a result of an
        indemnifiable Tax being utilized by such Tax Indemnitee as a credit against
        Taxes not indemnifiable under this Section 9.3), shall equal the amount of
        the
        Tax indemnifiable under this Section 9.3. The loss, disallowance or recapture
        of
        such tax benefits taken into account by such Tax Indemnitee shall be treated
        as
        a Tax subject to indemnity under this Section 9.3.1 without regard to the
        provisions of Section 9.3.2 (other than Section 9.3.2(f)). 

       

      (b) At
        Lessee’s request, the computation of the amount of any indemnity payment owed by
        Lessee or any amount owed by a Tax Indemnitee to Lessee pursuant to this
        Section
        9.3 shall be verified and certified by an independent public accounting firm
        selected by such Tax Indemnitee and reasonably satisfactory to Lessee. Such
        verification shall be binding. The costs of such verification (including
        the fee
        of such public accounting firm) shall be borne by Lessee unless such
        verification shall result in an adjustment in Lessee’s favor of 5% or more of
        the net present value (computed using a discount rate equal to the Debt Rate,
        compounded monthly) of the payment as computed by such Tax Indemnitee, in
        which
        case the costs shall be paid by such Tax Indemnitee.

       

      (c) Each
        Tax
        Indemnitee shall provide Lessee with such certifications, information and
        documentation as shall be in such Tax Indemnitee’s possession and as shall be
        reasonably requested by Lessee to minimize any indemnity payment pursuant
        to
        this Section 9.3; provided, that notwithstanding anything to the contrary
        contained herein, no Tax Indemnitee shall be required to provide Lessee with
        any
        Tax returns.

       

      (d) Each
        Tax
        Indemnitee shall promptly forward to Lessee any written notice, bill or advice
        received by it from any Taxing Authority concerning any Tax for which it
        seeks

       

       

      
        
          
          

        

        
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      indemnification
        under this Section 9.3. Lessee shall pay any amount for which it is liable
        pursuant to this Section 9.3 directly to the appropriate Taxing Authority
        if
        legally permissible or upon demand of a Tax Indemnitee, to such Tax Indemnitee
        within 30 days of such demand (or, if a contest occurs in accordance with
        Section 9.3.4, within 30 days after a Final Determination (as defined below)),
        but in no event more than two Business Days prior to the date the Tax to
        which
        such amount payable hereunder relates is due. If requested by a Tax Indemnitee
        in writing, Lessee shall furnish to the appropriate Tax Indemnitee the original
        or a certified copy of a receipt for Lessee’s payment of any Tax paid by Lessee
        or such other evidence of payment of such Tax as is acceptable to such Tax
        Indemnitee. Lessee shall also furnish promptly upon written request such
        data as
        any Tax Indemnitee may reasonably require to enable such Tax Indemnitee to
        comply with the requirements of any taxing jurisdiction unless such data
        is not
        reasonably available to Lessee or, unless such data is specifically requested
        by
        a Taxing Authority, is not customarily furnished by domestic air carriers
        under
        similar circumstances. For purposes of this Section 9.3, a “Final Determination”
shall mean (i) a decision, judgment, decree or other order by any court of
        competent jurisdiction that occurs pursuant to the provisions of Section
        9.3.4,
        which decision, judgment, decree or other order has become final and
        unappealable (by law or by Lessee hereunder), (ii) a closing agreement or
        settlement agreement entered into in accordance with Section 9.3.4 that has
        become binding and is not subject to further review or appeal (absent fraud,
        misrepresentation, etc.), or (iii) the termination of administrative proceedings
        and the expiration of the time for instituting a claim in a court
        proceeding.

       

      (e) If
        any
        Tax Indemnitee shall actually realize a tax savings by reason of any Tax
        paid or
        indemnified by Lessee pursuant to this Section 9.3 (whether such tax savings
        shall be by means of a foreign tax credit, depreciation or cost recovery
        deduction or otherwise) and such savings is not otherwise taken into account
        in
        computing such payment or indemnity, such Tax Indemnitee shall pay to Lessee
        (within 30 days after the realization of such tax savings) an amount equal
        to
        the lesser of (i) the amount of such tax savings, plus any additional tax
        savings recognized as the result of any payment made pursuant to this sentence,
        when, as, if, and to the extent, realized or (ii) the amount of all payments
        (other than in respect of contest costs) pursuant to this Section 9.3 by
        Lessee
        to such Tax Indemnitee (less any payments previously made by such Tax Indemnitee
        to Lessee pursuant to this Section 9.3.3 (e)) (and the excess, if any, of
        the
        amount described in clause (i) over the amount described in clause (ii) shall
        be
        carried forward and applied to reduce pro tanto any subsequent obligations
        of
        Lessee to make payments to such Tax Indemnitee pursuant to this Section 9.3);
        provided, that such Tax Indemnitee shall not be required to make any payment
        pursuant to this sentence so long as a Lease Event of Default of a monetary
        nature has occurred and is continuing. If a tax benefit is later disallowed
        or
        denied, the disallowance or denial shall be treated as a Tax indemnifiable
        under
        Section 9.3.1 without regard to the provisions of Section 9.3.2 (other than
        Section 9.3.2 (f)). Each such Tax Indemnitee shall in good faith use reasonable
        efforts in filing its tax returns and in dealing with Taxing Authorities
        to seek
        and claim any such tax benefit.

       

      (f) For
        purposes of this Section 9.3, items of foreign Tax of any Tax Indemnitee
        shall
        be deemed to be utilized by such Tax Indemnitee as credits or deductions
        for any
        taxable year in accordance with the following priorities:

       

      (x) First,
        all utilizable foreign Taxes (taking into account the limitations of Section
        904(d) of the Code) other than those described in clause (y) below;

       

       

      
        
          
          

        

        
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      (y) Second,
        all utilizable foreign Taxes (taking into account the limitations of Section
        904(d) of the Code) arising out of the transactions contemplated by the
        Operative Agreements and other equipment leasing transactions to the extent
        such
        Tax Indemnitee is indemnified or held harmless for such Taxes by the Lessee
        or a
        lessee on a pari passu basis.

       

      9.3.4  
        Contest

       

      (a) If
        a
        written claim is made against a Tax Indemnitee for Taxes with respect to
        which
        Lessee could be liable for payment or indemnity hereunder, or if a Tax
        Indemnitee makes a determination that a Tax is due for which Lessee could
        have
        an indemnity obligation hereunder, such Tax Indemnitee shall promptly give
        Lessee notice in writing of such claim (provided, that failure to so notify
        Lessee shall not relieve Lessee of its indemnity obligations hereunder unless
        such failure to notify forecloses Lessee’s rights to require a contest of such
        claim) and shall take no action with respect to such claim without the prior
        written consent of Lessee for 30 days following the receipt of such notice
        by
        Lessee; provided, that, in the case of a claim made against a Tax Indemnitee,
        if
        such Tax Indemnitee shall be required by law to take action prior to the
        end of
        such 30-day period, such Tax Indemnitee shall, in such notice to Lessee,
        so
        inform Lessee, and such Tax Indemnitee shall take no action for as long as
        it is
        legally able to do so (it being understood that a Tax Indemnitee shall be
        entitled to pay the Tax claimed and sue for a refund if (i)(A) the failure
        to so pay the Tax would result in substantial penalties (unless immediately
        reimbursed by Lessee) and the act of paying the Tax would not materially
        prejudice the right to contest or (B) the failure to so pay would result
        in
        criminal penalties and (ii) such Tax Indemnitee shall take any action so
        required in connection with so paying the Tax in a manner that, in its good
        faith opinion, is the least prejudicial to the pursuit of the contest). In
        addition, such Tax Indemnitee shall (provided, that Lessee shall have agreed
        to
        keep such information confidential other than to the extent necessary in
        order
        to contest the claim) furnish Lessee with copies of any requests for information
        from any Taxing Authority relating to such Taxes with respect to which Lessee
        may be required to indemnify hereunder. If requested by Lessee in writing
        within
        30 days after its receipt of such notice, such Tax Indemnitee shall, at the
        expense of Lessee (including, without limitation, all reasonable costs, expenses
        and reasonable attorneys’ and accountants’ fees and disbursements), in good
        faith contest (or, if permitted by applicable law to be contested by the
        Lessee
        in its own name, allow Lessee to contest) through appropriate administrative
        and
        judicial proceedings the validity, applicability or amount of such Taxes
        by (I)
        resisting payment thereof, (II) not paying the same except under protest
        if
        protest is necessary and proper or (III) if the payment is made, using
        reasonable efforts to obtain a refund thereof in an appropriate administrative
        and/or judicial proceeding. If requested to do so by Lessee, the Tax Indemnitee
        shall appeal any adverse administrative or judicial decision, except that
        the
        Tax Indemnitee shall not be required to pursue any appeals to the United
        States
        Supreme Court. If and to the extent the Tax Indemnitee is able to separate
        the
        contested issue or issues from other issues arising in the same administrative
        or judicial proceeding that are unrelated to the transactions contemplated
        by
        the Operative Agreements without, in the good faith judgment of such Tax
        Indemnitee, adversely affecting such Tax Indemnitee, such Tax Indemnitee
        shall
        permit Lessee to contest such matter in its own name, if permitted by applicable
        law, and shall provide to Lessee (at Lessee’s cost and expense) such information
        or data that is in such Tax Indemnitee’s control or possession that is
        reasonably necessary to conduct such contest (other than such Tax Indemnitee’s
        federal income tax returns), and Lessee shall keep such Tax Indemnitee
        reasonably informed concerning the progress of such contest and shall provide
        such

       

       

      
        
          
          

        

        
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      Tax
        Indemnitee with copies of all submissions and judicial and administrative
        proceedings. In the case of a contest controlled by a Tax Indemnitee, such
        Tax
        Indemnitee shall consult with Lessee in good faith regarding the manner of
        contesting such claim and shall keep Lessee reasonably informed regarding
        the
        progress of such contest. A Tax Indemnitee shall not fail to take any action
        expressly required by this Section 9.3.4 (including, without limitation,
        any
        action regarding any appeal of an adverse determination with respect to any
        claim) or settle or compromise any claim without the prior written consent
        of
        the Lessee (except as contemplated by Section 9.3.4(b) or (c)).

       

      (b) Notwithstanding
        the foregoing, in no event shall a Tax Indemnitee be required to pursue any
        contest (or to permit Lessee to pursue any contest) unless (i) Lessee shall
        have
        agreed to pay such Tax Indemnitee on demand all reasonable costs and expenses
        incurred by such Tax Indemnitee in connection with contesting such Taxes,
        including, without limitation, all reasonable out of pocket costs and expenses
        and reasonable attorneys’ and accountants’ fees and disbursements, (ii) if such
        contest shall involve the payment of the claim, Lessee shall advance the
        amount
        thereof (to the extent indemnified hereunder) plus interest, penalties and
        additions to tax with respect thereto that are required to be paid prior
        to the
        commencement of such contest on an interest-free and after-Tax basis to such
        Tax
        Indemnitee (and such Tax Indemnitee shall promptly pay to the Lessee any
        net
        realized tax benefits resulting from such advance including any tax benefits
        resulting from making such payment), (iii) such Tax Indemnitee shall have
        reasonably determined that the action to be taken will not result in any
        material risk of forfeiture, sale or loss of the Aircraft (unless Lessee
        shall
        have made provisions to protect the interests of any such Tax Indemnitee
        and the
        Owner Participant in a manner reasonably satisfactory to such Tax Indemnitee
        and
        the Owner Participant) (provided, that such Tax Indemnitee agrees to notify
        Lessee in writing promptly after it becomes aware of any such risk), (iv)
        no
        Lease Event of Default shall have occurred and be continuing unless Lessee
        has
        provided adequate security for its obligations hereunder by advancing to
        such
        Tax Indemnitee before proceeding or continuing with such contest, the amount
        of
        the Tax being contested, plus any interest and penalties and an amount estimated
        in good faith by such Tax Indemnitee for expenses, and (v) prior to commencing
        any judicial action controlled by Lessee, Lessee shall have acknowledged
        its
        liability for such claim hereunder, provided that Lessee shall not be bound
        by
        its acknowledgment if the Final Determination articulates conclusions of
        law and
        fact that demonstrate that Lessee has no liability for the contested amounts
        hereunder. Notwithstanding the foregoing, if any Tax Indemnitee shall release,
        waive, compromise or settle any claim which may be indemnifiable by Lessee
        pursuant to this Section 9.3 without the written permission of Lessee, Lessee’s
        obligation to indemnify such Tax Indemnitee with respect to such claim (and
        all
        directly related claims and claims based on the outcome of such claim) shall
        terminate, subject to Section 9.3.4(c), and subject to Section 9.3.4(c),
        such
        Tax Indemnitee shall repay to Lessee any amount previously paid or advanced
        to
        such Tax Indemnitee with respect to such claim (other then contest costs),
        plus
        interest at the rate that would have been payable by the relevant Taxing
        Authority with respect to a refund of such Tax.

       

      (c) Notwithstanding
        anything contained in this Section 9.3, a Tax Indemnitee will not be required
        to
        contest the imposition of any Tax and shall be permitted to settle or compromise
        any claim without Lessee’s consent if such Tax Indemnitee (i) shall waive its
        right to indemnity under this Section 9.3 with respect to such Tax (and any
        directly related claim and any claim the outcome of which is determined based
        upon the outcome of such claim), (ii) shall pay to Lessee

       

       

      
        
          
          

        

        
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      any
        amount previously paid or advanced by Lessee pursuant to this Section 9.3
        (other
        than contest costs) with respect to such Tax, plus interest at the rate that
        would have been payable by the relevant Taxing Authority with respect to
        a
        refund of such Tax, and (iii) shall agree to discuss with Lessee the views
        or
        positions of any relevant Taxing Authority with respect to the imposition
        of
        such Tax.

       

      9.3.5  
        Refund

       

      If
        any
        Tax Indemnitee shall receive a refund of, or be entitled to a credit against
        other liability for, all or any part of any Taxes paid, reimbursed or advanced
        by Lessee, such Tax Indemnitee shall pay to Lessee within 30 days of such
        receipt an amount equal to the lesser of (a) the amount of such refund or
        credit
        plus any net tax benefit (taking into account any Taxes incurred by such
        Tax
        Indemnitee by reason of the receipt of such refund or realization of such
        credit) actually realized by such Tax Indemnitee as a result of any payment
        by
        such Tax Indemnitee made pursuant to this sentence (including this clause
        (a))
        and (b) such tax payment, reimbursement or advance by Lessee to such Tax
        Indemnitee theretofore made pursuant to this Section 9.3 (and the excess,
        if
        any, of the amount described in clause (a) over the amount described in clause
        (b) shall be carried forward and applied to reduce pro tanto any subsequent
        obligation of Lessee to make payments to such Tax Indemnitee pursuant to
        this
        Section 9.3). If, in addition to such refund or credit, such Tax Indemnitee
        shall receive (or be credited with) an amount representing interest on the
        amount of such refund or credit, such Tax Indemnitee shall pay to Lessee
        within
        30 days of such receipt or realization of such credit that proportion of
        such
        interest that shall be fairly attributable to Taxes paid, reimbursed or advanced
        by Lessee prior to the receipt of such refund or realization of such credit.
        If
        any such refund or credit or any interest thereon for which a Tax Indemnitee
        shall have paid Lessee is later recaptured, denied, disallowed or reduced,
        such
        recapture, denial, disallowance or reduction shall be treated as a Tax
        indemnifiable under Section 9.3.1 without regard to the provisions of Section
        9.3.2 (other than Section 9.3.2(f)).

       

      9.3.6  
        Tax
        Filing

       

      If
        any
        report, return or statement is required to be filed with respect to any Tax
        which is subject to indemnification under this Section 9.3, Lessee shall
        timely
        file the same (except for any such report, return or statement which a Tax
        Indemnitee has timely notified the Lessee in writing that such Tax Indemnitee
        intends to file or which a Tax Indemnitee is required by law to file in its
        own
        name); provided, that the relevant Tax Indemnitee shall furnish Lessee with
        any
        information in such Tax Indemnitee’s possession or control that is reasonably
        necessary to file any such return, report or statement and is reasonably
        requested in writing by Lessee (it being understood that the Tax Indemnitee
        shall not be required to furnish copies of its actual tax returns, although
        it
        may be required to furnish relevant information contained therein). Lessee
        shall
        either file such report, return or statement and send a copy of such report,
        return or statement to such Tax Indemnitee, and Owner Trustee if the Tax
        Indemnitee is not Owner Trustee, or, where Lessee is not permitted to file
        such
        report, return or statement, or if the same is required by law to be filed
        in
        the Tax Indemnitee’s own name, it shall notify such Tax Indemnitee in writing of
        such requirement and prepare and deliver such report, return or statement
        to
        such Tax Indemnitee in a manner satisfactory to such Tax Indemnitee within
        a
        reasonable time prior to the time such report, return or statement is to
        be
        filed.

       

       

      
        
          
          

        

        
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      9.3.7  
        Forms

       

      Each
        Tax
        Indemnitee agrees to furnish from time to time to Lessee or Mortgagee or
        to such
        other person as Lessee or Mortgagee may designate, at Lessee’s or Mortgagee’s
        request, such duly executed and properly completed forms as may be necessary
        or
        appropriate in order to claim any reduction of or exemption from any withholding
        or other Tax imposed by any Taxing Authority, if (x) such reduction or exemption
        is available to such Tax Indemnitee, (y) Lessee has provided such Tax Indemnitee
        with any information necessary to complete such form not otherwise reasonably
        available to such Tax Indemnitee, and (z) if such return is required to be
        filed
        in a jurisdiction outside the United States, the Tax Indemnitee has not made
        a
        good faith determination that such filing would subject it or any Affiliate
        to
        any adverse consequences in such jurisdiction for which it has not been (and
        would not have been) indemnified.

       

      9.3.8  
        Non-Parties

       

      If
        a Tax
        Indemnitee is not a party to this Agreement, Lessee may require the Tax
        Indemnitee to agree in writing, in a form reasonably acceptable to Lessee,
        to
        the terms of this Section 9.3 and Section 15.8 prior to making any payment
        to such Tax Indemnitee under this Section 9.3.

       

      9.3.9  
        Subrogation

       

      Upon
        payment of any Tax by Lessee pursuant to this Section 9.3 to or on behalf
        of a
        Tax Indemnitee, Lessee, without any further action, shall be subrogated to
        any
        claims that such Tax Indemnitee may have relating thereto. Such Tax Indemnitee
        shall cooperate with Lessee (to the extent such cooperation does not result
        in
        any unreimbursed cost, expense or liability to such Tax Indemnitee) to permit
        Lessee to pursue such claims.

       

      9.3.10 
        Foreign
        Tax On Loan Payments

       

      If
        an
        Owner Participant is incorporated or organized, or maintains a place of business
        or conducts activities (other than any activities of the Owner Participant
        resulting from its participation in the transactions contemplated by the
        Operative Agreements or resulting from any activities of Lessee in such
        jurisdiction) in a country other than the United States or in a territory,
        possession or commonwealth of the United States (within the meaning of the
        tax
        law of that foreign jurisdiction) and if as a result thereof any foreign
        Taxes
        (including withholding Taxes) are imposed on Pass Through Trustee, Pass Through
        Trust, or any Note Holder, then Owner Participant shall reimburse Lessee
        for any
        payments Lessee is required to make to or on behalf of Pass Through Trustee,
        Pass Through Trust, or any Note Holder under this Section 9.3 as a result
        of the
        imposition of such Taxes. The amount payable by Owner Participant to Lessee
        shall be an amount which, after taking into account any such Taxes, any Tax
        imposed upon the receipt or accrual by Lessee of such payment by Owner
        Participant and any tax benefits or tax savings realized by Lessee with respect
        to the payment of such withholding Tax or the payment hereunder, shall equal
        the
        amount of Lessee’s payment to or on behalf of such Pass Through Trustee, Pass
        Through Trust or Note Holder.

       

       

      
        
          
          

        

        
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      9.4  
Payments

       

      Any
        payments made pursuant to Section 9.1 and Section 9.3 shall be due on the
        60th day after demand is made to the indemnifying party therefor (other than
        any
        payments for which a different time is provided under Section 9.3.3 hereof)
        and
        shall be made directly to the relevant Indemnitee or Tax Indemnitee or to
        Lessee, in immediately available funds at such bank or to such account as
        specified by such Indemnitee or Tax Indemnitee or Lessee, as the case may
        be, in
        written directives to the payor, or, if no such direction shall have been
        given,
        by check of the payor payable to the order of, and mailed to, such Indemnitee
        or
        Tax Indemnitee or Lessee, as the case may be, by certified mail, postage
        prepaid, at its address as set forth in this Agreement.

       

      9.5  
Interest

       

      If
        any
        amount, payable by Lessee, any Indemnitee or any Tax Indemnitee under
        Section 9.1 or 9.3 is not paid when due, the person obligated to make such
        payment shall pay on demand, to the extent permitted by Law, to the person
        entitled thereto, interest on any such amount for the period from and including
        the due date for such amount to but excluding the date the same is paid,
        at the
        Payment Due Rate. Such interest shall be paid in the same manner as the unpaid
        amount in respect of which such interest is due.

       

      9.6  
Benefit
        of Indemnities

       

      The
        obligations of Lessee in respect of all indemnities, obligations, adjustments
        and payments in Section 9.1 or 9.3 are expressly made for the benefit of,
        and shall be enforceable by, the Indemnitee or Tax Indemnitee entitled thereto,
        without declaring the Lease to be in default or taking other action thereunder,
        and notwithstanding any provision of the Trust Indenture.

       

      SECTION
        10.  ASSIGNMENT
        OR TRANSFER OF INTERESTS

       

      10.1  
Participants,
        Owner Trustee and Note Holders

       

      10.1.1  
        Owner
        Participant

       

      (a) Owner
        Participant shall not Transfer any or all of its right, title or interest
        in the
        Trust Estate or the Trust Agreement and to this Agreement unless:

       

      (i) The
        Transferee shall have full power, authority and legal right to execute and
        deliver and to perform the obligations of Owner Participant under this Agreement
        and the other Owner Participant Agreements and shall provide reasonably
        satisfactory evidence of such power and authority to Lessee, Owner Trustee
        and
        Mortgagee;

       

      (ii) The
        Transferee shall enter into one or more legal, valid, binding and enforceable
        agreements effective to confirm that such Transferee agrees to be bound by
        all
        the terms of, and to undertake all of the obligations arising after such
        transfer of, the transferring Owner Participant contained in the Owner
        Participant Agreements and in which it makes representations and warranties
        substantially the same as those contained in Section 6.2 of this
        Participation Agreement;

       

       

      
        
          
          

        

        
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      (iii) Lessee
        shall not be obligated to pay any greater amount or incur any greater obligation
        than that which it would have been obliged to pay or incur under the Lease
        or
        other Lessee Operative Agreement if no transfer or assignment had taken place,
        and the terms and conditions of the Lease and the other Lessee Operative
        Agreements insofar as they relate to the rights and obligations of Lessee
        or the
        Loan Participants shall not be altered;

       

      (iv) Owner
        Participant shall deliver to Lessee, Owner Trustee and Mortgagee an opinion
        of
        counsel reasonably satisfactory to each of them (which, if the Transferee
        is an
        Affiliate of the Owner Participant, may be in-house counsel to such Owner
        Participant) to the effect that such agreement or agreements referred to
        in
        Section 10.1.1(a)(ii) and, if applicable, 10.1.1(a)(vi) are legal, binding
        and enforceable in accordance with its or their terms and that such transfer
        will not violate applicable securities laws, the Act or any other applicable
        Law
        and is in accordance with this Section 10.1.1;

       

      (v) The
        Transferee is a Citizen of the United States (it being understood that the
        existence of any such requirement is to be determined without giving
        consideration to Section 47.9 of the FAA Regulations or any other provision
        that would restrict Lessee’s use or operation of the Aircraft), or shall use a
        voting powers trust or similar arrangement in order to hold an interest in
        the
        Trust Estate such that the Aircraft can be registered in the United States
        (without giving consideration to Section 47.9 of the FAA Regulations or any
        other provision that would restrict Lessee’s use or operation of the
        Aircraft);

       

      (vi) The
        Transferee shall be one person and shall be either (A) a Permitted
        Institution or (B) any other person (other than, without Lessee’s consent, a
        commercial air carrier, a commercial aircraft operator, a freight forwarder
        or
        an Affiliate of any of the foregoing) the obligations of which under the
        Owner
        Participant Agreements are guaranteed by a Permitted Institution in any case,
        pursuant to a written guaranty, in form and substance reasonably satisfactory
        to
        Lessee, Owner Trustee and Mortgagee; and

       

      (vii) The
        Transferee shall be a “U.S. Person” as defined in Section 7701(a)(30) of the
        Code (or any successor provision thereto).

       

      (b) Owner
        Participant shall give written notice to Lessee, Mortgagee and Owner Trustee
        at
        least 10 days prior to any such Transfer, specifying the name and address
        of the
        proposed Transferee, and providing financial statements of the proposed
        Transferee evidencing satisfaction of the requirements described in
        Section 10.1.1(a)(vi)(A) or (B) above.

       

      (c) Any
        fees,
        charges and expenses, including the reasonable legal fees, charges and expenses
        incurred by Lessee, Owner Participant, Mortgagee, any Note Holder or Owner
        Trustee in connection with any Transfer by Owner Participant permitted by
        this
        Section 10.1.1, or by the Transferee in any such case, will be paid for by
        Owner
        Participant.

       

      10.1.2  
        Owner
        Trustee

       

      Owner
        Trustee may transfer its interests in the Trust Agreement pursuant to
        Section 9 thereof.

       

       

      
        
          
          

        

        
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      10.1.3  
        Note
        Holders

       

      Subject
        to Section 7.5.2 hereof and Section 2.07 of the Trust Indenture, any Note
        Holder may, at any time and from time to time, Transfer or grant participations
        in all or any portion of the Equipment Notes and/or all or any portion of
        its
        beneficial interest in its Equipment Notes and the Trust Indenture Estate
        to any
        person (it being understood that the sale or issuance of Pass Through
        Certificates by the Pass Through Trustee shall not be considered a Transfer
        or
        participation); provided, that any participant in any such participations
        shall
        not have any direct rights under the Operative Agreements or any Lien on
        all or
        any part of the Aircraft or Trust Indenture Estate and neither Lessee, Lessor,
        nor Owner Participant shall have any increased liability or obligations as
        a
        result of any such participation. In the case of any such Transfer, the
        Transferee, by acceptance of Equipment Notes in connection with such Transfer,
        shall be deemed to be bound by all of the covenants of Note Holders contained
        in
        the Operative Agreements.

       

      10.2  
Effect
        of Transfer

       

      Upon
        any
        Transfer in accordance with Section 10.1.1, 10.1.2 or 10.1.3 (other than
        any Transfer by any Note Holder, to the extent it only grants participations
        in
        Equipment Notes or in its beneficial interest therein), Transferee shall
        be
        deemed an “Owner Participant,” “Owner Trustee” or a “Note Holder,” respectively,
        for all purposes of this Agreement and the other Operative Agreements and,
        in
        the case of a Transferee of any Participant or Note Holder, shall be deemed
        to
        have paid its ratable portion of Lessor’s Cost previously made by Owner
        Participant or Loan Participant, respectively, making such conveyance and
        represented by the interest being conveyed, and each reference herein to
        Owner
        Participant, Owner Trustee or Note Holder, respectively, shall thereafter
        be
        deemed a reference to such Transferee for all purposes, and the transferring
        Owner Participant, Owner Trustee, Loan Participant or Note Holder shall be
        released (except, in the case of Owner Participant, to the extent of any
        guaranty provided by it under Section 10.1.1(a)(vi)) from all of its
        liabilities and obligations under this Agreement and any other Operative
        Agreements to the extent such liabilities and obligations arise after such
        Transfer and, in each case, to the extent such liabilities and obligations
        are
        assumed by the Transferee; provided,
        that
        such transferring Owner Participant, Owner Trustee or Note Holder (and its
        respective Affiliates, successors, assigns, agents, servants, representatives,
        directors and officers) will continue to have the benefit of any rights or
        indemnities under any Operative Agreement vested or relating to circumstances,
        conditions, acts or events prior to such Transfer.

       

      SECTION
        11.  [RESERVED]

       

      SECTION
        12.  SECTION
        1110

       

      It
        is the
        intention of each of Lessee, Owner Participant, Loan Participant, the Note
        Holders (such intention being evidenced by each of their acceptance of an
        Equipment Note), Owner Trustee and Mortgagee that Owner Trustee, as lessor
        under
        the Lease (and Mortgagee as assignee of Owner Trustee under the Trust
        Indenture), shall be entitled to the benefits of Section 1110 in the event
        of a case under Chapter 11 of the Bankruptcy Code in which Lessee is a debtor.
        Lessee shall at all times be certificated and registered to the extent necessary
        to entitle

       

       

      
        
          
          

        

        
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      Owner
        Trustee to the rights afforded to lessors of aircraft equipment under
        Section 1110 of the Bankruptcy Code.

       

      SECTION
        13.  CHANGE
        OF CITIZENSHIP

       

      13.1  
Generally

       

      Without
        prejudice to the representations, warranties or covenants regarding the status
        of any party hereto as a Citizen of the United States:

       

      (a) Each
        of
        Lessee, Wells Fargo and WTC agrees that it will, immediately upon obtaining
        knowledge of any facts that would cast doubt upon its continuing status as
        a
        Citizen of the United States and promptly upon public disclosure of negotiations
        in respect of any transaction which would or might adversely affect such
        status,
        notify in writing all parties hereto of all relevant matters in connection
        therewith; and

       

      (b) Owner
        Participant agrees that, in the event its status is to change or has changed
        as
        a Citizen of the United States, or it makes public disclosure of circumstances
        as a result of which it believes that such status is likely to change, it
        will
        notify all the other parties to this Participation Agreement of (i) such
        change in status promptly after obtaining Actual Knowledge thereof or
        (ii) such belief as soon as practicable after such public disclosure but in
        any event within ten Business Days after such public disclosure.

       

      13.2  
Owner
        Participant

       

      Owner
        Participant agrees, solely for the benefit of Lessee and the Note Holders
        that
        if, during such time as the Aircraft is registered in the United States,
        (a) it shall not be a Citizen of the United States and (b) the
        Aircraft shall be, or would therefore become, ineligible for registration
        in the
        name of Owner Trustee under the Act and regulations then applicable thereunder
        (without giving consideration to Section 47.9 of the FAA Regulations or any
        other provision that may restrict Lessee’s use or operation of the Aircraft),
        then Owner Participant shall as soon as is reasonably practicable, but in
        any
        event within 30 days after obtaining Actual Knowledge of such ineligibility
        and
        of such loss of citizenship, (y) effect voting trust or other similar
        arrangements (in which case any provisions contained in the Operative Agreements
        restricting Owner Participant’s or Owner Trustee’s ability to amend the Trust
        Agreement shall not apply to the extent necessary to permit the use of such
        a
        voting trust or other similar arrangement) or take any other action as may
        be
        necessary to prevent any deregistration or maintain the United States
        registration of the Aircraft or (z) transfer in accordance with the terms
        of this Agreement all its right, title and interest in and to this Agreement,
        the Trust Estate and the Trust Agreement in accordance with
        Section 10.1.

       

      13.3  
Owner
        Trustee

       

      Upon
        Wells Fargo giving any notice in accordance with Section 13.1(a), Owner
        Trustee shall, subject to Section 9.1.1 of the Trust Agreement, resign as
        Owner
        Trustee. Upon its receipt of such notice, Owner Participant shall as promptly
        as
        practicable appoint a Citizen of the United States as successor Owner Trustee
        pursuant to Section 9.1 of the Trust Agreement.

       

       

      
        
          
          

        

        
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      13.4  
Mortgagee

       

      Upon
        WTC
        giving any notice in accordance with Section 13.1(a), Mortgagee shall (if
        and so long as such citizenship is necessary under the Act as in effect at
        such
        time or, if it is not necessary, if and so long as Mortgagee’s citizenship could
        have any adverse effect on Lessee, any Participant or any Note Holder), subject
        to Section 8.02 of the Trust Indenture, resign as Mortgagee promptly upon
        its ceasing to be such a citizen.

       

      SECTION
        14.  CONCERNING
        OWNER TRUSTEE

       

      It
        is
        understood and agreed that, except as otherwise expressly provided herein
        or in
        the Trust Agreement or the Trust Indenture, Owner Trustee is entering into
        this
        Agreement solely in its capacity as trustee as provided in the Trust Agreement
        and not in its individual capacity and in no case whatsoever will it be liable
        or accountable in its individual capacity for any of the statements,
        representations, warranties, agreements or obligations of Owner Trustee
        hereunder, or for any loss in respect thereof, as to all of which the parties
        agree to look solely to the Trust Estate; provided,
        that
        nothing in this Section 14 shall be deemed to limit in scope or substance
        the
        personal liability of Wells Fargo (a) to Owner Participant as expressly set
        forth in the Trust Agreement, (b) in respect of the representations, warranties
        and agreements of Wells Fargo expressly made as such herein or in any other
        Operative Agreement to which it is a party, and (c) for the consequences of
        its own gross negligence, willful misconduct, and, in receiving, handling
        or
        remitting of funds only, its willful misconduct or simple negligence as a
        trustee.

       

      SECTION
        15.  MISCELLANEOUS

       

      15.1  
Amendments

       

      No
        provision of this Agreement may be amended, supplemented, waived, modified,
        discharged, terminated or otherwise varied orally, but only by an instrument
        in
        writing that specifically identifies the provision of this Agreement that
        it
        purports to amend, supplement, waive, modify, discharge, terminate or otherwise
        vary and is signed by the party against which the enforcement of the amendment,
        supplement, waiver, modification, discharge, termination or variance is sought.
        Each such amendment, supplement, waiver, modification, discharge, termination
        or
        variance shall be effective only in the specific instance and for the specific
        purpose for which it is given. No provision of this Agreement shall be varied
        or
        contradicted by oral communication, course of dealing or performance or other
        manner not set forth in an agreement, document or instrument in writing and
        signed by the party against which enforcement of the same is
        sought.

       

      15.2  
Severability

       

      If
        any
        provision hereof shall be held invalid, illegal or unenforceable in any respect
        in any jurisdiction, then, to the extent permitted by Law, (a) all other
        provisions hereof shall remain in full force and effect in such jurisdiction
        and
        (b) such invalidity, illegality or unenforceability shall not affect the
        validity, legality or enforceability of such provision in any other
        jurisdiction. If, however, any Law pursuant to which such provisions are
        held
        invalid, illegal or unenforceable may be waived, such Law is hereby waived
        by
        the parties hereto to the full extent permitted, to

       

       

      
        
          
          

        

        
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      the
        end
        that this Agreement shall be deemed to be a valid and binding agreement in
        all
        respects, enforceable in accordance with its terms.

       

      15.3  
Survival

       

      The
        indemnities set forth herein shall survive the delivery or return of the
        Aircraft, the Transfer of any interest of Owner Participant in this Agreement,
        the Trust Estate and the Trust Agreement, the Transfer of any interest by
        any
        Note Holder of its Equipment Note and the expiration or other termination
        of
        this Agreement or any other Operative Agreement.

       

      15.4  
Reproduction
        of Documents

       

      This
        Agreement, all annexes, schedules and exhibits hereto and all agreements,
        instruments and documents relating hereto, including, without limitation,
        (a)
        consents, waivers and modifications that may hereafter be executed and
        (b) financial statements, certificates and other information previously or
        hereafter furnished to any party hereto, may be reproduced by such party
        by any
        photographic, photostatic, microfilm, micro-card, miniature photographic
        or
        other similar process, and such party may destroy any original documents
        so
        reproduced. Any such reproduction shall be as admissible in evidence as the
        original itself in any judicial or administrative proceeding (whether or
        not the
        original is in existence and whether or not such reproduction was made by
        such
        party in the regular course of business) and any enlargement, facsimile or
        further reproduction of such reproduction likewise is admissible in
        evidence.

       

      15.5  
Counterparts

       

      This
        Agreement and any amendments, waivers, consents or supplements hereto may
        be
        executed in any number of counterparts (or upon separate signature pages
        bound
        together into one or more counterparts), each of which when so executed shall
        be
        deemed to be an original, and all of which counterparts, taken together,
        shall
        constitute one and the same instrument.

       

      15.6  
No
        Waiver

       

      No
        failure on the part of any party hereto to exercise, and no delay by any
        party
        hereto in exercising, any of its respective rights, powers, remedies or
        privileges under this Agreement or provided at Law, in equity or otherwise
        shall
        impair, prejudice or constitute a waiver of any such right, power, remedy
        or
        privilege or be construed as a waiver of any breach hereof or default hereunder
        or as an acquiescence therein nor shall any single or partial exercise of
        any
        such right, power, remedy or privilege preclude any other or further exercise
        thereof by it or the exercise of any other right, power, remedy or privilege
        by
        it. No notice to or demand on any party hereto in any case shall, unless
        otherwise required under this Agreement, entitle such party to any other
        or
        further notice or demand in similar or other circumstances or constitute
        a
        waiver of the rights of any party hereto to any other or further action in
        any
        circumstances without notice or demand.

       

      15.7  
Notices

       

      Unless
        otherwise expressly permitted by the terms hereof, all notices, requests,
        demands, authorizations, directions, consents, waivers and other communications
        required or permitted to be made, given, furnished or filed hereunder shall
        be
        in writing (it being understood that the

       

       

      
        
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       specification
        of a writing in certain instances and not in others does not imply an intention
        that a writing is not required as to the latter), shall refer specifically
        to
        this Agreement or other applicable Operative Agreement, and shall be personally
        delivered, sent by facsimile or telecommunication transmission (which in
        either
        case provides written confirmation to the sender of its delivery), sent by
        registered mail or certified mail, return receipt requested, postage prepaid,
        or
        sent by overnight courier service, in each case to the respective address,
        or
        facsimile number set forth for such party in Schedule 1, or to such other
        address, facsimile or other number as each party hereto may hereafter specify
        by
        notice to the other parties hereto. Each such notice, request, demand,
        authorization, direction, consent, waiver or other communication shall be
        effective when received or, if made, given, furnished or filed (a) by facsimile
        or telecommunication transmission, when confirmed, or (b) by registered or
        certified mail, three Business Days after being deposited, properly addressed,
        with the U.S. Postal Service.

       

      15.8  
GOVERNING
        LAW; SUBMISSION TO JURISDICTION; VENUE

       

      (a) THIS
        AGREEMENT SHALL IN ALL RESPECTS BE GOVERNED BY THE LAWS OF THE STATE OF NEW
        YORK, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE. THIS
        AGREEMENT IS BEING DELIVERED IN THE STATE OF NEW YORK.

       

      (b) EACH
        PARTY HERETO HEREBY IRREVOCABLY AGREES, ACCEPTS AND SUBMITS ITSELF TO THE
        NON-EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK IN THE
        CITY
        AND COUNTY OF NEW YORK AND OF THE UNITED STATES FOR THE SOUTHERN DISTRICT
        OF NEW
        YORK, IN CONNECTION WITH ANY LEGAL ACTION, SUIT OR PROCEEDING WITH RESPECT
        TO
        ANY MATTER RELATING TO OR ARISING OUT OF OR IN CONNECTION WITH THIS
        AGREEMENT.

       

      (c) EACH
        PARTY HERETO HEREBY IRREVOCABLY CONSENTS AND AGREES TO THE SERVICE OF ANY
        AND
        ALL LEGAL PROCESS, SUMMONS, NOTICES AND DOCUMENTS OF ANY OF THE AFOREMENTIONED
        COURTS IN ANY SUCH SUIT, ACTION OR PROCEEDING MAY BE MADE BY MAILING COPIES
        THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, AT THE ADDRESS
        SET
        FORTH PURSUANT TO SECTION 15.7. EACH PARTY HERETO HEREBY AGREES THAT
        SERVICE UPON IT, OR ANY OF ITS AGENTS, IN EACH CASE IN ACCORDANCE WITH THIS
        SECTION 15.8(c), SHALL CONSTITUTE VALID AND EFFECTIVE PERSONAL SERVICE UPON
        SUCH
        PARTY, AND EACH PARTY HERETO HEREBY AGREES THAT THE FAILURE OF ANY OF ITS
        AGENTS
        TO GIVE ANY NOTICE OF SUCH SERVICE TO ANY SUCH PARTY SHALL NOT IMPAIR OR
        AFFECT
        IN ANY WAY THE VALIDITY OF SUCH SERVICE ON SUCH PARTY OR ANY JUDGMENT RENDERED
        IN ANY ACTION OR PROCEEDING BASED THEREON.

       

      (d) TO
        THE EXTENT THAT ANY PARTY HERETO HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY
        FROM
        JURISDICTION OF ANY OF THE ABOVE-NAMED COURTS OR FROM ANY LEGAL PROCESS THEREIN,
        SUCH PARTY HEREBY IRREVOCABLY WAIVES, TO THE EXTENT PERMITTED
        BY

       

       

      
        
          
          

        

        
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            64

          
            

          

        

        
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      APPLICABLE
        LAW, SUCH IMMUNITY, AND EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE
        EXTENT PERMITTED BY APPLICABLE LAW, AND AGREES NOT TO ASSERT, BY WAY OF MOTION,
        AS A DEFENSE, OR OTHERWISE, IN ANY LEGAL ACTION OR PROCEEDING BROUGHT HEREUNDER
        IN ANY OF THE ABOVE-NAMED COURTS, (i) THE DEFENSE OF SOVEREIGN IMMUNITY,
        (ii) THAT IT OR ANY OF ITS PROPERTY IS IMMUNE FROM THE ABOVE DESCRIBED
        LEGAL PROCESS AND (iii) THAT SUCH ACTION OR PROCEEDING IS BROUGHT IN AN
        INCONVENIENT FORUM, THAT VENUE FOR THE ACTION OR PROCEEDING IS IMPROPER OR
        THAT
        THIS AGREEMENT OR ANY OTHER OPERATIVE AGREEMENT MAY NOT BE ENFORCED IN OR
        BY
        SUCH COURTS.

       

      (e) EACH
        PARTY HERETO HEREBY WAIVES ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM
        OR
        CAUSE OF ACTION IN ANY COURT IN ANY JURISDICTION BASED UPON OR ARISING OUT
        OF OR
        RELATING TO THIS AGREEMENT.

       

      15.9  
Third-Party
        Beneficiary

       

      This
        Agreement is not intended to, and shall not, provide any person not a party
        hereto (other than each Indemnitee, which is an intended third party beneficiary
        with respect to the provisions of Section 9.1 as provided in Section 9.1.3,
        and the other persons referred to in Section 7.6.13, who are intended third
        party beneficiaries of such Section) with any rights of any nature whatsoever
        against any of the parties hereto and no person not a party hereto (other
        than
        each Indemnitee, with respect to the provisions of Section 9.1 as provided
        in Section 9.1.3, and the other persons referred to in Section 7.6.13, with
        respect to such Section) shall have any right, power or privilege in respect
        of
        any party hereto, or have any benefit or interest, arising out of this
        Agreement.

       

      15.10 
Entire
        Agreement

       

      This
        Agreement, together with the other Operative Agreements, on and as of the
        date
        hereof, constitutes the entire agreement of the parties hereto with respect
        to
        the subject matter hereof, and all prior or contemporaneous understandings
        or
        agreements, whether written or oral, among any of the parties hereto with
        respect to such subject matter are hereby superseded in their entireties
        (except
        that the Indemnity Agreement shall not be superseded).

       

      15.11 
Further
        Assurances

       

      Each
        party hereto shall execute, acknowledge and deliver or shall cause to be
        executed, acknowledged and delivered, all such further agreements, instruments,
        certificates or documents, and shall do and cause to be done such further
        acts
        and things, in any case, as any other party hereto shall reasonably request
        in
        connection with the administration of, or to carry out more effectively the
        purposes of, or to better assure and confirm into such other party the rights
        and benefits to be provided under this Agreement and the other Operative
        Agreements. 

       

      [This
        space intentionally left blank]

       

    

     

    
      
        
        

      

      
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      IN
        WITNESS WHEREOF, each of the parties has caused this Participation Agreement
        to
        be duly executed and delivered as of the day and year first above
        written.

       

      CONTINENTAL
        AIRLINES, INC., 
Lessee

       

       

      By
        __________________________________

      Name:

      Title:

       

      [OP],

      Owner
        Participant

       

       

      
        By
          __________________________________

        Name:

        Title:

      

       

      WELLS
        FARGO BANK NORTHWEST,

      NATIONAL
        ASSOCIATION,

      not
        in
        its individual capacity, except as expressly

      provided
        herein, but solely as Owner Trustee

       

       

      
      

      
        By
          __________________________________

        Name:

        Title:

      

       

       

       

       

      
        
          
          

        

        
          SIGNATURE
            PAGE

          
            

          

        

        
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            of Contents

        

      

      
 

      WILMINGTON
        TRUST COMPANY, 

      not
        in
        its individual capacity, except as expressly

      provided
        herein, but solely as Mortgagee

       

       

      
        By
          __________________________________

        Name:

        Title:

         

        
        

        WILMINGTON
          TRUST COMPANY, 
not
          in
          its individual capacity, except as expressly
provided
          herein, but solely as Pass Through
Trustee
          under the Pass Through Trust Agreement
for
          the
          Continental Airlines Pass Through Trust,
2005-ERJ1

      

       

       

      
        By
          __________________________________

        Name:

        Title:

      

       

      WILMINGTON
        TRUST COMPANY,

      not
        in
        its individual capacity, except as expressly

      provided
        herein, but solely as Subordination

      Agent

       

       

      
        By
          __________________________________

        Name:

        Title:

      

       

      EMBRAER-EMPRESA
        BRASILEIRA DE

      AERONÁ;UTICA
        S.A.,

      Airframe
        Manufacturer

       

       

      
        By
          __________________________________

        Name:

        Title:

         

         

        
          
            
            

          

          
            SIGNATURE
              PAGE

            
              

            

          

          
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              of Contents

          

        

        
          
             

            FINAL

            
               

              
                	
                        ANNEX
                          A-DEFINITIONS  [TN]

                      

              

               

              ANNEX
                A

            

             

            DEFINITIONS

             

            GENERAL
              PROVISIONS

             

            
              
              

              (a) In
                each
                Operative Agreement, unless otherwise expressly provided, a reference
                to:

               

              (i) each
                of
“Lessee,” “Lessor,” “Loan Participant,” “Owner Trustee,” “Owner Participant,”
“Mortgagee,” “Note Holder” or any other person includes, without prejudice to
                the provisions of any Operative Agreement, any successor in interest
                to it and
                any permitted transferee, permitted purchaser or permitted assignee
                of
                it;

               

              (ii) words
                importing the plural include the singular and words importing the
                singular
                include the plural;

               

              (iii) any
                agreement, instrument or document, or any annex, schedule or exhibit
                thereto, or
                any other part thereof, includes, without prejudice to the provisions
                of any
                Operative Agreement, that agreement, instrument or document, or annex,
                schedule
                or exhibit, or part, respectively, as amended, modified or supplemented
                from
                time to time in accordance with its terms and in accordance with
                the Operative
                Agreements, and any agreement, instrument or document entered into
                in
                substitution or replacement therefor;

               

              (iv) any
                provision of any Law includes any such provision as amended, modified,
                supplemented, substituted, reissued or reenacted prior to the Closing
                Date, and
                thereafter from time to time;

               

              (v) the
                words
“Agreement,” “this Agreement,” “hereby,” “herein,” “hereto,” “hereof” and
“hereunder” and words of similar import when used in any Operative Agreement
                refer to such Operative Agreement as a whole and not to any particular
                provision
                of such Operative Agreement;

               

              (vi) the
                words
“including,” “including, without limitation,” “including, but not limited to,”
and terms or phrases of similar import when used in any Operative
                Agreement,
                with respect to any matter or thing, mean including, without limitation,
                such
                matter or thing; and

               

              (vii) a
                “Section,” an “Exhibit,” an “Annex” or a “Schedule” in any Operative Agreement,
                or in any annex thereto, is a reference to a section of, or an exhibit,
                an annex
                or a schedule to, such Operative Agreement or such annex,
                respectively.

               

              (b) Each
                exhibit, annex and schedule to each Operative Agreement is incorporated
                in, and
                shall be deemed to be a part of, such Operative Agreement.

            

             

            
              
                
                

              

              
                
                

                
                  

                

              

              
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              (c) Unless
                otherwise defined or specified in any Operative Agreement, all accounting
                terms
                therein shall be construed and all accounting determinations thereunder
                shall be
                made in accordance with GAAP.

               

              (d) Headings
                used in any Operative Agreement are for convenience only and shall
                not in any
                way affect the construction of, or be taken into consideration in
                interpreting,
                such Operative Agreement.

               

              (e) For
                purposes of each Operative Agreement, the occurrence and continuance
                of a Lease
                Default or Lease Event of Default referred to in Section 14.5 of
                the Lease shall
                not be deemed to prohibit the Lessee from taking any action or exercising
                any
                right that is conditioned on no Lease Event of Default, Bankruptcy
                Default or
                Lease Default having occurred and be continuing if a Section 1110
                Event shall
                have occurred and is then continuing.

               

              DEFINED
                TERMS

               

              “Act”
means
                part A of subtitle VII of title 49, United States Code.

               

              “Actual
                Knowledge”
means
                (a) as it applies to Owner Trustee or Mortgagee, as the case may
                be, actual
                knowledge of a responsible officer in the Corporate Trust Department
                (in the
                case of Owner Trustee) or the Corporate Trust Office (in the case
                of Mortgagee)
                and (b) as it applies to Owner Participant, Airframe Manufacturer
                or Lessee,
                actual knowledge of a Vice President or more senior officer of Owner
                Participant, Airframe Manufacturer or Lessee, respectively, or any
                other officer
                of Owner Participant, Airframe Manufacturer or Lessee, respectively,
                having
                responsibility for the transactions contemplated by the Operative
                Agreements;
provided
                that
                each of Lessee, Owner Participant, Owner Trustee, Mortgagee and Airframe
                Manufacturer shall be deemed to have “Actual Knowledge” of any matter as to
                which it has received notice from Lessee, Owner Participant, any
                Note Holder,
                Owner Trustee or Mortgagee, such notice having been given pursuant
                to Section
                15.7 of the Participation Agreement.

               

              “Additional
                Insured”
is
                defined in Section D of Annex D to the Lease.

               

              “Affiliate”
means,
                with respect to any person, any other person directly or indirectly
                controlling,
                controlled by or under common control with such person. For purposes
                of this
                definition, “control” means the power, directly or indirectly, to direct or
                cause the direction of the management and policies of such person,
                whether
                through the ownership of voting securities or by contract or otherwise
                and
“controlling,” “controlled by” and “under common control with” have correlative
                meanings.

               

              “Aircraft”
means,
                collectively, the Airframe and Engines.

               

              “Aircraft
                Bill of Sale”
means
                the full warranty bill of sale covering the Aircraft delivered by
                Seller to
                Owner Trustee on the Delivery Date.

               

              “Aircraft
                Documents”
means
                all technical data, manuals and log books, and all inspection, modification
                and
                overhaul records and other service, repair, maintenance and technical
                records
                that are required by the FAA (or the relevant Aviation Authority)
                to be
                maintained with respect to the Aircraft, Airframe, Engines or Parts;
                and such
                term shall include 

            

             

          

          
            
              
                
                

              

              
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            all
              additions, renewals, revisions and replacements of any such materials
              from time
              to time made, or required to be made, by the FAA (or other Aviation
              Authority)
              regulations, and in each case in whatever form and by whatever means
              or medium
              (including, without limitation, microfiche, microfilm, paper or computer
              disk)
              such materials may be maintained or retained by or on behalf of Lessee
              (provided, that
              all
              such materials shall be maintained in the English language).

             

            “Airframe”
means
              (a) the aircraft (excluding Engines or engines from time to time installed
              thereon) manufactured by Airframe Manufacturer and identified by Airframe
              Manufacturer’s model number, United States registration number and Airframe
              Manufacturer’s serial number set forth in Lease Supplement No. 1 and any
              Replacement Airframe and (b) any and all Parts incorporated or installed in
              or attached or appurtenant to such airframe, and any and all Parts
              removed from
              such airframe, unless title to such Parts shall not be vested in Lessor
              in
              accordance with Section 8.1 and Annex C of the Lease. Upon substitution of
              a Replacement Airframe under and in accordance with the Lease, such
              Replacement
              Airframe shall become subject to the Lease and shall be the “Airframe” for all
              purposes of the Lease and the other Operative Agreements and thereupon
              the
              Airframe for which the substitution is made shall no longer be subject
              to the
              Lease, and such replaced Airframe shall cease to be the “Airframe.”

             

            “Airframe
              Manufacturer”
means
              Embraer-Empresa Brasileira de Aeronáutica S.A., a Brazilian
              corporation.

             

            “Airframe
              Manufacturer Agreements”
means,
              collectively, the Participation Agreement, [the OP Guaranty,]1
              the
              Purchase Agreement and the Consent and Agreement.

             

            “Amortization
              Amount”
means,
              with respect to any Equipment Note, as of any Payment Date, the amount
              determined by multiplying the percentage set forth opposite such Date
              on the
              Amortization Schedule by the Original Amount of such Equipment
              Note.

             

            “Amortization
              Schedule”
means,
              with respect to each Equipment Note, the amortization schedule for
              such
              Equipment Note delivered pursuant to Section 2.02 of the Trust
              Indenture.

             

            “Appraiser”
means
              a
              firm of internationally recognized, independent aircraft
              appraisers.

             

            “Average
              Life Date”
for
              any
              Equipment Note shall be the date which follows the time of determination
              by a
              period equal to the Remaining Weighted Average Life of such Equipment
              Note.
“Remaining Weighted Average Life” on a given date with respect to any Equipment
              Note shall be the number of days equal to the quotient obtained by
              dividing (a)
              the sum of each of the products obtained by multiplying (i) the amount
              of each
              then remaining scheduled payment of principal of such Equipment Note
              by (ii) the
              number of days from and including such 

             

            ________________________

            1. Delete
              if
              OP is not an Affiliate of Airframe Manufacturer.

             

            
               

              
                
                  
                    
                    

                  

                  
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            determination
              date to but excluding the date on which such payment of principal is
              scheduled
              to be made, by (b) the then outstanding principal amount of such Equipment
              Note.

             

            “Aviation
              Authority”
means
              the FAA or, if the Aircraft is permitted to be, and is, registered
              with any
              other Government Entity under and in accordance with Section 7.1.2 of the
              Lease, such other Government Entity.

             

            “Bankruptcy
              Code”
means
              the United States Bankruptcy Code, 11 U.S.C. § 101 et seq.

             

            “Bankruptcy
              Default”
means
              a
              Lease Event of Default under Section 14.5 of the Lease.

             

            “Base
              Lease Term”
means
              the period beginning on and including the Closing Date and ending on
              the
              Scheduled Expiration Date, or such earlier date on which the Term terminates
              in
              accordance with the provisions of the Lease.

             

            “Basic
              Pass Through Trust Agreement”
means
              the Pass Through Trust Agreement, dated September 25, 1997, between Lessee
              and Pass Through Trustee, but does not include any Trust
              Supplement.

             

            “Basic
              Rent”
means
              the rent payable for the Aircraft pursuant to Section 3.2.1 of the
              Lease.

             

            “Beneficial
              Owner”
when
              used in relation to an Equipment Note means a Person that, by reason
              of direct
              ownership, contract, share ownership or otherwise, has the right to
              receive or
              participate in receiving, directly or indirectly, payments of principal,
              interest or Make-Whole Amount in respect of such Equipment Note; provided
              that a
              Person shall not be deemed to be a Beneficial Owner of an Equipment
              Note solely
              because another Person in which such a Person owns common stock or
              other equity
              securities is a registered holder or Beneficial Owner of such Equipment
              Note
              unless such Person is an Affiliate of such other Person.

             

            “Bills
              of Sale”
means
              the FAA Bill of Sale and the Aircraft Bill of Sale.

             

            “Business
              Day”
means
              any day other than a Saturday, Sunday or other day on which commercial
              banks are
              authorized or required by law to close in New York, New York, Houston,
              Texas,
              Wilmington, Delaware, or Salt Lake City, Utah.

             

            “Cash
              Equivalents”
means
              the following securities (which shall mature within 90 days of the
              date of
              purchase thereof): (a) direct obligations of the U.S. Government;
              (b) obligations fully guaranteed by the U.S. Government;
              (c) certificates of deposit issued by, or bankers’ acceptances of, or time
              deposits or a deposit account with, Owner Trustee, Mortgagee or any
              bank, trust
              company or national banking association incorporated or doing business
              under the
              laws of the United States or any state thereof having a combined capital
              and
              surplus and retained earnings of at least $500,000,000 and having a
              rate of “C”
or better from the Thomson BankWatch Service; or (d) commercial paper of
              any issuer doing business under the Laws of the United States or one
              of the
              states thereof and in each case having a rating assigned to such commercial
              paper by Standard & Poor’s Rating Services or Moody’s Investors Service,
              Inc. equal to A1 or higher.

             

            
               

              
                
                  
                    
                    

                  

                  
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            “Change
              in Tax Law”
means
              any change or proposed change in the Code or the regulations promulgated
              thereunder or any change in the interpretation of the Code or such
              regulations
              in a decision by the United States Supreme Court, the United States
              Tax Court,
              the United States Claims Court or any of the United States Courts of
              Appeal or
              District Courts, or any issuance of an Internal Revenue Ruling, Revenue
              Procedure or administrative pronouncement by the Internal Revenue Service
              or the
              Department of the Treasury.

             

            “Citizen
              of the United States”
is
              defined in Section 40102(a)(15) of the Act and in the FAA
              Regulations.

             

            “Closing”
means
              the occurrence of the following concurrent events: (i) execution, authentication
              and delivery of the Equipment Notes in accordance with the Participation
              Agreement; (ii) [payment of the Commitments of the Loan Participants
              to Owner
              Trustee]2
              [purchase of the Aircraft by the Owner Trustee]3;
              (iii) lease of the Aircraft by Owner Trustee to Lessee pursuant to the
              Lease; and (iv) completion of the other events contemplated by the
              Participation
              Agreement to occur at the Closing.

             

            “Closing
              Date”
means
              the Business Day specified in Lease Supplement No. 1 as the Closing Date,
              which shall be the date on which the Closing occurs.

             

            “Code”
means
              the Internal Revenue Code of 1986, as amended; provided,
              that
              when used in relation to a Plan, “Code” shall mean the Internal Revenue Code of
              1986 and any regulations and rulings issued thereunder, all as amended
              and in
              effect from time to time.

             

            “Commitment”
means,
              for any [Loan]4
              Participant, the amount of its commitment set forth in Schedule 2 to
              the
              Participation Agreement.

             

            “Commitment
              Termination Date”
is
              defined in Schedule 3 to the Participation Agreement.

             

            “Consent
              and Agreement”
means
              the Manufacturer Consent and Agreement [TN], dated as of even date
              with the
              Participation Agreement, of Airframe Manufacturer.

             

            “Continuous
              Stay Period”
is
              defined in Section 4.04(a) of the Trust Indenture.

             

            “Corporate
              Trust Department”
or
              “Trust
              Office”
means
              the principal corporate trust office of Owner Trustee located from
              time to time
              at Owner Trustee’s address for notices under the Participation Agreement or such
              other office at which Owner Trustee’s corporate trust 

             

            ________________________

            2. Delete
              for New Aircraft.

             

            3. Insert
              for New Aircraft.

             

            4. Delete
              for New Aircraft.

             

            
               

              
                
                  
                    
                    

                  

                  
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            business
              shall be administered which Owner Trustee shall have specified by notice
              in
              writing to Lessee, Mortgagee and each Note Holder.

             

            “Corporate
              Trust Office”
means
              the principal office of Mortgagee located at Mortgagee’s address for notices
              under the Participation Agreement or such other office at which Mortgagee’s
              corporate trust business shall be administered which Mortgagee shall
              have
              specified by notice in writing to Lessee, Owner Trustee and each Note
              Holder.

             

            “CRAF”
means
              the Civil Reserve Air Fleet Program established pursuant to 10 U.S.C.
              § 9511-13 or any similar substitute program.

             

            “Debt”
means
              any liability for borrowed money, or any liability for the payment
              of money in
              connection with any letter of credit transaction or any other liabilities
              evidenced or to be evidenced by bonds, debentures, notes or other similar
              instruments.

             

            “Debt
              Rate”
means
              the rate per annum specified under the heading “Interest Rate” in
              Schedule I to the Trust Indenture.

             

            “Default”
means
              any event or condition that with the giving of notice or the lapse
              of time or
              both would become an Event of Default.

             

            “Delayed
              Closing Date”
means
              a
              delayed Closing Date notified to Lessee, each Participant, Owner Trustee
              and
              Mortgagee by Airframe Manufacturer pursuant to Section 4.3 of the
              Participation Agreement, which delayed Closing Date shall be a Business
              Day not
              later than the Commitment Termination Date.

             

            “Delivery
              Date”
means
              the date on which the Aircraft was leased to Lessee by Lessor, as lessor,
              under
              the [Existing]5
              Lease.

             

            “Deposit
              Agreement”
means
              the Deposit Agreement between the Depositary and the Escrow Agent,
              dated as of
              the Issuance Date, which relates to the Pass Through Trust, provided
              that,
              for purposes of any obligation of Lessee, no amendment, modification
              or
              supplement to, or substitution or replacement of, such Deposit Agreement
              shall
              be effective unless consented to by Lessee.

             

            “Depositary”
means
              Citibank, N.A., as Depositary under the Deposit Agreement.

             

            “Dollars,”
              “United
              States Dollars”
or
              “$”
means
              the lawful currency of the United States.

             

            “DOT”
means
              the Department of Transportation of the United States or any Government
              Entity
              succeeding to the functions of such Department of Transportation.

             

            ________________________

            5. Delete
              for New Aircraft.

             

            
               

              
                
                  
                    
                    

                  

                  
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            “Eligible
              Account”
means
              an account established by and with an Eligible Institution at the request
              of the
              Mortgagee, which institution agrees, for all purposes of the UCC including
              Article 8 thereof, that (a) such account shall be a “securities account” (as
              defined in Section 8-501 of the UCC), (b) all property (other than
              cash)
              credited to such account shall be treated as a “financial asset” (as defined in
              Section 8-102(9) of the UCC), (c) the Mortgagee shall be the “entitlement
              holder” (as defined in Section 8-102(7) of the UCC) in respect of such account,
              (d) it will comply with all entitlement orders issued by the Mortgagee
              to the
              exclusion of the Lessee and the Owner Trustee, and (e) the “securities
              intermediary jurisdiction” (under Section 8-110(e) of the UCC) shall be the
              State of New York.

             

            “Eligible
              Institution”
means
              the corporate trust department of (a) Wilmington Trust Company, acting
              solely in
              its capacity as a “securities intermediary” (as defined in Section 8-102(14) of
              the UCC), or (b) a depository institution organized under the laws
              of the United
              States of America or any one of the states thereof or the District
              of Columbia
              (or any U.S. branch of a foreign bank), which has a long-term unsecured
              debt
              rating from Moody’s and Standard & Poor’s of at least A-3 or its
              equivalent.

             

            “Enforcement
              Date”
is
              defined in Section 4.03 of the Trust Indenture.

             

            “Engine”
means
              (a) each of the engines manufactured by Engine Manufacturer and identified
              by Engine Manufacturer’s model number and Engine Manufacturer’s serial number
              set forth in Lease Supplement No. 1, and any Replacement Engine, in any
              case whether or not from time to time installed on such Airframe or
              installed on
              any other airframe or aircraft, and (b) any and all Parts incorporated or
              installed in or attached or appurtenant to such engine, and any and
              all Parts
              removed from such engine, unless title to such Parts shall not be vested
              in
              Lessor in accordance with Section 8.1 and Annex C of the Lease. Upon
              substitution of a Replacement Engine under and in accordance with the
              Lease,
              such Replacement Engine shall become subject to the Lease and shall
              be an
“Engine” for all purposes of the Lease and the other Operative Agreements and
              thereupon the Engine for which the substitution is made shall no longer
              be
              subject to the Lease, and such replaced Engine shall cease to be an
              “Engine.”

             

            “Engine
              Manufacturer”
means
              Rolls-Royce Company, formerly known as Allison Engine Company, Inc.,
              a Delaware
              corporation.

             

            “Equipment
              Note Register”
is
              defined in Section 2.07 of the Trust Indenture.

             

            “Equipment
              Notes”
means
              and includes any equipment notes issued under the Trust Indenture in
              the form
              specified in Section 2.01 thereof (as such form may be varied pursuant to
              the terms of the Trust Indenture) and any Equipment Note issued under
              the Trust
              Indenture in exchange for or replacement of any Equipment Note.

             

            “Equity
              Advisor”
has
              the
              meaning provided in Schedule 3 to the Participation Agreement.

             

            “ERISA”
means
              the Employee Retirement Income Security Act of 1974 and any regulations
              and
              rulings issued thereunder all as amended and in effect from time to
              time.

             

            
               

              
                
                  
                    
                    

                  

                  
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            “Escrow
              Agent”
means
              Wells Fargo Bank Northwest, National Association, as Escrow Agent under
              the
              Escrow Agreement.

             

            “Escrow
              Agreement”
means
              the Escrow and Paying Agent Agreement, among the Escrow Agent, the
              Paying Agent,
              certain initial purchasers of the Pass Through Certificates named therein
              and
              the Pass Through Trustee, dated as of the Issuance Date, which relates
              to the
              Pass Through Trust, provided
              that,
              for purposes of any obligation of Lessee, no amendment, modification
              or
              supplement to, or substitution or replacement of, such Escrow Agreement
              shall be
              effective unless consented to by Lessee.

             

            “Event
              of Default”
is
              defined in Section 4.02 of the Trust Indenture.

             

            “Event
              of Loss”
means,
              with respect to the Aircraft, Airframe or any Engine, any of the following
              circumstances, conditions or events with respect to such property,
              for any
              reason whatsoever:

             

            
              	 	
                      (a)

                    	
                      the
                        destruction of such property, damage to such property beyond
                        economic
                        repair or rendition of such property permanently unfit for
                        normal use by
                        Lessee;

                    

            

             

            
              	 	
                      (b)

                    	
                      the
                        actual or constructive total loss of such property or any
                        damage to such
                        property, or requisition of title or use of such property,
                        which results
                        in an insurance settlement with respect to such property
                        on the basis of a
                        total loss or constructive or compromised total
                        loss;

                    

            

             

            
              	 	
                      (c)

                    	
                      any
                        theft, hijacking or disappearance of such property for a
                        period of 180
                        consecutive days or more or, if earlier, the end of the
                        Term;

                    

            

             

            
              	 	
                      (d)

                    	
                      any
                        seizure, condemnation, confiscation, taking or requisition
                        (including loss
                        of title) of such property by any Government Entity or purported
                        Government Entity (other than a requisition of use by the
                        U.S. Government)
                        for a period exceeding 180 consecutive days or, if earlier,
                        at the end of
                        the Term;

                    

            

             

            
              	 	
                      (e)

                    	
                      any
                        seizure, condemnation, confiscation, taking or requisition
                        of use of such
                        property by the U.S. Government that continues until the
                        last day of the
                        Term, provided
                        that no such Event of Loss shall exist if Lessor shall have
                        elected not to
                        treat such event as an Event of Loss pursuant to Section
                        10.6 of the
                        Lease; and 

                    

            

             

            
              	 	
                      (f)

                    	
                      as
                        a result of any law, rule, regulation, order or other action
                        by the
                        Aviation Authority or by any Government Entity of the government
                        of
                        registry of the Aircraft or by any Government Entity otherwise
                        having
                        jurisdiction over the operation or use of the Aircraft, the
                        use of such
                        property in the normal course of Lessee’s business of passenger air
                        transportation is prohibited for a period of 180 consecutive
                        days, unless
                        Lessee, prior to the expiration of such 180 day period, shall
                        have
                        undertaken and shall be diligently carrying forward such
                        steps as may be
                        necessary or desirable to permit the normal use of such property
                        by
                        Lessee, but in any event if such use shall have been prohibited
                        for a
                        period of 720 days, provided that no Event of Loss shall
                        be deemed to have
                        occurred if such prohibition has been applicable to Lessee’s (or a
                        Permitted Sublessee’s) entire 

                    

            

             

            
               

              
                
                  
                    
                    

                  

                  
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            U.S.
              fleet of such property and Lessee (or a Permitted Sublessee), prior
              to the
              expiration of such 720-day period, shall have conformed at least one
              unit of
              such property in its fleet to the requirements of any such law, rule,
              regulation, order or other action and commenced regular commercial
              use of the
              same in such jurisdiction and shall be diligently carrying forward,
              in a manner
              which does not discriminate against such property in so conforming
              such
              property, steps which are necessary or desirable to permit the normal
              use of
              such property by Lessee, but in any event if such use shall have been
              prohibited
              for a period of three years or such use shall be prohibited at the
              expiration of
              the Term.

             

            “Excluded
              Payments”
means
              (i) indemnity payments paid or payable by Lessee to or in respect of
              Owner
              Participant, or Owner Trustee in its individual capacity, their respective
              Affiliates, successors and permitted assigns and their directors, officers,
              employees, servants and agents pursuant to Section 9 of the Participation
              Agreement or any corresponding payments under the Lease, (ii) proceeds
              of public
              liability insurance paid or payable as a result of insurance claims
              made, or
              losses suffered, by Owner Trustee in its individual capacity or by
              Owner
              Participant, that are payable directly to Owner Trustee in its individual
              capacity, or Owner Participant, respectively, for their own account,
              (iii)
              proceeds of insurance maintained with respect to the Aircraft by Owner
              Participant or any Affiliate thereof for its or their own account or
              benefit
              (whether directly or through Owner Trustee) and permitted under Section
              11.2 of
              the Lease, (iv) all payments required to be made under the Tax Indemnity
              Agreement by Lessee whether or not denominated as Supplemental Rent,
              (v) any
              amount payable to the Owner Participant by any transferee as the purchase
              price
              of the Owner Participant’s interest in the Trust Estate, (vi) any interest that
              pursuant to the Operative Agreements may from time to time accrue in
              respect of
              any of the amounts described in clauses (i) through (v) above, (vii)
              proceeds of any right to enforce the payment of any amount described
              in clauses
              (i) through (vi) above (provided, that
              the
              rights referred to in this clause (vii) shall not be deemed to include
              the
              exercise of any remedies provided for in the Lease other than the right
              to sue
              for specific performance of any covenant to make such payment or to
              sue for
              damages in respect of the breach of any such covenant) and (viii) any
              right to
              exercise any election or option or make any decision or determination,
              or to
              give or receive any notice, consent, waiver or approval, or to take
              any other
              action in respect of, but in each case, only to the extent relating
              to, any
              Excluded Payments.

             

            [“Existing
              Lease”
has
              the
              meaning provided in Schedule 3 to the Participation Agreement.]6

             

            [“Existing
              Participation Agreement”
has
              the
              meaning provided in Schedule 3 to the Participation Agreement.]7

             

            ________________________

            6. Delete
              for New Aircraft.

             

            7. Delete
              for New Aircraft.

             

            
               

              
                
                  
                    
                    

                  

                  
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            [“Existing
              Sublease”
means
              the Aircraft Sublease Agreement, dated the date of the Existing Participation
              Agreement, between Lessee and Express relating to the Aircraft.]8

             

            “Expense
              Limit”
has
              the
              meaning provided in Schedule 3 to the Participation Agreement.

             

            “Expenses”
means
              any and all liabilities, obligations, losses, damages, settlements,
              penalties,
              claims, actions, suits, costs, expenses and disbursements (including,
              without
              limitation, reasonable fees and disbursements of legal counsel, accountants,
              appraisers, inspectors or other professionals, and costs of
              investigation).

             

            “Express”
means
              ExpressJet Airlines, Inc., a Delaware corporation.

             

            “Express
              Sublease”
means
              the Permitted Sublease, dated as of the date of the Participation Agreement,
              between Lessee and Express relating to the Aircraft.

             

            “FAA”
means
              the Federal Aviation Administration of the United States or any Government
              Entity succeeding to the functions of such Federal Aviation
              Administration.

             

            “FAA
              Bill of Sale”
means
              a
              bill of sale for the Aircraft on AC Form 8050-2 (or such other form
              as may be
              approved by the FAA) delivered to Owner Trustee on the Delivery Date
              by
              Seller.

             

            “FAA
              Filed Documents”
means
              the Lease, Lease Supplement No. 1, the Express Sublease, the Trust
              Indenture, the Trust Agreement, the initial Trust Indenture Supplement,
              the FAA
              Bill of Sale, [the Termination Agreements]9
              and an
              application for registration of the Aircraft with the FAA in the name
              of Owner
              Trustee.

             

            “FAA
              Regulations”
means
              the Federal Aviation Regulations issued or promulgated pursuant to
              the Act from
              time to time.

             

            “Fair
              Market Rental Value”
means
              the fair market rental value in Dollars for the Aircraft that would
              apply in an
              arm’s-length transaction between an informed and willing lessee under no
              compulsion to lease, and an informed and willing lessor under no compulsion
              to
              lease, the Aircraft, for the applicable Renewal Lease Term, assuming
              that (a)
              the Aircraft has been maintained in accordance with, and is in the
              condition
              required by, the Lease, (b) payments of rent would be made monthly,
              and (c) the
              Aircraft would be leased during any such Renewal Term on the same terms
              and
              conditions as are set forth in the Lease with respect to the Base Lease
              Term.

             

            ________________________

            8. Delete
              for New Aircraft.

             

            9. Delete
              for New Aircraft.

             

            
              
                
                  
                    
                    

                  

                  
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            “Fair
              Market Sales Value”
means
              the fair market sales value in Dollars for the Aircraft that would
              apply in an
              arm’s-length transaction between an informed and willing buyer under no
              compulsion to buy, and an informed and willing seller under no compulsion
              to
              sell, the Aircraft, in a transaction that would close on or about the
              relevant
              time of determination, assuming (except as otherwise provided in Section
              15.4 of
              the Lease) that (a) the Aircraft has been maintained in accordance with,
              and is in the condition required by, the Lease and (b) the Aircraft would
              be delivered to such informed and willing buyer in the return condition
              required
              by the Lease.

             

            “Financing
              Statements”
means,
              collectively, [(a)]10 UCC-1
              financing statements (i) covering the Trust Indenture Estate, by Owner
              Trustee, as debtor, showing Mortgagee as secured party, for filing
              in Utah and
              each other jurisdiction that, in the opinion of Mortgagee, is necessary
              to
              perfect its Lien on the Trust Indenture Estate and (ii) covering the Lease
              and the Aircraft, as a precautionary matter, by Lessee, as lessee,
              showing Owner
              Trustee as lessor and Mortgagee as assignee of Owner Trustee, for filing
              in
              Delaware and each other jurisdiction that, in the opinion of Owner
              Trustee and
              Mortgagee, is reasonably desirable [and (b) UCC-3 financing statements
              evidencing the termination of the Existing Lease and the Existing Sublease,
              for
              filing in Delaware and each other jurisdiction that, in the opinion
              of Owner
              Trustee and Mortgagee, is reasonably desirable].11

             

            “GAAP”
means
              generally accepted accounting principles as set forth in the statements
              of
              financial accounting standards issued by the Financial Accounting Standards
              Board of the American Institute of Certified Public Accountants, as
              such
              principles may at any time or from time to time be varied by any applicable
              financial accounting rules or regulations issued by the SEC and, with
              respect to
              any person, shall mean such principles applied on a basis consistent
              with prior
              periods except as may be disclosed in such person’s financial
              statements.

             

            “Government
              Entity”
means
              (a) any federal, state, provincial or similar government, and any
              body, board, department, commission, court, tribunal, authority, agency
              or other
              instrumentality of any such government or otherwise exercising any
              executive,
              legislative, judicial, administrative or regulatory functions of such
              government
              or (b) any other government entity having jurisdiction over any matter
              contemplated by the Operative Agreements or relating to the observance
              or
              performance of the obligations of any of the parties to the Operative
              Agreements.

             

            “Indemnitee”
means
              (i) Wells Fargo and Owner Trustee, (ii) WTC and Mortgagee, (iii) each
              separate
              or additional trustee appointed pursuant to the Trust Agreement or
              the Trust
              Indenture, (iv) each Participant, (v) the Trust Estate and the Trust
              Indenture
              Estate, (vi) each Affiliate of the persons described in clauses (i)
              through
              (iv), inclusive, (vii) the respective directors, officers, employees,
              agents and
              servants of each of the persons described in clauses (i) 

             

            ________________________

            10. Delete
              for New Aircraft.

             

            11. Delete
              for New Aircraft.

             

            
              
                
                  
                    
                    

                  

                  
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            through
              (iv) inclusive and in clause (vi), (viii) the successors and permitted
              assigns
              of the persons described in clauses (i) through (iv), inclusive, and
              in clauses
              (vi) and (vii) and (ix) the Pass Through Indemnitees; provided that
              the Pass
              Through Indemnitees are Indemnitees only for purposes of Section 9.1
              of the
              Participation Agreement. If any Indemnitee is Airframe Manufacturer
              or Engine
              Manufacturer or any subcontractor or supplier of either thereof, such
              Person
              shall be an Indemnitee only in its capacity as Owner Participant, Loan
              Participant or Note Holder.

             

            “Indemnity
              Agreement”
means
              the agreement, dated as of September 14, 2005, between Lessee and Airframe
              Manufacturer, which states that it is the Indemnity Agreement for purposes
              of
              the Pass Through Certificates.

             

            “Indenture
              Agreements”
means
              the Participation Agreement, the Lease, the Purchase Agreement, the
              Purchase
              Agreement Assignment, the Consent and Agreement, the Bills of Sale
              and any other
              contract, agreement or instrument from time to time assigned or pledged
              under
              the Trust Indenture.

             

            “Indenture
              Default”
means
              any condition, circumstance, act or event that, with the giving of
              notice, the
              lapse of time or both, would constitute an Indenture Event of
              Default.

             

            “Indenture
              Event of Default”
means
              any one or more of the conditions, circumstances, acts or events set
              forth in
              Section 4.02 of the Trust Indenture.

             

            “Indenture
              Indemnitee”
means
              (i) WTC and the Mortgagee, (ii) each separate or additional trustee
              appointed pursuant to the Trust Indenture, (iii) the Subordination
              Agent, (iv)
              the Liquidity Provider, (v) the Pass Through Trustee, (vi) the Paying
              Agent,
              (vii) the Escrow Agent and (viii) each of the respective directors,
              officers,
              employees, agents and servants of each of the persons described in
              clauses (i)
              through (vii) inclusive above.

             

            [“Initial
              Purchase Agreement Assignment”
means
              the Purchase Agreement Assignment [TN], dated as of even date with
              the
              Participation Agreement, between Express and Seller.]12

             

            “Intercreditor
              Agreement”
means
              that certain Intercreditor Agreement among the Pass Through Trustee,
              the
              Liquidity Provider and the Subordination Agent, dated as of the Issuance
              Date,
provided
              that,
              for purposes of any obligation of Lessee, no amendment, modification
              or
              supplement to, or substitution or replacement of, such Intercreditor
              Agreement
              shall be effective unless consented to by Lessee.

             

            “IRS”
means
              the Internal Revenue Service of the United States or any Government
              Entity
              succeeding to the functions of such Internal Revenue Service.

             

            “Issuance
              Date”
means
              September 22, 2005.

             

            ________________________

            12.  Insert
              for New Aircraft.

             

            
               

              
                
                  
                    
                    

                  

                  
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            “Law”
means
              (a) any constitution, treaty, statute, law, decree, regulation, order,
              rule
              or directive of any Government Entity, and (b) any judicial or
              administrative interpretation or application of, or decision under,
              any of the
              foregoing.

             

            “Lease”
or
              “Lease
              Agreement”
means
              the Lease Agreement [TN], dated as of even date with the Participation
              Agreement, between Owner Trustee and Lessee.

             

            “Lease
              Default”
means
              any condition, circumstance, act or event that, with the giving of
              notice, the
              lapse of time or both, would constitute a Lease Event of Default.

             

            “Lease
              Event of Default”
means
              any one or more of the conditions, circumstances, acts or events set
              forth in
              Section 14 of the Lease.

             

            “Lease
              Supplement”
means
              a
              supplement to the Lease, in the form of Exhibit A to the Lease.

             

            “Lease
              Supplement No. 1”
means
              the initial Lease Supplement, dated the Closing Date.

             

            “Lessee”
means
              Continental Airlines, Inc., a Delaware corporation.

             

            “Lessee
              Operative Agreements”
means
              the Participation Agreement, the Lease, Lease Supplement No. 1, the
              Express
              Sublease[, the Termination Agreement with respect to the Existing
              Sublease]13
              and the
              Tax Indemnity Agreement.

             

            “Lessee
              Person”
means
              Lessee, any sublessee, assignee, successor or other user or person
              in possession
              of the Aircraft, Airframe or an Engine during the Term with or without
              color of
              right, or any Affiliate of any of the foregoing (excluding any Tax
              Indemnitee or
              any related Tax Indemnitee with respect thereto, or any person using
              or claiming
              any rights with respect to the Aircraft, Airframe or an Engine directly
              by or
              through any of the persons in this parenthetical, but not excluding
              any Person
              claiming directly or indirectly through or under the Lease).

             

            “Lessor”
means
              Owner Trustee in its capacity as lessor under the Lease.

             

            “Lessor
              Lien”
means,
              with respect to any person and in respect of any property (including,
              without
              limitation, the Trust Estate, the Trust Indenture Estate, the Aircraft,
              Airframe, Engines, Parts or Aircraft Documents) or any payments, any
              Lien on
              such property or payments which (a) arises from claims against such person
              (if such person is a trustee, whether in its individual capacity or
              in its
              capacity as a trustee) not related to any of the transactions contemplated
              by
              the Operative Agreements, (b) results from acts or omissions of such person
              (if such person is a trustee, whether in its individual capacity or
              in its
              capacity as a trustee) in violation of such person’s obligations under any of
              the terms of the Operative Agreements, or not related to the transactions
              contemplated by the Operative Agreements, (c) is imposed as a result
              

             

            ________________________

            13. Delete
              for New Aircraft.

             

            
               

              
                
                  
                    
                    

                  

                  
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            of Taxes
              against such person (if such person is a trustee, whether in its individual
              capacity or in its capacity as a trustee) or any of its Affiliates
              not required
              to be indemnified by Lessee under the Participation Agreement, or (d)
              claims
              against such person arising out of any transfer by such person of its
              interest
              in the Aircraft, the Trust Estate or the Operative Agreements, other
              than a
              Transfer permitted by the terms of the Operative Agreements or pursuant
              to the
              exercise of remedies set forth in Section 15 of the Lease.

             

            “Lessor’s
              Cost”
means
              the amount paid by Owner Trustee to Airframe Manufacturer to purchase
              the
              Aircraft pursuant to the Purchase Agreement, and is designated by Dollar
              amount
              in Schedule 3 to the Participation Agreement.

             

            “Lien”
means
              any mortgage, pledge, lien, charge, claim, encumbrance, lease or security
              interest affecting the title to or any interest in property.

             

            “Liquidity
              Facility”
means
              the Revolving Credit Agreement between the Subordination Agent, as
              borrower, and
              the Liquidity Provider, dated as of the Issuance Date, provided
              that,
              for the purposes of any obligation of Lessee, no amendment, modification
              or
              supplement to, or substitution or replacement of, such Liquidity Facility
              shall
              be effective unless consented to by Lessee.

             

            “Liquidity
              Provider”
means
              Landesbank Baden-Württemburg, as Liquidity Provider under the Liquidity
              Facility, or any successor thereto.

             

            “Loan
              Participant”
means,
              until the Closing shall have been consummated, the Pass Through Trustee,
              and
              after the Closing shall have been consummated, each Note Holder.

             

            “Loss
              Payment Date”
means
              the date on which payment is due pursuant to Section 10.1.2(a)(i) of
              the
              Lease.

             

            “Maintenance
              Program”
is
              defined in Annex C to the Lease.

             

            “Majority
              in Interest of Note Holders”
means
              as of a particular date of determination, the holders of a majority
              in aggregate
              unpaid Original Amount of all Equipment Notes outstanding as of such
              date
              (excluding any Equipment Notes held by Owner Trustee, Lessee, or Owner
              Participant or any Affiliate of any such party or any interests of
              Owner Trustee
              or Owner Participant therein by reason of subrogation pursuant to Section
              4.03
              of the Trust Indenture (unless all Equipment Notes then outstanding
              shall be
              held by Owner Trustee, Lessee, Owner Participant or any Affiliate of
              any
              thereof)); provided
              that for
              the purposes of directing any action or casting any vote or giving
              any consent,
              waiver or instruction hereunder any Note Holder of an Equipment Note
              or
              Equipment Notes may allocate, in such Note Holder’s sole discretion, any
              fractional portion of the principal amount of such Equipment Note or
              Equipment
              Notes in favor of or in opposition to any such action, vote, consent,
              waiver or
              instruction.

             

            “Make-Whole
              Amount”
means,
              with respect to any Equipment Note, an amount (as determined by an
              independent
              investment banker of national standing) equal to the excess, if any,
              of (a) the
              present value of the remaining scheduled payments of principal and
              interest to
              maturity of such Equipment Note computed by discounting such payments
              on a
              monthly basis on each Payment Date (assuming a 360-day year of twelve
              30-day
              months) using a discount rate 

             

             

            
              
                
                  
                    
                    

                  

                  
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            equal
              to
              the Treasury Yield over (b) the outstanding principal amount of such
              Equipment
              Note plus accrued interest to the date of determination. For purposes
              of
              determining the Make-Whole Amount, “Treasury Yield” means, at the date of
              determination with respect to any Equipment Note, the sum of (i) 50 basis
              points and (ii) the interest rate (expressed as a decimal and, in the
              case of
              United States Treasury bills, converted to a bond equivalent yield)
              determined
              to be the per annum rate equal to the monthly yield to maturity for
              United
              States Treasury securities maturing on the Average Life Date of such
              Equipment
              Note and trading in the public securities markets either as determined
              by
              interpolation between the most recent weekly average yield to maturity
              for two
              series of United States Treasury securities, trading in the public
              securities
              markets, (A) one maturing as close as possible to, but earlier than,
              the Average
              Life Date of such Equipment Note and (B) the other maturing as close
              as possible
              to, but later than, the Average Life Date of such Equipment Note, in
              each case
              as published in the most recent H.15(519) or, if a weekly average yield
              to
              maturity for United States Treasury securities maturing on the Average
              Life Date
              of such Equipment Note is reported on the most recent H.15(519), such
              weekly
              average yield to maturity as published in such H.15(519). “H.15(519)” means the
              weekly statistical release designated as such, or any successor publication,
              published by the Board of Governors of the Federal Reserve System.
              The date of
              determination of a Make-Whole Amount shall be the third Business Day
              prior to
              the applicable payment or redemption date and the “most recent H.15(519)” means
              the H.15(519) published prior to the close of business on the third
              Business Day
              prior to the applicable payment or redemption date.

             

            “Material
              Adverse Change”
means,
              with respect to any person, any event, condition or circumstance that
              materially
              and adversely affects such person’s business or consolidated financial
              condition, or its ability to observe or perform its obligations, liabilities
              and
              agreements under, or affect the validity or enforceability of the Operative
              Agreements.

             

            “Mortgaged
              Property”
is
              defined in Section 3.03 of the Trust Indenture.

             

            “Mortgagee”
means
              Wilmington Trust Company, a Delaware banking corporation, not in its
              individual
              capacity but solely as loan trustee under the Trust Indenture.

             

            “Mortgagee
              Agreements”
means,
              collectively, the Participation Agreement, the Trust Indenture and
              any Trust
              Indenture Supplement.

             

            “Mortgagee
              Event”
means
              (i) in the event of a reorganization proceeding involving the Lessee under
              Chapter 11 of the Bankruptcy Code, (A) the trustee in such proceeding
              or the
              Lessee not assuming or agreeing to perform its obligations under the
              Lease, as
              contemplated under Section 1110, during the 60-day period under Section
              1110(a)(2)(A) of the Bankruptcy Code (or such longer period as may
              apply under
              Section 1110(b) of the Bankruptcy Code) or (B) at any time after agreeing
              to perform such obligations, such trustee or the Lessee ceasing to
              perform such
              obligations with the result that the Continuous Stay Period comes to
              an end or
              (ii) either the Equipment Notes shall have become due and payable pursuant
              to Section 4.04(b) of the Trust Indenture or Mortgagee has taken action or
              notified Owner Trustee that it intends to take action to foreclose
              the Lien of
              the Trust Indenture or otherwise commence the exercise of any significant
              remedy
              in accordance with Section 4.04(a) of the Trust Indenture.

             

            
               

              
                
                  
                    
                    

                  

                  
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            “Net
              Economic Return”
means
              the Owner Participant’s net after-tax yield utilizing the multiple investment
              sinking fund method of analysis and aggregate net after-tax cash flow,
              computed
              on the basis of the same methodology and assumptions as were utilized
              by the
              initial Owner Participant in determining Stipulated Loss Value percentages
              and
              Termination Value percentages, as of the Closing Date.

             

            “Net
              Worth”
means,
              for any person, the excess of its total assets over its total liabilities
              in
              accordance with GAAP. 

             

            “Non-U.S.
              Person”
means
              any Person other than a United States person, as defined in Section
              7701(a)(30)
              of the Code.

             

            “Note
              Holder”
means
              at any time each registered holder of one or more Equipment Notes.

             

            “Note
              Purchase Agreement”
means
              the Note Purchase Agreement, dated as of the Issuance Date, among Continental
              Airlines, Inc., the Subordination Agent, the Escrow Agent, the Paying
              Agent and
              the Pass Through Trustee under the Pass Through Trust Agreement providing
              for,
              among other things, the issuance and sale of certain equipment notes,
              provided
              that,
              for purposes of any obligation of Lessee, no amendment, modification
              or
              supplement to, or substitution or replacement of, such Agreement shall
              be
              effective unless consented to by Lessee.

             

            “Obsolete
              Part”
is
              defined in Section D of Annex C to the Lease.

             

            “Officer’s
              Certificate”
means,
              in respect of any party to the Participation Agreement, a certificate
              signed by
              the Chairman, the President, any Vice President (including those with
              varying
              ranks such as Executive, Senior, Assistant or Staff Vice President),
              the
              Treasurer or the Secretary of such party.

             

            “Operative
              Agreements”
means,
              collectively, the Participation Agreement, the Trust Agreement, the
              Purchase
              Agreement Assignment, the Consent and Agreement, the Lease, Lease Supplement
              No. 1, the Trust Indenture, the initial Trust Indenture Supplement, the
              Bills of Sale, the Tax Indemnity Agreement[, the Termination
              Agreements]14
              and the
              Equipment Notes.

             

            “Operative
              Indentures”
means
              each of the indentures under which notes have been issued and purchased
              by the
              Pass Through Trustee.

             

            [“OP
              Guarantor”
means
              the Airframe Manufacturer.]15

             

            ________________________

            14. Delete
              for New Aircraft.

             

            15. Insert
              if
              OP is an Affiliate of Airframe Manufacturer.

             

            
               

              
                
                  
                    
                    

                  

                  
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            [“OP
              Guaranty”
means
              the Guaranty, dated as of the date of the Participation Agreement,
              providing,
              among other things, for the guaranty by the OP Guarantor of Owner Participant’s
              obligations under the Operative Agreements.]16

             

            “OP
              Jurisdiction”
is
              defined in Schedule 3 to the Participation Agreement.

             

            “Original
              Amount,”
with
              respect to an Equipment Note, means the stated original principal amount
              of such
              Equipment Note and, with respect to all Equipment Notes, means the
              aggregate
              stated original principal amounts of all Equipment Notes.

             

            “Owner
              Participant”
means
              the person executing the Participation Agreement as “Owner Participant” or, if a
              second person becomes an “Owner Participant” pursuant to Section 10.1.1 of
              the Participation Agreement, both of such persons; provided
              that if
              an Owner Participant Transfers 100% of its interest to a successor
              Owner
              Participant, such transferring Owner Participant shall thereafter no
              longer be
              considered an “Owner Participant.”

             

            “Owner
              Participant Agreements”
means,
              collectively, the Participation Agreement, the Tax Indemnity Agreement
              and the
              Trust Agreement.

             

            “Owner
              Participant’s Percentage”
means
              the percentage of Lessor’s Cost allocated to the Owner Participant in
              Schedule 2 to the Participation Agreement.

             

            “Owner
              Trustee”
means
              Wells Fargo Bank Northwest, National Association, a national banking
              association, not in its individual capacity, except as expressly provided
              in any
              Operative Agreement, but solely as Owner Trustee under the Trust
              Agreement.

             

            “Owner
              Trustee Agreements”
means,
              collectively, the Participation Agreement, the Lease, Lease Supplement
              No. 1,
              the Trust Agreement, the Trust Indenture, the initial Trust Indenture
              Supplement, the Equipment Notes and the Purchase Agreement
              Assignment.

             

            “Participants”
means,
              collectively, Owner Participant and each Loan Participant and “Participant”
means Owner Participant or a Loan Participant, individually.

             

            “Participation
              Agreement”
means
              the Participation Agreement [TN] dated as of [DD] among Lessee, Owner
              Participant, Owner Trustee, the Pass Through Trustee, Subordination
              Agent,
              Mortgagee and Airframe Manufacturer.

             

            “Parts”
means
              all appliances, parts, components, avionics, landing gear, instruments,
              appurtenances, accessories, furnishings, seats and other equipment
              of whatever
              nature (other than (a) Engines or engines, and (b) any items leased
              by Lessee
              from a third party other than Lessor)), that may from time to time
              be installed
              or incorporated in or attached or appurtenant to the Airframe or any
              Engine.

             

            ________________________

            16. Insert
              if
              OP is an Affiliate of Airframe Manufacturer.

             

             

            
               

              
                
                  
                    
                    

                  

                  
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            “Pass
              Through Agreements”
means
              the Pass Through Trust Agreement, the Note Purchase Agreement, the
              Deposit
              Agreement, the Escrow Agreement, the Intercreditor Agreement, the Liquidity
              Facility and the Fee Letter (as defined in the Intercreditor Agreement),
              provided,
              that no
              amendment, modification or supplement to, or substitution or replacement
              of, any
              such Fee Letter shall be effective for purposes of any obligation of
              Lessee,
              unless consented to by Lessee.

             

            “Pass
              Through Certificates”
means
              the pass through certificates issued by the Pass Through Trust (and
              any other
              pass through certificates for which such pass through certificates
              may be
              exchanged).

             

            “Pass
              Through Indemnitees”
means
              (i) the Subordination Agent, the Paying Agent, the Escrow Agent, the
              Liquidity
              Provider and the Pass Through Trustee, (ii) each Affiliate of a person
              described
              in the preceding clause (i), (iii) the respective directors, trustees,
              officers,
              employees, agents and servants of each of the persons described in
              the preceding
              clauses (i) and (ii) and (iv) the successors and permitted assigns
              of the
              persons described in the preceding clauses (i), (ii) and (iii).

             

            “Pass
              Through Trust”
means
              the pass through trust created under the Pass Through Trust
              Agreement.

             

            “Pass
              Through Trust Agreement”
means
              the Trust Supplement, dated as of the Issuance Date, by and between
              the Lessee
              and Pass Through Trustee, together with the Basic Pass Through Trust
              Agreement.

             

            “Pass
              Through Trustee”
means
              Wilmington Trust Company, a Delaware banking corporation, in its capacity
              as
              trustee under the Pass Through Trust Agreement.

             

            “Pass
              Through Trustee Agreements”
              means
              the Participation Agreement, the Pass Through Trust Agreement, the
              Note Purchase
              Agreement, the Deposit Agreement, the Escrow Agreement and the Intercreditor
              Agreement.

             

            “Paying
              Agent”
means
              Wilmington Trust Company, as Paying Agent under the Escrow
              Agreement.

             

            “Payment
              Date”
means
              the first day of each month during the Term, commencing with
              [____________________].

             

            “Payment
              Default”
means
              the failure by Lessee to pay any amount of Basic Rent, Renewal Rent,
              Stipulated
              Loss Value or Termination Value when due.

             

            “Payment
              Due Rate”
is
              defined in Schedule 1 to the Lease.

             

            “Payment
              Period”
means
              each of the consecutive monthly periods during the Term ending on a
              Payment
              Date, the first such period commencing on and including the Closing
              Date and
              being other than monthly.

             

            
               

              
                
                  
                    
                    

                  

                  
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            “Permitted
              Air Carrier”
means
              (i) any Permitted Foreign Air Carrier, (ii) any person approved in
              writing by
              Lessor or (iii) any U.S. Air Carrier.

             

            “Permitted
              Country”
means
              any country listed on Schedule 5 to the Lease.

             

            “Permitted
              Foreign Air Carrier”
means
              any air carrier with its principal executive offices in any Permitted
              Country
              and which is authorized to conduct commercial airline operations and
              to operate
              jet aircraft similar to the Aircraft under the applicable Laws of such
              Permitted
              Country.

             

            “Permitted
              Government Entity”
means
              (i) the U.S. Government or (ii) any Government Entity if the Aircraft
              is then
              registered under the Laws of the country of such Government Entity.

             

            “Permitted
              Institution”
means
              any bank, trust company, insurance company, financial institution,
              partnership,
              limited liability company or corporation (other than, without Lessee’s consent,
              a commercial air carrier, a commercial aircraft operator, a freight
              forwarder or
              Affiliate of any of the foregoing), in each case with a combined capital
              and
              surplus or net worth of at least $25,000,000.

             

            “Permitted
              Lien”
means
              any Lien described in clauses (a) through (f), inclusive, of Section 6
              of the Lease.

             

            “Permitted
              Sublease”
means
              a
              sublease or sub-sublease permitted under Section 7.2.7 of the
              Lease.

             

            “Permitted
              Sublessee”
means
              the sublessee under a Permitted Sublease.

             

            “Persons”
or
              “persons”
means
              individuals, firms, partnerships, joint ventures, trusts, trustees,
              Government
              Entities, organizations, associations, corporations, limited liability
              companies, government agencies, committees, departments, authorities
              and other
              bodies, corporate or incorporate, whether having distinct legal status
              or not,
              or any member of any of the same.

             

            “Plan”
means
              any employee benefit plan within the meaning of Section 3(3) of ERISA, or
              any plan within the meaning of Section 4975(e)(1) of the Code.

             

            “Preliminary
              Notice”
is
              defined in Section 17.1 of the Lease.

             

            “Premium
              Termination Date”
means
              October 22, 2014.

             

            “PTT
              Percentage”
means,
              with respect to the Pass Through Trustee, the percentage of Lessor’s Cost
              allocated to such Pass Through Trustee in Schedule 2 to the Participation
              Agreement.

             

            “Purchase
              Agreement”
means
              the Purchase Agreement GPJ-003/96 between Airframe Manufacturer and
              Express
              (including all exhibits thereto, together with all letter agreements
              entered
              into that by their terms constitute part of such Purchase Agreement),
              to the
              extent assigned pursuant to the Purchase Agreement Assignment.

             

            
               

              
                
                  
                    
                    

                  

                  
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            “Purchase
              Agreement Assignment”
means
              the [Amended and Restated]17
              Purchase
              Agreement Assignment [TN], dated as of even date with the Participation
              Agreement, among Seller [, Express]18
              and
              Owner Trustee.

             

            “Purchase
              Date”
means
              the last Business Day of the Base Lease Term or any Renewal Lease Term,
              as
              specified in any Purchase Notice.

             

            “Purchase
              Notice”
is
              defined in Section 17.3.1 of the Lease.

             

            “QIB”
is
              defined in Section 2.08 of the Trust Indenture.

             

            “Removable
              Parts”
is
              defined in Section D of Annex C to the Lease.

             

            “Renewal
              Lease Term”
means
              each two year term for which the Lease is extended by Lessee, if any,
              pursuant
              to the first or second such extensions in accordance with Section 17
              of the
              Lease.

             

            “Renewal
              Notice”
is
              defined in Section 17.2.1 of the Lease.

             

            “Renewal
              Rent”
for
              the
              Aircraft means the rent payable therefor in respect of a Renewal Lease
              Term
              determined pursuant to Section 17.2.2 of the Lease.

             

            “Rent”
means,
              collectively, Basic Rent, Renewal Rent and Supplemental Rent.

             

            “Replacement
              Airframe”
means
              any airframe substituted for the Airframe pursuant to Section 10 of
              the
              Lease.

             

            “Replacement
              Engine”
means
              an engine substituted for an Engine pursuant to the Lease.

             

            “Return
              Acceptance Supplement”
means
              a
              Return Acceptance Supplement, dated as of the date the Aircraft is
              returned to
              Lessor pursuant to Section 5 of the Lease, by Lessor and Lessee substantially
              in
              the form of Exhibit B to
              the
              Lease.

             

            “Scheduled
              Closing Date”
means
              the expected Closing Date notified to Lessee, each Participant, Owner
              Trustee
              and Mortgagee by Airframe Manufacturer pursuant to Section 4.1 of the
              Participation Agreement, which expected Closing Date shall be a Business
              Day not
              later than the Commitment Termination Date.

             

            “Scheduled
              Expiration Date”
is
              defined in Schedule 1 to the Lease.

             

            ________________________

            17. Delete
              for New Aircraft.

             

            18. Delete
              for New Aircraft.

             

            
               

              
                
                  
                    
                    

                  

                  
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            “Scheduled
              Renewal Term Expiration Date”
means,
              in the case of the first Renewal Lease Term, the second anniversary
              of the
              Scheduled Expiration Date, and in the case of the second Renewal Lease
              Term, the
              fourth anniversary of the Scheduled Expiration Date.

             

            “SEC”
means
              the Securities and Exchange Commission of the United States, or any
              Government
              Entity succeeding to the functions of such Securities and Exchange
              Commission.

             

            “Section 1110”
means
              11 U.S.C. § 1110 of the Bankruptcy Code or any successor or analogous
              section of the federal bankruptcy Law in effect from time to time.

             

            “Section
              1110 Event”
means
              the institution of reorganization proceedings with respect to Lessee
              under
              Chapter 11 of the Bankruptcy Code and thereafter so long as the Section
              1110
              Period continues.

             

            “Section
              1110 Period”
means
              the continuous period of 60 days specified in Section 1110(a)(2)(A)
              of the
              Bankruptcy Code (or such longer period, if any, agreed to under Section
              1110(b)
              of the Bankruptcy Code), plus an additional period, if any, commencing
              with the
              trustee or debtor-in-possession in such proceeding agreeing to perform
              its
              obligations under the Lease with the approval of the applicable court
              and
              continuing until such time as such trustee or debtor-in-possession
              ceases to
              fully perform its obligations thereunder with the result that the period
              during
              which the Owner Trustee is prohibited from repossessing the Aircraft
              under the
              Lease comes to an end.

             

            “Secured
              Obligations”
is
              defined in Section 2.06 of the Trust Indenture.

             

            “Securities
              Act”
means
              the Securities Act of 1933, as amended.

             

            “Security”
means
              a
“security” as defined in Section 2(1) of the Securities Act.

             

            “Seller”
is
              defined in Schedule 3 to the Participation Agreement.

             

            “Similar
              Aircraft”
is
              defined in Schedule 1 to the Lease.

             

            “SLV
              Rate”
is
              defined in Schedule 1 to the Lease.

             

            “Stipulated
              Loss Value”
means,
              with respect to the Aircraft, (a) during the Base Lease Term, the amount
              determined by multiplying (i) the percentage set forth in Schedule 3
              to the Lease (as adjusted from time to time in accordance with
              Section 3.2.3 of the Lease) opposite the Stipulated Loss Value Date by
              (ii) Lessor’s Cost, (b) during any Renewal Lease Term, the amount
              determined pursuant to Section 17.2.3 of the Lease and (c) during any
              extension of the Term pursuant to the proviso to the definition of
“Term”, the
              Stipulated Loss Value immediately prior to the commencement of such
              extension.
              Notwithstanding anything to the contrary in any Operative Agreement,
              Stipulated
              Loss Value shall always be sufficient to pay in full, as of the date
              of payment
              thereof (assuming timely payment of the Equipment Notes prior to such
              date), the
              aggregate unpaid principal amount of all Equipment Notes outstanding
              as of such
              date, together with accrued and unpaid interest on all such Equipment
              Notes as
              of such date.

             

            
               

              
                
                  
                    
                    

                  

                  
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            “Stipulated
              Loss Value Date”
means,
              for any month, the day in such month specified in Schedule 3 to the
              Lease or, if
              such day is not a Business Day, the immediately succeeding Business
              Day.

             

            “Subordination
              Agent”
means
              Wilmington Trust Company, as subordination agent under the Intercreditor
              Agreement.

             

            “Subordination
              Agent Agreements”
means
              the Participation Agreement, the Liquidity Facility and the Intercreditor
              Agreement.

             

            “Supplemental
              Rent”
means,
              without duplication (a) all amounts, liabilities, indemnities and obligations
              (other than Basic Rent or Renewal Rent but including Make-Whole Amount,
              if any)
              that Lessee assumes or becomes obligated to or agrees to pay under
              any Lessee
              Operative Agreement to or on behalf of Lessor or any other person,
              including,
              without limitation, payments of Stipulated Loss Value, Termination
              Value and
              payments of indemnities under Section 9 of the Participation Agreement,
              but
              excluding any amount as to which Lessee is obligated to pay a pro rata
              share
              pursuant to clause (e) of this definition, (b) (i) to the extent
              not payable (whether or not in fact paid) under Section 6(a) of the
              Note
              Purchase Agreement (as originally in effect or amended with the consent
              of the
              Owner Participant), an amount or amounts equal to the fees payable
              to the
              Liquidity Provider under Section 2.03 of the Liquidity Facility and
              the related
              Fee Letter (as defined in the Intercreditor Agreement) multiplied by
              a fraction
              the numerator of which shall be the then outstanding aggregate principal
              amount
              of the Equipment Notes and the denominator of which shall be the then
              outstanding aggregate principal amount of all “Equipment Notes” (as defined in
              the Intercreditor Agreement); (ii) (x) the amount equal to interest on any
              Downgrade Advance (other than any Applied Downgrade Advance) payable
              under
              Section 3.07 of the Liquidity Facility minus Investment Earnings from
              such
              Downgrade Advance multiplied by (y) the fraction specified in the foregoing
              clause (i); (iii) (x) the amount equal to interest on any Special Termination
              Advance (other than any Applied Special Termination Advance) payable
              under
              Section 3.07 of the Liquidity Facility minus Investment Earnings from
              such
              Special Termination Advance multiplied by (y) the fraction specified in the
              forgoing clause (i); (iv) (x) the amount equal to interest on any Early
              Termination Advance (other than any Applied Early Termination Advance)
              payable
              under Section 3.07 of the Liquidity Facility minus Investment Earnings
              from such
              Early Termination Advance multiplied by (y) the fraction specified
              in the
              foregoing clause (i); (v) if any payment default shall have occurred
              and be
              continuing with respect to interest on any Equipment Notes, (x) the excess,
              if any, of (1) an amount equal to interest on any Unpaid Advance, Applied
              Downgrade Advance, Applied Special Termination Advance or Applied Early
              Termination Advance payable under Section 3.07 of the Liquidity Facility
              over
              (2) the sum of Investment Earnings from any Final Advance plus any amount
              of interest at the Payment Due Rate actually payable (whether or not
              in fact
              paid) by Owner Trustee on the overdue scheduled interest on the Equipment
              Notes
              in respect of which such Unpaid Advance, Applied Downgrade Advance,
              Applied
              Special Termination Advance or Applied Early Termination Advance was
              made
              multiplied by (y) a fraction the numerator of which shall be the then
              aggregate
              overdue amounts of interest on the Equipment Notes (other than interest
              becoming
              due and payable solely as a result of acceleration of any such Equipment
              Notes)
              and the denominator of which shall be the then aggregate overdue amounts
              of
              interest on all “Equipment Notes” (as defined in the Intercreditor Agreement)
              (other than interest becoming due and payable solely as a result of
              acceleration
              of any such “Equipment Notes”); and 

             

            
               

              
                
                  
                    
                    

                  

                  
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            (vi) Lessee’s
              pro rata share of any other amounts owed to the Liquidity Provider
              by the
              Subordination Agent as borrower under the Liquidity Facility (other
              than amounts
              due as repayment of advances thereunder or as interest on such advances,
              except
              to the extent payable pursuant to clause (i), (ii), (iii), (iv) or
              (v) above),
              in each case, to the extent not paid when due by the Airframe Manufacturer
              pursuant to the Fee Letter (as defined in the Intercreditor Agreement),
              (c) Lessee’s pro rata share of all compensation and reimbursement of
              expenses, disbursements and advances payable by Lessee under the Pass
              Through
              Trust Agreement, (d) Lessee’s pro rata share of all compensation and
              reimbursement of expenses and disbursements payable to the Subordination
              Agent
              under the Intercreditor Agreement except with respect to any income
              or franchise
              taxes incurred by the Subordination Agent in connection with the transactions
              contemplated by the Intercreditor Agreement, (e) Lessee’s pro rata share of
              any amount payable under Section 9.1 (and, if attributable thereto,
              Section 9.5) of the Participation Agreement to any Pass Through Indemnitee
              to the extent such amount relates to, results from or arises out of
              or in
              connection with (i) the Pass Through Agreements or the enforcement of any
              of the terms of any of the Pass Through Agreements, (ii) the offer, sale or
              delivery of the Pass Through Certificates or any interest therein or
              represented
              thereby or (iii) any breach of or failure to perform or observe, or any
              other noncompliance with, any covenant or agreement or other obligation
              to be
              performed by Lessee under any Pass Through Agreement or the falsity
              of any
              representation or warranty of Lessee in any Pass Through Agreement
              and
              (f) in the event Lessee requests any amendment to any Operative Agreement
              or Pass Through Agreement, Lessee’s pro rata share of all reasonable fees and
              expenses (including, without limitation, fees and disbursements of
              counsel) of
              the Escrow Agents and the Paying Agents in connection therewith payable
              by the
              Pass Through Trustee under the Escrow Agreement. As used herein, “Lessee’s pro
              rata share” means as of any time a fraction, the numerator of which is the
              principal balance then outstanding of Equipment Notes and the denominator
              of
              which is the aggregate principal balance then outstanding of all “Equipment
              Notes” (as such term is defined in each of the Operative Indentures). For
              purposes of this definition, (i) the terms “Applied Downgrade Advance”, “Applied
              Early Termination Advance”, “Applied Special Termination Advance”, “Downgrade
              Advance”, “Early Termination Advance”, “Final Advance”, “Investment Earnings”,
“Special Termination Advance” and “Unpaid Advance” shall have the meanings
              specified in the Liquidity Facility.

             

            “Tax
              Attribute Period”
is
              defined in Section 1(e) of the Tax Indemnity Agreement.

             

            “Tax
              Indemnitee”
means
              (a) Wells Fargo and Owner Trustee, (b) WTC and Mortgagee,
              (c) each separate or additional trustee appointed pursuant to the Trust
              Agreement or the Trust Indenture, (d) each Participant, (e) the Trust
              Estate and the Trust Indenture Estate and (f) the respective successors,
              assigns, agents and servants of the foregoing. For purposes of this
              definition,
              the term “Owner Participant” shall include any member of an affiliated group
              (within the meaning of Section 1504 of the Code) of which Owner Participant
              is, or may become, a member if consolidated, joint or combined returns
              are filed
              for such affiliated group for federal, state or local income tax purposes.
              

             

            “Tax
              Indemnity Agreement”
means
              the Tax Indemnity Agreement [TN], dated as of even date with the Participation
              Agreement, between Lessee and Owner Participant.

             

            
               

              
                
                  
                    
                    

                  

                  
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            “Taxes”
means
              all license, recording, documentary, registration and other similar
              fees and all
              taxes, levies, imposts, duties, charges, assessments or withholdings
              of any
              nature whatsoever imposed by any Taxing Authority, together with any
              penalties,
              additions to tax, fines or interest thereon or additions thereto.

             

            “Taxing
              Authority”
means
              any federal, state or local government or other taxing authority in
              the United
              States, any foreign government or any political subdivision or taxing
              authority
              thereof, any international taxing authority or any territory or possession
              of
              the United States or any taxing authority thereof.

             

            “Term”
means
              the term, commencing on the Closing Date, for which the Aircraft is
              leased
              pursuant to Section 3 of the Lease, and shall include the Base Lease Term
              and, if applicable, any Renewal Lease Term; provided
              that if
              at the scheduled end of the Term the Aircraft or Airframe is being
              used, or was
              within six (6) months prior thereto being used, by the U.S. Government
              pursuant
              to CRAF, the Term shall be deemed extended for the period necessary
              to
              accommodate usage of the Aircraft or Airframe pursuant to CRAF plus
              six months
              thereafter, and Lessee shall be obligated to pay Basic Rent with respect
              to any
              such period of extension at a rate equal to the Basic Rent paid during
              the Base
              Lease Term or the applicable Renewal Lease Term, whichever shall have
              ended
              immediately prior to such extension.

             

            [“Termination
              Agreements”
means,
              collectively, the termination agreement with respect to the Existing
              Lease and
              the termination agreement with respect to the Existing Sublease, in
              each case
              delivered pursuant to Section 5.1.2(xiv) of the Participation
              Agreement.]19

             

            “Termination
              Date”
means
              any Payment Date on which the Lease shall terminate in accordance with
              Section 9 of the Lease.

             

            “Termination
              Value”
means,
              with respect to the Aircraft, the amount determined by multiplying
              (a) the
              percentage set forth in Schedule 4 to the Lease (as adjusted from time to
              time in accordance with Section 3.2.3 of the Lease) opposite the applicable
              Payment Date by (b) Lessor’s Cost. Notwithstanding anything to the contrary
              in any Operative Agreement, Termination Value shall always be sufficient
              to pay
              in full, as of the date of payment thereof (assuming timely payment
              of the
              Equipment Notes prior to such date), the aggregate unpaid principal
              amount of
              all Equipment Notes outstanding as of such date, together with accrued
              and
              unpaid interest on all such Equipment Notes as of such date.

             

            “Threshold
              Amount”
is
              defined in Schedule 1 to the Lease.

             

            “Transactions”
means
              the transactions contemplated by the Participation Agreement and the
              other
              Operative Agreements to occur on the Closing Date.

             

            ________________________

            19. Delete
              for New Aircraft.

             

             

            
               

              
                
                  
                    
                    

                  

                  
                    PAGE
                      24

                    
                      

                    

                  

                  
                    Table
                      of Contents

                  

                

                 

              

            

            “Transaction
              Expenses”  means
              (a) all costs and expenses incurred by Owner Participant, the Pass Through
              Trustee, the Subordination Agent, Owner Trustee and Mortgagee in connection
              with
              the preparation, execution and delivery of the Operative Agreements
              (including,
              without limitation, the reasonable fees and expenses of counsel for
              such
              parties), (b) all costs and expenses for the recording or filing of any
              documents, certificates or instruments in accordance with any Operative
              Agreement, including, without limitation, the FAA Filed Documents and
              the
              Financing Statements, (c) the OP Pro Rata Share of (i) the placement
              fees and expenses attributable to the offering and sale of the Pass
              Through
              Certificates and (ii) all costs and expenses incurred by the Pass Through
              Trustee, the Subordination Agent, Owner Trustee and Mortgagee in connection
              with
              the preparation, execution and delivery of the Pass Through Agreements
              (including, without limitation, the reasonable fees and expenses of
              counsel for
              such parties), (d) the reasonable fees and disbursements of special
              counsel in
              Oklahoma City, Oklahoma, in connection with the Closing, and (e) all
              initial and ongoing fees, disbursements and expenses of Owner Trustee
              and
              Mortgagee. For purposes of the foregoing, “OP
              Pro
              Rata Share”
shall
              mean a fraction, the numerator of which shall be one and the denominator
              of
              which shall be the number of aircraft financed under the Note Purchase
              Agreement.

             

            “Transfer”
means
              the transfer, sale, assignment or other conveyance of all or any interest
              in any
              property, right or interest.

             

            “Transferee”
means
              a
              person to which any Owner Participant, Owner Trustee or any Loan Participant
              or
              Note Holder purports or intends to Transfer any or all of its right,
              title or
              interest in the Trust Estate or in its Equipment Note and the Trust
              Indenture
              Estate, respectively, as described in Section 10.1.1(a), 10.1.2 or 10.1.3
              (but excluding participants in any participation referred to in Section
              10.1.3),
              respectively, of the Participation Agreement.

             

            “Trust”
means
              the trust created by the Trust Agreement.

             

            “Trust
              Agreement”
means
              the [Amended and Restated]20
              Trust
              Agreement [TN], dated as of even date with the Participation Agreement,
              between
              Owner Participant and Owner Trustee.

             

            “Trust
              Estate”
means
              all estate, right, title and interest of Owner Trustee in and to the
              Aircraft,
              the Lease, any Lease Supplement and the Purchase Agreement including,
              without
              limitation, all amounts of Basic Rent and Supplemental Rent including,
              without
              limitation, insurance proceeds (other than insurance proceeds payable
              to or for
              the benefit of Owner Participant, Note Holders or WTC) and requisition,
              indemnity or other payments of any kind for or with respect to the
              Aircraft
              (except amounts owing to Owner Participant, Note Holders or WTC, or
              to any of
              their respective directors, officers, employees, servants and agents,
              pursuant
              to Section 9 of the Participation Agreement). Notwithstanding the
              foregoing, “Trust Estate” shall not include any Excluded Payment.

             

            ________________________

            20. Delete
              for New Aircraft.

             

             

            
               

              
                
                  
                    
                    

                  

                  
                    PAGE
                      25

                    
                      

                    

                  

                  
                    Table
                      of Contents

                  

                

                 

              

            

            “Trust
              Indenture”
means
              the Trust Indenture and Mortgage [TN], dated as of even date with the
              Participation Agreement, between Owner Trustee and Mortgagee.

             

            “Trust
              Indenture Estate”
is
              defined in the “Granting Clause” of the Trust Indenture.

             

            “Trust
              Indenture Supplement”
means
              a
              Trust Indenture and Mortgage [TN] Supplement, substantially in the
              form of
              Exhibit A to the Trust Indenture, with appropriate modifications to reflect
              the purpose for which it is being used.

             

            “Trust
              Supplement”
means
              an agreement supplemental to the Basic Pass Through Trust Agreement
              pursuant to
              which (i) a separate trust is created for the benefit of the holders
              of the Pass
              Through Certificates, (ii) the issuance of the Pass Through Certificates
              representing fractional undivided interests in such trust is authorized
              and
              (iii) the terms of the Pass Through Certificates are established.

             

            “UCC”
means
              the Uniform Commercial Code as in effect in any applicable
              jurisdiction.

             

            “United
              States”
or
              “U.S.”
means
              the United States of America; provided,
              that
              for geographic purposes, “United States” means, in aggregate, the 50 states and
              the District of Columbia of the United States of America.

             

            “U.S.
              Air Carrier”
means
              any Person holding an air carrier operating certificate issued by the
              Secretary
              of Transportation pursuant to chapter 447 of title 49 of the United
              States Code
              for aircraft capable of carrying 10 or more individuals or 6000 pounds
              or more
              of cargo, and as to which there is in force an air carrier operating
              certificate
              issued pursuant to Part 121 of the FAA Regulations, or which may operate
              as an
              air carrier by certification or otherwise under any successor or substitute
              provisions therefor or in the absence thereof.

             

            “U.S.
              Person”
means
              any Person described in Section 7701(a)(30) of the Code.

             

            “U.S.
              Government”
means
              the federal government of the United States, or any instrumentality
              or agency
              thereof the obligations of which are guaranteed by the full faith and
              credit of
              the federal government of the United States.

             

            “Weighted
              Average Life to Maturity”
means,
              with respect to any specified Debt, at the time of the determination
              thereof the
              number of years obtained by dividing the then Remaining Dollar-years
              of such
              Debt by the then outstanding principal amount of such Debt. The term
“Remaining
              Dollar-years” shall mean the amount obtained by (1) multiplying the amount of
              each then-remaining principal payment on such Debt by the number of
              years
              (calculated at the nearest one-twelfth) that will elapse between the
              date of
              determination of the Weighted Average Life to Maturity of such Debt
              and the date
              of that required payment and (2) totaling all the products obtained
              in clause
              (1) above.

             

            “Wells
              Fargo”
means
              Wells Fargo Bank Northwest, National Association, a national banking
              association, not in its capacity as Owner Trustee under the Trust Agreement,
              but
              in its individual capacity.

             

            
               

              
                
                  
                    
                    

                  

                  
                    PAGE
                      26

                    
                      

                    

                  

                  
                    Table
                      of Contents

                  

                

              

            

             

            “Wet
              Lease”
means
              any arrangement whereby Lessee or a Permitted Sublessee agrees to furnish
              the
              Aircraft, Airframe or any Engine to a third party pursuant to which
              the
              Aircraft, Airframe or Engine shall at all times be in the operational
              control of
              Lessee or a Permitted Sublessee, provided that Lessee’s obligations under this
              Lease shall continue in full force and effect notwithstanding any such
              arrangement.

             

            “WTC”
means
              Wilmington Trust Company, a Delaware banking corporation, not in its
              capacity as
              Mortgagee under the Trust Indenture, but in its individual
              capacity.

            

             

            
               

              
                
                  
                    
                    

                  

                  
                    PAGE
                      27

                    
                      

                    

                  

                  
                    Table
                      of Contents

                  

                

                 

              

            

            
              	
                      SCHEDULE
                        1

                      TO

                      Participation
                        Agreement [TN]

                    

            

          

        

        ACCOUNTS;
          ADDRESSES

         

        
          
            
              	 	
                      Account
                        for Payments

                    	
                      Address
                        for Notices

                    
	
                       

                      Continental
                        Airlines, Inc.

                       

                    	
                       

                      JPMorgan
                        Chase

                      New
                        York, New York 10081

                      Account
                        No.: 910-2-499291

                      ABA#:
                        021-000021

                      Attention:
                        Darlene Cafferata

                      Voice:
                        312-807-4084

                      Facsimile:
                        312-807-4501

                      Reference:
                        Continental

                       
                        Lease [TN]

                    	
                       

                      Continental
                        Airlines, Inc.

                      1600
                        Smith Street

                      Dept.
                        HQS-FN

                      Houston,
                        Texas 77002

                      Attention: Treasurer

                      Facsimile:
                        (713) 324-2447 

                       

                    
	
                       

                      Owner
                        Participant

                       

                    	
                       

                      [Banco
                        do Brasil S.A.

                      New
                        York Branch

                      ABA#
                        026003557

                      Account
                        No.: 75592-011

                      Reference:
                        Continental Lease [TN]]

                    	
                       

                      [Refine,
                        Inc.

                      c/o
                        CT Corporation

                      1209
                        Orange St.

                      Wilmington,
                        DE 19801

                      Facsimile:
                        202-298-7570]

                    
	
                       

                      Wells
                        Fargo Bank Northwest, National Association

                       

                    	
                       

                      Wells
                        Fargo Bank Northwest,

                      National
                        Association

                      ABA:
                        121000248

                      Cr:
                        Corporate Trust Services

                      A/C:
                        051-09221-15

                      Ref:
                        Continental Lease [TN]

                    	
                       

                      Wells
                        Fargo Bank Northwest,

                      National
                        Association

                      MAC:
                        U1228-120

                      299
                        South Main Street, 12th Floor

                      Salt
                        Lake City, Utah 84111

                      Attention:
                        Corporate Trust Services

                      Facsimi le:
                        (801)
                        246-5053

                    
	
                       

                      Wilmington
                        Trust Company, as Mortgagee

                    	
                       

                      Wilmington
                        Trust Company

                      
                        Wilmington,
                          Delaware 19890

                        Account
                          No.: [AC]

                        ABA
                          #: 031-100092

                        Attention:
                          Corporate Capital Market

                         
                          Services/Monica M. Henry

                        Reference:
                          Continental

                         
                          Lease [TN]

                      

                    	
                       

                      Wilmington
                        Trust Company

                      
                        Rodney
                          Square North

                        1100
                          North Market Street

                        Wilmington,
                          Delaware 19890

                        Attention:
                          Corporate Trust

                          
                          Administration

                        Facsimile:
                          (302) 636-4141

                      

                    
	
                       

                      Wilmington
                        Trust Company, as Subordination Agent

                    	
                       

                      
                        Wilmington
                          Trust Company

                        Wilmington,
                          Delaware 19890

                        Account
                          No.: 64060-0

                        ABA
                          #: 031-100092

                        Attention:
                          Corporate Capital Market 

                          
                          Services/Monica M. Henry

                        Reference:
                          Continental

                          
                          Lease [TN]

                      

                    	
                       

                      
                        Wilmington
                          Trust Company

                        Rodney
                          Square North

                        1100
                          North Market Street

                        Wilmington,
                          Delaware 19890

                        Attention:
                          Corporate Trust

                          
                          Administration

                        Facsimile:
                          (302) 636-4141

                      

                    

            

            
              
                PAGE
                  1

                
                  

                

              

              
                Table
                  of Contents

              

            

             

             

            
              	
                       

                      Wilmington
                        Trust

                      Company,
                        as Pass

                      Through
                        Trustee

                      for
                        the 2005-ERJ1

                      Pass
                        Through

                      Trust

                       

                    	
                       

                      Wilmington
                        Trust Company

                      Wilmington,
                        Delaware 19890

                      Account
                        No.: 64021-0

                      ABA
                        #: 031-100092

                      Attention:
                        Corporate Capital Market

                        
                        Services/Monica M. Henry

                      Reference:
                        Continental

                        
                        Lease [TN]

                    	
                       

                      Wilmington
                        Trust Company

                      Rodney
                        Square North

                      1100
                        North Market Street

                      Wilmington,
                        Delaware 19890

                      Attention:
                        Corporate Trust

                       
                        Administration

                      Facsimile:
                        (302) 636-4141

                       

                    
	
                       

                      EMBRAER-

                      Empresa
                        Brasileira

                      de
                        Aeroná;utica S.A.

                       

                    	
                       

                      Banco
                        do Brasil S.A.

                      Av.
                        Nelson D’Avila, 149

                      12245-030,
                        São José dos

                      Campos-SP

                      Brazil

                      Swift
                        Code: BRASBRRJSJC

                      Account
                        No.: 9405-6

                      Reference:
                        COEX Lease [TN]

                       

                    	
                       

                      EMBRAER-Empresa
                        Brasileira de Aeronáutica S.A.

                      Av.
                        Brigadeiro Faria Lima, 2170

                      12227-901
                        São José dos Campos-SP

                      Brazil

                      Attention:
                        General Counsel

                      Facsimile:
                        (55-123) 927-1257

                       

                    

            

          

        

         

         

        
          
            
            

          

          
            PAGE
              2

            
              

            

          

          
            Table
              of Contents

          

        

      

    

    
      
        
          

            
              	
                      SCHEDULE
                        2

                      TO

                      Participation
                        Agreement [TN]

                    

            

          

        

         
COMMITMENTS

       

    

    

      
        	
                 

                Participant

              	
                Percentage
                  of Lessor’s

                Cost

              	
                 

                Dollar
                  Amount

              
	
                 

                 

                Pass
                  Through Trustee

              	
                 

                Loan
                  Participant’s

                PTT
                  Percentage

              	 
	
                 

                2005-ERJ1

              	
                 

                [PTT]%

              	
                 

                $[DA]

              
	
                 

                Owner
                  Participant

              	
                 

                Owner
                  Participant’s Percentage

              	 
	 	
                 

                [OPP]%

              	
                 

                $[OPDA]

              
	
                 

                Total

              	 	
                 

                $[TDA]

              

      

    

     

     

     

    
      
        
        

      

      
        PAGE
          1

        
          

        

      

      
        Table
          of Contents

      

    

    
      
        

          
            	
                    SCHEDULE
                      3

                    TO

                    Participation
                      Agreement [TN]

                  

          

        

      

       
CERTAIN
      TERMS

    
       

      

        

          
            	
                     

                    Defined
                      Term

                  	
                     

                    Definition

                  
	
                     

                                Commitment
                      Termination Date

                  	
                     

                    [__________,
                      200_]

                  
	
                     

                                [Existing
                      Lease

                  	
                     

                    Lease
                      Agreement-[TN], dated as of

                    [ELD],
                      between Lessor and Lessee]28

                  
	
                     

                                [Existing
                      Participation Agreement

                  	
                     

                    Participation
                      Agreement-[TN], dated

                    as
                      of [EPD], among Lessee, Refine,

                    Inc.,
                      Owner Trustee, Express and

                    Airframe
                      Manufacturer]29

                  
	
                     

                                Equity
                      Advisor

                  	
                     

                    [________]

                  
	
                     

                                Expense
                      Limit

                  	
                     

                    $[___]

                  
	
                     

                                Lessor’s
                      Cost

                  	
                     

                    $[LC]

                  
	
                     

                                OP
                      Jurisdiction

                  	
                     

                    [Delaware]

                  
	
                     

                                Seller

                  	
                     

                    PM
                      Limited, a Cayman Islands

                    company

                  
	
                     

                                Special
                      Counsel to the Owner Participant 

                  	
                     

                    [________]

                  

          

          

            
              
                
                  

                

              

              28. 
                Delete for New Aircraft.

               

              29. 
                Delete for New Aircraft.

               

               

              
                
                  
                  

                

                
                  PAGE
                    1

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