Document:

EX-10.2

 Exhibit 10.2 
 AIRCRAFT MORTGAGE AND SECURITY AGREEMENT 
 Dated as of August 9, 2012

 among 

FLY FUNDING II S.À R.L., 
 FLY LEASING LIMITED, 
 FLY PERIDOT HOLDINGS LIMITED, 

BABCOCK & BROWN AIR ACQUISITION I LIMITED 
 THE INITIAL INTERMEDIATE LESSEES, 
 THE INITIAL LESSOR SUBSIDIARIES 

and 
 THE
ADDITIONAL GRANTORS REFERRED TO HEREIN 
 as the Grantors 
 and 
 WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION, 

as the Collateral Agent 

 T A B L E    O F    C O N T E N T S 

 

							
	 	 	 	  	PAGE	 
	 ARTICLE I DEFINITIONS
	  	 	2	  
	 Section 1.01
	 	Definitions	  	 	2	  
	 Section 1.02
	 	Construction and Usage	  	 	8	  
		
	 ARTICLE II SECURITY
	  	 	10	  
	 Section 2.01
	 	Grant of Security	  	 	10	  
	 Section 2.02
	 	Security for Obligations	  	 	13	  
	 Section 2.03
	 	Representations and Warranties of the Grantors	  	 	13	  
	 Section 2.04
	 	Grantors Remain Liable	  	 	15	  
	 Section 2.05
	 	Delivery of Collateral	  	 	16	  
	 Section 2.06
	 	As to the Assigned Documents	  	 	16	  
	 Section 2.07
	 	As to Beneficial Interest Collateral	  	 	18	  
	 Section 2.08
	 	Further Assurances	  	 	19	  
	 Section 2.09
	 	Place of Perfection; Records	  	 	21	  
	 Section 2.10
	 	Voting Rights; Dividends; Etc	  	 	22	  
	 Section 2.11
	 	Transfers and Other Liens; Additional Shares or Interests	  	 	22	  
	 Section 2.12
	 	Collateral Agent Appointed Attorney-in-Fact	  	 	23	  
	 Section 2.13
	 	Collateral Agent May Perform	  	 	23	  
	 Section 2.14
	 	Covenant to Pay	  	 	24	  
	 Section 2.15
	 	Delivery of Collateral Supplements	  	 	24	  
	 Section 2.16
	 	Operational Covenants	  	 	24	  
	 Section 2.17
	 	Insurance	  	 	26	  
	 Section 2.18
	 	As to Irish Law	  	 	27	  
	 Section 2.19
	 	Irish Charge Over Shares	  	 	28	  
	 Section 2.20
	 	Bermuda Share Charge	  	 	28	  
	 Section 2.21
	 	Australian Share Charge	  	 	28	  
	 Section 2.22
	 	Investment of Security Funds	  	 	28	  
	 Section 2.23
	 	Covenant Regarding Control	  	 	29	  
	 Section 2.24
	 	Security Documents	  	 	29	  
		
	 ARTICLE III REMEDIES
	  	 	29	  
	 Section 3.01
	 	Remedies	  	 	29	  
	 Section 3.02
	 	Priority of Payments	  	 	30	  
		
	 ARTICLE IV SECURITY INTEREST ABSOLUTE
	  	 	30	  
	 Section 4.01
	 	Security Interest Absolute	  	 	30	  
		
	 ARTICLE V THE COLLATERAL AGENT
	  	 	31	  
	 Section 5.01
	 	Authorization and Action	  	 	31	  
	 Section 5.02
	 	Absence of Duties	  	 	32	  
	 Section 5.03
	 	Representations or Warranties	  	 	32	  

  
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	 Section 5.04
	 	Reliance; Agents; Advice of Counsel	  	 	32	  
	 Section 5.05
	 	Cape Town Convention	  	 	34	  
	 Section 5.06
	 	No Individual Liability	  	 	34	  
		
	 ARTICLE VI SUCCESSOR COLLATERAL AGENT
	  	 	34	  
	 Section 6.01
	 	Resignation and Removal of the Collateral Agent	  	 	34	  
	 Section 6.02
	 	Appointment of Successor	  	 	34	  
		
	 ARTICLE VII INDEMNITY AND EXPENSES
	  	 	35	  
	 Section 7.01
	 	Indemnity	  	 	35	  
	 Section 7.02
	 	Secured Parties’ Indemnity	  	 	36	  
	 Section 7.03
	 	No Compensation from Secured Parties	  	 	37	  
	 Section 7.04
	 	Collateral Agent Fees	  	 	37	  
		
	 ARTICLE VIII MISCELLANEOUS
	  	 	37	  
	 Section 8.01
	 	Amendments; Waivers; Etc	  	 	37	  
	 Section 8.02
	 	Addresses for Notices	  	 	38	  
	 Section 8.03
	 	No Waiver; Remedies	  	 	40	  
	 Section 8.04
	 	Severability	  	 	40	  
	 Section 8.05
	 	Continuing Security Interest; Assignments	  	 	40	  
	 Section 8.06
	 	Release and Termination	  	 	40	  
	 Section 8.07
	 	Currency Conversion	  	 	41	  
	 Section 8.08
	 	Governing Law	  	 	41	  
	 Section 8.09
	 	Jurisdiction; Consent to Service of Process	  	 	42	  
	 Section 8.10
	 	Counterparts	  	 	42	  
	 Section 8.11
	 	Table of Contents, Headings, Etc	  	 	42	  
	 Section 8.12
	 	Non-Invasive Provisions	  	 	42	  
	 Section 8.13
	 	Limited Recourse	  	 	44	  

 SCHEDULES 
  

			
	Schedule I	  	Aircraft, Airframes and Engines
	Schedule II	  	Pledged Stock, Pledged Beneficial Interest and Pledged Membership Interests
	Schedule III	  	Trade Names
	Schedule IV	  	Chief Place of Business and Chief Executive or Registered Office
	Schedule V	  	Insurance

 EXHIBITS 
  

			
	Exhibit A-1	  	Form of Collateral Supplement
	Exhibit A-2	  	Form of Grantor Supplement
	Exhibit B	  	Form of Consent and Agreement
	Exhibit C	  	Form of FAA Aircraft Mortgage
	Exhibit D	  	Form of FAA Aircraft Mortgage and Lease Security Assignment
	Exhibit E	  	Form of FAA Lease Security Assignment
	Exhibit F-1	  	Form of Notice of Assignment
	Exhibit F-2	  	Form of Lessee Acknowledgment

  
 ii 

			
	Exhibit G	  	Form of Irish Charge Over Shares
	Exhibit H	  	Form of Bermudan Share Charge
	Exhibit I	  	Form of Luxembourg Share Pledge
	Exhibit J	  	Form of Australian Share Charge
	Exhibit K	  	Form of Australian Aircraft Mortgage
	Exhibit L	  	Form of Cayman Islands Share Mortgage

  
 iii

 AIRCRAFT MORTGAGE AND SECURITY AGREEMENT 

This AIRCRAFT MORTGAGE AND SECURITY AGREEMENT (this “Agreement”), dated as of August 9, 2012, is made among (i) FLY FUNDING II
S.À R.L. a private limited liability company (société à responsibilité limitée) incorporated and existing under the laws of Luxembourg, having its registered office at 46A, Avenue J.F. Kennedy, L-1855
Luxembourg, registered with the Luxembourg register of commerce and companies under number R.C.S. Luxembourg: B 170.080 and having a share capital of $20,000 (the “Borrower”), (ii) FLY LEASING LIMITED, a company incorporated
under the laws of Bermuda (“FLL”), (iii) FLY PERIDOT HOLDINGS LIMITED, an exempted company incorporated with limited liability under the laws of the Cayman Islands (“FPH”), (iv) BABCOCK & BROWN
AIR ACQUISITION I LIMITED (“BBAA”), (v) B&B AIR ACQUISITION 34953 LEASING LIMITED, a private Irish limited liability company (“BBAA 34953”), (vi) B&B AIR ACQUISITION 3151 LEASING LIMITED, a private
Irish limited liability company (“BBAA 3151”), (vii) B&B AIR ACQUISITION 403 LEASING LIMITED, a private Irish limited liability company (“BBAA 403”), (viii) B&B AIR ACQUISITION 34956 LEASING
LIMITED, a private Irish limited liability company (“BBAA 34956”), (ix) B&B AIR ACQUISITION 3237 LEASING LIMITED, a private Irish limited liability company (“BBAA 3237”, and together with, BBAA 34953,
BBAA 3151, BBAA 403 and BBAA 34956, the “Initial Intermediate Lessees”), (x) the INITIAL LESSOR SUBSIDIARIES listed on the signature pages of this Agreement (collectively, the “Initial Lessor
Subsidiaries”), (xi) the ADDITIONAL GRANTORS who from time to time become grantors under this Agreement (together with the Borrower, FLL, FPH, BBAA, each of the Initial Intermediate Lessees and each of the Initial Lessor Subsidiaries,
the “Grantors”), and (xii) WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION, a national banking association (“Wells Fargo”), as the collateral agent (in such capacity, and together with any permitted successor
or assign thereto or any permitted replacement thereof, the “Collateral Agent”). 
 PRELIMINARY STATEMENTS:

 (1) The Borrower, Fly Leasing Limited (“FLL”), the Initial Intermediate Lessees, the Initial Lessor
Subsidiaries, the lenders from time to time party thereto (the “Lenders”), Citibank N.A., as the administrative agent (in such capacity, the “Administrative Agent”), Wells Fargo, as collateral agent and securities
intermediary, and Citigroup Global Markets Inc, as syndication agent, have entered into the Term Loan Credit Agreement, dated as of the date hereof (the “Credit Agreement”), pursuant to which the Lenders have made the Loans to the
Borrower; 
 (2) The Initial Lessor Subsidiaries hold title to certain Pool Aircraft and, together with the Initial Intermediate
Lessees in certain instances, are parties to lease and sub-lease contracts with respect to such Pool Aircraft; 
 (3) The
Grantors may from time to time grant additional security for the benefit of the Secured Parties, all in accordance with, and subject to the terms and conditions of this Agreement; 

  
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 (4) The Grantors have agreed pursuant to the Credit Agreement, and it is a condition
precedent to the making of the Loans by the Lenders to the Borrower under the Credit Agreement, that the Grantors grant the security interests required by this Agreement; 
 (6) Each Grantor will derive substantial direct and indirect benefit from the transactions described above; and 
 (7) Wells Fargo is willing to act as the Collateral Agent under this Agreement. 

NOW, THEREFORE, in consideration of the premises, each Grantor hereby agrees with the Collateral Agent for its respective benefit and the
benefit of the other Secured Parties as follows: 
 ARTICLE I 

DEFINITIONS 

Section 1.01 Definitions. (a) Certain Defined Terms. For the purposes of this Agreement, the following terms have the meanings
indicated below: 
 “2009 Act” has the meaning set forth in Section 2.18. 

“Account Collateral” has the meaning specified in Section 2.01(i). 

“Acquisition Agreement” means any agreement to provide warranties in connection with any agreement pursuant to which a Pool
Aircraft has been or will be acquired by a Lessor Subsidiary to the extent permitted to be assigned without third party consent. 
 “Additional Grantor” has the meaning specified in Section 8.01(b). 

“Agreed Currency” has the meaning specified in Section 8.07. 

“Agreement” has the meaning specified in the recital of parties to this Agreement. 

“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 pursuant to applicable law to be maintained with respect to the relevant Pool Aircraft, and such term shall include all additions, renewals, revisions and replacements of any
such materials from time to time made, or required to be made, pursuant to applicable law, 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 the relevant Lessee. 

  
 2 

 “Aircraft Objects” means, collectively, the Aircraft Objects (as defined in the
Protocol) described on Schedule I hereto and in any Collateral Supplement or Grantor Supplement. 
 “Aircraft Purchase
Collateral” has the meaning specified in Section 2.01(d). 
 “Airframe” means, individually, each of the
airframes described on Schedule I hereto and in any Collateral Supplement or Grantor Supplement. 
 “Assigned Agreement
Collateral” has the meaning specified in Section 2.01(c). 
 “Assigned Agreements” has the meaning specified
in Section 2.01(c)(i). 
 “Assigned Documents” means, collectively, the Assigned Agreements, the Assigned Leases
and the Acquisition Agreements included in the Aircraft Purchase Collateral. 
 “Assigned Leases” has the meaning
specified in Section 2.01(b). 
 “Beneficial Interest Collateral” has the meaning specified in
Section 2.01(e). 
 “Borrower” has the meaning specified in the preliminary statements of this Agreement.

 “Cape Town Lease” means any Lease (including any Lease between Grantors) that has been entered into, extended,
assigned or novated after March 1, 2006 (or such later date as the Cape Town Convention may be given effect under the law of any applicable jurisdiction) (A) with a Cape Town Lessee or (B) where the related Aircraft Object is
registered in a “Contracting State”. 
 “Cape Town Lessee” means a lessee under a Lease that is
“situated in” a “Contracting State”. 
 “Certificated Security” means a certificated security (as
defined in Section 8-102(a)(4) of the UCC) other than a Government Security. 
 “Chattel Paper Original” has the
meaning specified in Section 2.05. 
 “Collateral” has the meaning specified in Section 2.01. 

“Collateral Agent” has the meaning specified in the recital of parties to this Agreement. 

“Collateral Supplement” means a supplement to this Agreement in substantially the form attached as Exhibit A-1 executed and
delivered by a Grantor. 

  
 3 

 “Credit Agreement” has the meaning specified in the preliminary statements to this
Agreement. 
 “Eligible Institution” means (a) Wells Fargo in its capacity as the Collateral Agent under this
Agreement; (b) any bank not organized under the laws of the United States of America so long as it has either (i) a long-term unsecured debt rating of A or better by Standard & Poor’s and A2 or better by Moody’s or
(ii) a short-term unsecured debt rating of A-1+ by Standard & Poor’s and P-1 or better by Moody’s; or (c) any bank organized under the laws of the United States of America or any state thereof, or the District of
Columbia (or any branch of a foreign bank licensed under any such laws), so long as it (i) has either (A) a long-term unsecured debt rating of AA (or the equivalent) or better by each of Standard & Poor’s and Moody’s or
(B) a short-term unsecured debt rating of A-1+ by Standard & Poor’s and P-1 by Moody’s and (ii) can act as a securities intermediary under the New York Uniform Commercial Code. 

“Engine” means, individually, each of the aircraft engines described on Schedule I hereto or in any Collateral Supplement or
Grantor Supplement. 
 “Equity Collateral” has the meaning specified in Section 2.07(a). 

“Event of Default” means any Event of Default (as defined in the Credit Agreement). 

“Excluded Property” shall mean (a) proceeds of public liability insurance (or government or other Person (including the
Manufacturer, the Lessee and any sublessee of the Lessee) indemnities in lieu thereof) paid or payable as a result of insurance claims made, or losses suffered, by any Grantor or their Affiliates, (b) proceeds of insurance maintained by any
Grantor, the Servicers or their respective Affiliates for its or their own account or benefit (whether directly or through a Grantor) and not required by the Loan Documents, (c) the proceeds of any requisition for hire not required to be paid
to the Collateral Agent, (d) any general, Tax or other indemnity payments, expenses, reimbursements and similar payments and interest in respect thereof paid or payable in favor of any Grantor or their Affiliates or their respective successors
or assigns, officers, directors, employees, agents, managers and servants, including any such payments pursuant to any Lease, except to the extent such Grantor or Affiliate owes such amounts in respect of the same claim to a Secured Party,
(e) any security interest held by a Grantor or any of its Affiliates in any assets of a Lessee or any sublessee thereof or of any of their Affiliates, other than the Security Deposit under a Lease, or a letter of credit in lieu thereof, which
secures obligations owed by such Lessee, sublessee or Affiliate pursuant to a grant of collateral not under the applicable Lease, (f) any interest that pursuant to a Lease may from time to time accrue in respect of any of the amounts described
in clauses (a) through (d) above, (g) the proceeds from the enforcement of any right to enforce the payment of any amount described in clauses (a) to (f) above, and (h) 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 Property. 

  
 4 

 “FAA” means the Federal Aviation Administration of the United States of America.

 “FAA Aircraft Mortgage” means an FAA Aircraft Mortgage substantially in the form attached as Exhibit C. 

“FAA Aircraft Mortgage and Lease Security Assignment” means an FAA Aircraft Mortgage and Lease Security Assignment
substantially in the form attached as Exhibit D. 
 “FAA Lease Security Assignment” means the Lease Security
Assignment in substantially the form attached as Exhibit E hereto. 
 “Government Security” means any security issued
or guaranteed by the United States of America or an agency or instrumentality thereof that is maintained in book-entry on the records of the Federal Reserve Bank of New York and is subject to Revised Book-Entry Rules. 

“Grantor Supplement” means a supplement to this Agreement in substantially the form attached as Exhibit A-2 executed and
delivered by a Grantor. 
 “Grantors” has the meaning specified in the recital of parties to this Agreement.

 “Initial Intermediate Lessees” has the meaning specified in the recital of parties to this Agreement. 

“Initial Lessor Subsidiaries” has the meaning specified in the recital of parties to this Agreement. 

“Instrument” means any “instrument” as defined in Section 9-102(a)(47) of the UCC. 

“Insurances” means, in relation to each Pool Aircraft, any and all contracts or policies of insurance and reinsurance complying
with the provisions of Schedule V hereto or an indemnity from a Governmental Authority as indemnitor, as appropriate, and required to be effected and maintained in accordance with this Agreement. 

“International Registry” means the International Registry under the Cape Town Convention. 

“Investment Collateral” has the meaning specified in Section 2.01(h). 

  
 5 

 “Lease Assignment Documents” means, in respect of any Assigned Lease, (a) any
agreement providing for the novation thereof to substitute, or the assignment thereof to, a Grantor as the lessor, (b) any agreement or instrument supplemental to this Agreement for the purpose of effecting and/or perfecting the assignment of,
and the grant of a lien upon, such Assigned Lease in favor of the Collateral Agent under any applicable law (other than the law of the State of New York), (c) any notice provided to the applicable Lessee of the assignment thereof pursuant to
this Agreement and/or such supplement, (d) any acknowledgment of such assignment by such Lessee and (e) any undertaking of quiet enjoyment given by the Collateral Agent in respect thereof. 

“Lease Collateral” has the meaning specified in Section 2.01(b). 

“Lenders” has the meaning specified in the preliminary statements to this Agreement. 

“Lessee Acknowledgment” has the meaning set forth in Section 2.16(d)(ii). 

“Lessee Notice” has the meaning set forth in Section 2.16(d)(ii). 

“Membership Interest Collateral” has the meaning specified in Section 2.01(g). 

“Moody’s” means Moody’s Investors Service, Inc. 

“Parts” means all appliances, parts, components, instruments, appurtenances, accessories, furnishings, seats and other
equipment of whatever nature (other than (a) Engines or engines, and (b) any appliance, part, component, instrument, appurtenance, accessory, furnishing, seat or other equipment that would qualify as a removable part and is leased by a
Lessee from a third party or is subject to a security interest granted to a third party), that may from time to time be installed or incorporated in or attached or appurtenant to any Airframe or any Engine or removed therefrom. 

“Pledged Beneficial Interest” means all of the beneficial interest in certain Grantors (other than the Borrower) described in
the attached Schedule II or in any Collateral Supplement or Grantor Supplement. 
 “Pledged Equity Interests” means
the Pledged Beneficial Interest, the Pledged Membership Interest and the Pledged Stock. 
 “Pledged Equity Party”
means each Lessor Subsidiary, and each Intermediate Lessee. 
 “Pledged Membership Interest” means all of the
membership interest in certain Grantors (other than the Borrower) described in the attached Schedule II or in any Collateral Supplement or Grantor Supplement. 
 “Pledged Stock” means all of the outstanding shares of capital stock and/or issued share capital in certain Grantors (other than the Borrower) described in the attached Schedule II or in any
Collateral Supplement or Grantor Supplement. 

  
 6 

 “Protocol” means the Protocol to the Convention on Matters Specific to Aircraft
Equipment, as in effect in any applicable jurisdiction from time to time. 
 “Received Currency” has the meaning
specified in Section 8.07. 
 “Related Collateral Documents” means a letter of credit, third-party or bank
guarantee or cash collateral provided by or on behalf of a Lessee to secure such Lessee’s obligations under a Lease, in each case to the extent assignable without the consent of a third party. 

“Relevant Collateral” has the meaning specified in Section 2.07(a). 

“Relevant FAA Aircraft Mortgages” means, collectively, the FAA Aircraft Mortgages. 

“Relevant FAA Aircraft Mortgages and Lease Security Assignments” means, collectively, the FAA Aircraft Mortgage and Lease
Security Assignments. 
 “Relevant FAA Lease Security Assignments” means, collectively, the FAA Lease Security
Assignments. 
 “Required Cape Town Registrations” has the meaning set forth in Section 2.08(e). 

“Revised Book-Entry Rules” means 31 C.F.R. § 357 (Treasury bills, notes and bonds); 12 C.F.R. § 615 (book-entry
securities of the Farm Credit Administration); 12 C.F.R. §§ 987 (book-entry securities of the Federal Home Loan Banks); 24 C.F.R. § 81 (book-entry securities of the Federal National Mortgage Association and the Federal Home Loan
Mortgage Corporation); 12 C.F.R. § 1511 (book-entry securities of the Resolution Funding Corporation); 31 C.F.R. § 354 (book-entry securities of the Student Loan Marketing Association); and any substantially comparable book-entry rules of
any other Federal agency or instrumentality of the United States. 
 “Secured Obligations” has the meaning assigned to
the term “Obligations” in the Credit Agreement. 
 “Secured Party” means any of or, in the plural form, all
of the Collateral Agent, the Lenders, the Administrative Agent, the Paying Agent, the Syndication Agent and the Hedge Counterparties. 
 “Securities Account” means a securities account as defined in Section 8-501(a) of the UCC maintained in the name of the Collateral Agent as “entitlement holder” (as defined in
Section 8-102(a)(7) of the UCC) on the books and records of a Securities Intermediary whose “securities intermediary’s jurisdiction” (within the meaning of Section 8-110(e) of the UCC) is the State of New York. For all
purposes under this Agreement and the other Loan Documents, the LTV Securities Account shall be a Securities Account. 

  
 7 

 “Standard & Poor’s” means Standard & Poor’s Ratings
Services, a division of The McGraw-Hill Companies, Inc. 
 “Stock Collateral” has the meaning specified in
Section 2.01(f). 
 “Third Party Event” has the meaning specified in Section 2.16(a). 

“UCC” means the Uniform Commercial Code as in effect on the date of determination in the State of New York; provided
that if by reason of mandatory provisions of law, the perfection or the effect of perfection or non-perfection of the security interest in any Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than New York,
“UCC” means the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the provisions of this Agreement relating to such perfection or effect of perfection or non-perfection. 

“Uncertificated Security” means an uncertificated security (as defined in Section 8-102(a)(18) of the UCC) other than a
Government Security. 
 “Wells Fargo” has the meaning specified in the preliminary statements of this Agreement.

 (b) Terms Defined in the Cape Town Convention. The following terms shall have the respective meanings ascribed thereto
in the Cape Town Convention: “Administrator”, “Contracting State”, “Contract of Sale”, “International Interest”, “Professional User Entity”, “Prospective International Interest”,
“situated in” and “Transacting User Entity”. 
 (c) Terms Defined in the Credit Agreement. For all
purposes of this Agreement, all capitalized terms used but not defined in this Agreement shall have the respective meanings assigned to such terms in the Credit Agreement. 
 (d) Terms Defined in the Australian PPSA. Unless the contrary intention appears in this Agreement, where terms which are defined in the Australian PPSA are used in the context of the Australian
PPSA, they have the meanings they have in the Australian PPSA. 
 Section 1.02 Construction and Usage.
Unless the context otherwise requires: 
 (a) A term has the meaning assigned to it and an accounting term not otherwise defined
has the meaning assigned to it in accordance with GAAP or IFRS. 

  
 8 

 (b) The terms “herein”, “hereof” and other words of similar import refer
to this Agreement as a whole and not to any particular Article, Section or other subdivision. 
 (c) Unless otherwise
indicated in context, all references to Articles, Sections, Schedules or Exhibits refer to an Article or Section of, or a Schedule or Exhibit to, this Agreement. 
 (d) To the extent that they refer to or concern the Borrower, any references in this Agreement to “director” or “directors” shall be read as to mean “manager” or
“managers” respectively. 
 (e) Words of the masculine, feminine or neuter gender shall mean and include the
correlative words of other genders, and words in the singular shall include the plural, and vice versa. 
 (f) The terms
“include”, “including” and similar terms shall be construed as if followed by the phrase “without limitation”. 
 (g) References in this Agreement to an agreement or other document (including this Agreement) include references to such agreement or document as amended, replaced or otherwise modified (without, however,
limiting the effect of the provisions of this Agreement with regard to any such amendment, replacement or modification), and the provisions of this Agreement apply to successive events and transactions. References to any Person shall include such
Person’s successors in interest and permitted assigns. 
 (h) References in this Agreement to any statute or other
legislative provision shall include any statutory or legislative modification or re-enactment thereof, or any substitution therefor, and references to any governmental Person shall include reference to any governmental Person succeeding to the
relevant functions of such Person. 
 (i) References in this Agreement to the Loans include the conditions applicable to the
Loans and any reference to any amount of money due or payable by reference to the Loans shall include any sum covenanted to be paid by any Grantor under this Agreement in respect thereof. 

(j) References in this Agreement to any action, remedy or method of judicial proceeding for the enforcement of the rights of creditors or
of security shall be deemed to include, in respect of any jurisdiction other than the State of New York, references to such action, remedy or method of judicial proceeding for the enforcement of the rights of creditors or of security available or
appropriate in such jurisdiction as shall most nearly approximate such action, remedy or method of judicial proceeding described or referred to in this Agreement. 
 (k) Where any payment is to be made, funds applied or any calculation is to be made hereunder on a day which is not a Business Day, unless any Loan Document otherwise provides, such payment shall be made,
funds applied and calculation made on the next succeeding Business Day, and payments shall be adjusted accordingly; provided, however, that no additional interest shall be due in respect of such delay. 

  
 9 

 ARTICLE II 
 SECURITY 
 Section 2.01 Grant of Security. 

To secure the Secured Obligations, each Grantor hereby assigns and pledges to the Collateral Agent, for its benefit and the benefit of
the other Secured Parties, and hereby grants to the Collateral Agent for its benefit and the benefit of the other Secured Parties a security interest in, all of such Grantor’s right, title and interest in and to the following, whether now owned
or hereafter acquired (collectively, the “Collateral”): 
 (a) with respect to each Grantor, all of such
Grantor’s right, title and interest in and to (i) each Pool Aircraft, including the Airframe and Engines as the same is now and will hereafter be constituted, and in the case of such Engines, whether or not any such Engine shall be
installed in or attached to the Airframe or any other airframe, together with (ii) all Parts of whatever nature, which are from time to time included within the definitions of “Airframe” or “Engines”, including all
substitutions, renewals and replacements of and additions, improvements, accessions and accumulations to the Airframe and Engines (other than additions, improvements, accessions and accumulations which constitute appliances, parts, instruments,
appurtenances, accessories, furnishings or other equipment excluded from the definition of Parts), (iii) all Aircraft Documents and (iv) any money or non-money proceeds of an Airframe or Engine arising from the total or partial loss or
destruction of such Airframe or its Engine or its total or partial confiscation, condemnation or requisition; 
 (b) with
respect to each Grantor, all of such Grantor’s right, title and interest in and to all Leases to which such Grantor is or may from time to time be party with respect to the Pool Aircraft and any leasing arrangements (including, without
limitation, all Intermediate Leases) among Grantors with respect to such Leases together with all Related Collateral Documents (all such Leases and Related Collateral Documents, the “Assigned Leases”), including, without limitation,
(i) all rights of such Grantor to receive moneys due and to become due under or pursuant to such Assigned Leases, (ii) all rights of such Grantor to receive proceeds of any insurance, indemnity, warranty or guaranty with respect to such
Assigned Leases, (iii) claims of such Grantor for damages arising out of or for breach or default under such Assigned Leases, (iv) all rights under any such Assigned Lease with respect to any subleases of the Pool Aircraft subject to such
Assigned Lease and (v) the right of such Grantor to terminate such Assigned Leases and to compel performance of, and otherwise to exercise all remedies under, any Assigned Lease, whether arising under such Assigned Leases or by statute or at
law or in equity (the “Lease Collateral”); 
 (c) with respect to each Grantor, all of the following (the
“Assigned Agreement Collateral”): 
 (i) all of such Grantor’s right, title and interest in
and to all security assignments, cash deposit agreements and other security agreements executed in its favor in respect of any Pool Aircraft (including any Airframe and any Engine) or in respect of or pursuant to any Assigned Lease, and in the
Servicing Agreement, in each case as such agreements may be amended or otherwise modified from time to time (collectively, the “Assigned Agreements”); and 

  
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 (ii) all of such Grantor’s right, title and interest in and to all
property of whatever nature, in each case pledged, assigned or transferred to it or mortgaged or charged in its favor pursuant to any Assigned Agreement; 
 (d) with respect to each Grantor, all of such Grantor’s right, title and interest in and to the Acquisition Agreements (the “Aircraft Purchase Collateral”); 

(e) with respect to each Grantor, all of the following (the “Beneficial Interest Collateral”): 

(i) the Pledged Beneficial Interest, all certificates, if any, from time to time representing all of such Grantor’s
right, title and interest in the Pledged Beneficial Interest, any contracts and instruments pursuant to which any such Pledged Beneficial Interest are created or issued and all distributions, cash, instruments and other property from time to time
received, receivable or otherwise distributed in respect of or in exchange for any or all of the Pledged Beneficial Interest; and 
 (ii) all of such Grantor’s right, title and interest in all additional beneficial interests in any Pledged Equity Party from time to time acquired by such Grantor in any manner, including the
beneficial interests in any Pledged Equity Party that may be formed from time to time, the trust agreements and any other contracts and instruments pursuant to which any such Pledged Equity Party is created or issued, and all certificates, if any,
from time to time representing such additional beneficial interests and all distributions, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all such
additional beneficial interests; 
 (f) with respect to each Grantor, all of the following (the “Stock
Collateral”): 
 (i) the Pledged Stock and the certificates representing such Pledged Stock, and all
dividends, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the Pledged Stock; and 

(ii) all additional shares of the capital stock of any other Pledged Equity Party from time to time acquired by such
Grantor in any manner, including the capital stock of any other Pledged Equity Party that may be formed from time to time, and all certificates, if any, representing such additional shares of the capital stock and all dividends, cash, instruments
and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all such additional shares; 

  
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 (g) with respect to each Grantor, all of the following (the “Membership Interest
Collateral”): 
 (i) the Pledged Membership Interests, all certificates, if any, from time to time
representing all of such Grantor’s right, title and interest in the Pledged Membership Interests, any contracts and instruments pursuant to which any such Pledged Membership Interests are created or issued and all distributions, cash,
instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the Pledged Membership Interests; and 

(ii) all of such Grantor’s right, title and interest in all additional membership interests in any other Pledged
Equity Party from time to time acquired by such Grantor in any manner, including the membership interests in any other Pledged Equity Party that may be formed from time to time, and all certificates, if any, from time to time representing such
additional membership interests and all distributions, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all such additional membership interests; 

(h) all other “investment property” (as defined in Section 9-102(a)(49) of the UCC) of such Grantor (but not, for the
avoidance of doubt, shares in the Borrower) in respect of any Lessor Subsidiary or any Intermediate Lessee (the “Investment Collateral”) including written notification of all interest, dividends, instruments and other property from
time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the then existing Investment Collateral, but excluding any loans or advances made, or dividends or other amounts paid, by any Grantor to any
Borrower Party; 
 (i) with respect to each Grantor, all of the following (the “Account Collateral”):

 (i) all monies and securities from time to time deposited or credited, or required to be deposited or
credited, into any Securities Account pursuant to the terms of this Agreement or any other Loan Document, including all Eligible Accounts; 
 (ii) all cash, Investment Securities and other financial assets held in any Eligible Account by the Collateral Agent or an Eligible Institution; all Cash Collateral; and all security entitlements with
respect thereto; and 
 (iii) each Securities Account (including the LTV Securities Account); 

(j) with respect to each Grantor, all of such Grantor’s right, title and interest in and to the personal property identified in a
Grantor Supplement or a Collateral Supplement executed and delivered by such Grantor to the Collateral Agent; and 

  
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 (k) all proceeds of any and all of the foregoing Collateral (including proceeds that
constitute property of the types described in subsections (a), (b), (c), (d), (e), (f), (g), (h), (i) and (j) of this Section 2.01); 
 provided that the Collateral shall not include any Excluded Property; provided, further, that notwithstanding any of the foregoing provisions, so long as no Event of Default shall
have occurred and be continuing, each Grantor shall have the right, to the exclusion of the Collateral Agent, to (i) all distributions, cash, instruments and other property from time to time received, receivable or otherwise distributed in
respect of or in exchange for any or all of the Equity Collateral and (ii) the Investment Collateral, and once paid by a Grantor to a non-Grantor shall be free and clear of the Lien hereof and shall not constitute Collateral. The foregoing
proviso shall in no event give rise to any right on behalf of any Borrower Party to cause the release of Cash Collateral from the LTV Securities Account other than pursuant to a Release Request or Section 2.12 of the Credit Agreement, and
subject to all related terms and conditions in the Loan Documents. 
 Section 2.02 Security for Obligations.
This Agreement secures the payment and performance of all Secured Obligations of the Borrower Parties to each Secured Party (subject to the subordination provisions of this Agreement) and shall be held by the Collateral Agent in trust for the
Secured Parties. Without limiting the generality of the foregoing, this Agreement secures the payment of all amounts that constitute part of the Secured Obligations and would be owed by any Grantor to any Secured Party but for the fact that Secured
Obligations are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving such Grantor. 
 Section 2.03 Representations and Warranties of the Grantors. Each Grantor represents and warrants as of the date of this Agreement, each Release Date and as of each date on which such
Grantor subjects a new Pool Aircraft to this Agreement solely with respect to such Pool Aircraft and such Grantor, as follows: 

(a) Each Pool Aircraft is either legally and beneficially owned by a Lessor Subsidiary or legally owned by a Lessor Subsidiary and
beneficially owned by a Borrower Party, in each case, except to the extent of the Local Requirements Exception. The Grantors are the legal and beneficial owners of the other Collateral. None of the Collateral has been pledged, assigned, sold or
otherwise encumbered other than pursuant to the terms of the Loan Documents and except for Permitted Liens, and no Collateral is described in (i) any UCC Financing Statements filed against any Borrower Party other than UCC Financing Statements
which have been terminated and the UCC Financing Statements filed in connection with Permitted Liens or (ii) any other mortgage registries, including the International Registry (which for the avoidance of doubt, shall not include any Contract
of Sale in favor of any Grantor), or filing records that may be applicable to the Collateral in any other relevant jurisdiction, other than such filings or registrations that have been terminated or that have been made in connection with Permitted
Liens, this Agreement or any other security document in favor of the Collateral Agent for the benefit of the Secured Parties, or, with respect to the Leases, in favor of the Borrower Parties or the Lessee thereunder. 

  
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 (b) This Agreement creates a valid and (upon the taking of the actions required hereby)
perfected security interest in favor of the Collateral Agent in the Collateral as security for the Secured Obligations, subject in priority to no other Liens (other than Permitted Liens (other than, in the case of priority, the Permitted Lien
described in clause (p) of the definition of Permitted Liens)), and all filings and other actions necessary to perfect and protect such security interest as a first priority security interest of the Collateral Agent have been (or in the case of
future Collateral will be) duly taken (except that only the Express Perfection Requirements shall be required to be satisfied), enforceable against the applicable Borrower Parties and creditors of and purchasers from such Borrower Parties.

 (c) No Grantor has any trade names except as set forth on Schedule III hereto. 

(d) No consent of any other Person and no authorization, approval or other action by, and no notice to or filing with, any governmental
authority or regulatory body or other third party (including, for the avoidance of doubt, the International Registry) is required under the laws of the United States, Delaware, Utah, Connecticut, Bermuda, Ireland, Australia, Luxembourg or any Other
Relevant Jurisdiction (or, with respect to any Pool Aircraft that is not registered in a jurisdiction that has Ratified the Cape Town Convention, and any related Assigned Lease, under relevant local law) either (i) for the grant by such Grantor
of the assignment and security interest granted hereby, (ii) for the execution, delivery or performance of this Agreement by such Grantor or (iii) for the perfection or maintenance of the pledge, assignment and security interest created
hereby, except for (A) with respect to each Pool Aircraft whose country of registration is the United States of America, the filing with the FAA, in due form, for recordation where applicable, pursuant to Section 40102 and
Section 44101 through Section 44112 of Title 49, United States Code, “Transportation,” of any and all title, registration and financing documentation necessary to accomplish the purposes of this Agreement, including, without
limitation, each of the Relevant FAA Aircraft Mortgages, each of the Relevant FAA Aircraft Mortgages and Lease Assignments and/or each of the Relevant FAA Lease Security Assignments, as applicable, with respect to such Pool Aircraft and/or the
related Assigned Lease, (B) the Required Cape Town Registrations, (C) the filing of financing and continuation statements under the UCC, (D) the applicable Irish filings pursuant to Section 2.08(f), (E) the applicable
Bermudan filings pursuant to Section 2.08(f), (F) the applicable Luxembourg registrations pursuant to any Luxembourg Share Pledge, (G) the applicable Australian filings pursuant to Section 2.08(f), and (H) such other filings
as are required under relevant local law in the case of Grantors that are not domiciled in the United States or a state thereof and in the case of each Pool Aircraft that is not registered in a jurisdiction that has Ratified the Cape Town Convention
and, in each case the related Assigned Leases. 
 (e) The chief place of business, organizational identification number or
company registration number (if applicable) and chief executive or registered office of such Grantor and the office where such Grantor keeps records of the Collateral are located at the address specified opposite the name of such Grantor on the
attached Schedule IV. If such Grantor is the lessor under a Cape Town Lease, it has the right to assign the International Interest provided for in such Cape Town Lease and all associated rights in respect of such Cape Town Lease that form part of
the Collateral. 

  
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 (f) The Pledged Stock constitutes the percentage of the issued and outstanding shares of
capital stock of the issuers thereof indicated on the attached Schedule II. The Pledged Membership Interests constitute the percentage of the membership interest of the issuer thereof, as indicated on Schedule II hereto. The Pledged Beneficial
Interests constitute the percentage of the beneficial interest of the issuer thereof indicated on Schedule II hereto. 
 (g) The
Pledged Stock, the Pledged Membership Interests and the Pledged Beneficial Interests have been duly authorized and validly issued and are fully paid up and nonassessable. 
 (h) The Pledged Stock and the Pledged Membership Interests constitute “certificated securities” within the meaning of Section 8-102(4) of the UCC. Any Certificated Security or Instrument
evidencing the Pledged Stock, the Pledged Beneficial Interests, the Pledged Membership Interests and any Investment Collateral have been delivered to the Collateral Agent in accordance with Section 2.05 and 2.07. The Pledged Stock and the
Pledged Membership Interest either (i) are in bearer form, (ii) have been indorsed by an effective indorsement to the Collateral Agent or in blank or (iii) have been registered in the name of the Collateral Agent. None of the Pledged
Stock, the Pledged Beneficial Interests and the Pledged Membership Interest that constitute or evidence the Collateral have any marks or notations indicating that they have been pledged, assigned or otherwise conveyed to any person other than the
Collateral Agent. Any Pledged Beneficial Interests either (i) constitute “certificated securities” within the meaning of Section 8-102(a)(4) of the UCC, have been delivered to the Collateral Agent and are either (1) are in
bearer form, (2) have been indorsed, by an effective indorsement, to the Collateral Agent or in blank or (3) have been registered in the name of the Collateral Agent or (ii) a fully executed “control agreement” has been
delivered to the Collateral Agent with respect to such Pledged Beneficial Interests. 
 (i) A true and complete copy of each
Assigned Agreement in effect on the date hereof has been delivered (or will be delivered within no more than ten (10) Business Days) to the Collateral Agent. Each Assigned Document upon its inclusion in the Collateral will have been duly
authorized, executed and delivered by the relevant Grantors, will be in full force and effect and will be binding upon and enforceable against all parties thereto in accordance with their terms. 

Section 2.04 Grantors Remain Liable. Anything contained herein to the contrary notwithstanding, (a) each
Grantor shall remain liable under the contracts and agreements included in the Collateral to the extent set forth therein to perform all of its duties and obligations thereunder to the same extent as if this Agreement had not been executed,
(b) the exercise by the Collateral Agent of any of its rights hereunder shall not release any Grantor from any of its duties or obligations under the contracts and agreements included in the Collateral and (c) in each case, unless the
Collateral Agent or any other Secured Party, expressly in writing or by operation of law, assumes or succeeds to the interests of any Grantor hereunder, no Secured Party shall have any obligation or liability under the contracts and agreements
included in the Collateral by reason of this Agreement, nor shall any Secured Party be obligated to perform any of the obligations or duties of any Grantor under the contracts and agreements included in the Collateral or to take any action to
collect or enforce any claim for payment assigned under this Agreement. 

  
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 Section 2.05 Delivery of Collateral. Subject to the last sentence
of this Section 2.05, all certificates or instruments representing or evidencing any Collateral, if deliverable, shall be delivered to and held by or on behalf of the Collateral Agent and shall be in suitable form for transfer by delivery, or
shall be accompanied by duly executed instruments of transfer or assignment in blank, all in form and substance satisfactory to evidence the security interests granted thereby. The Collateral Agent shall have the right, upon the occurrence and
during the continuance of an Event of Default, to transfer to or to register in the name of the Collateral Agent or any of its nominees any or all of the Pledged Equity Interests, subject only to the revocable rights specified in
Section 2.10(a). In addition, the Collateral Agent shall have the right at any time, upon the occurrence and during the continuance of an Event of Default, to exchange certificates or instruments representing or evidencing any Collateral for
certificates or instruments of smaller or larger denominations. To the extent that any Assigned Lease constitutes “tangible chattel paper” (as defined in Section 9-102(a)(78) of the UCC), the Grantors shall, if it has an original of
such Assigned Lease in its possession, cause the original of such Assigned Lease (the “Chattel Paper Original”) to be delivered to the Collateral Agent promptly (and in any case no later than ten (10) Business Days) after the
execution and delivery of such Assigned Lease by all its parties. Notwithstanding anything else to the contrary in any Loan Document, no Grantor shall be required to deliver to the Collateral Agent any letter of credit issued pursuant to an Assigned
Lease. 
 Section 2.06 As to the Assigned Documents. (a) Upon the inclusion of any Assigned
Document (other than an Assigned Lease) in the Collateral, the relevant Grantor will deliver to the Collateral Agent a consent, in substantially the form of Exhibit B and executed by each party to such Assigned Document (other than any other
Grantor) or (where the terms of such Assigned Document expressly provide for a consent to its assignment for security purposes to substantially the same effect as Exhibit B) will give due notice to each such other party to such Assigned Document of
its assignment pursuant to this Agreement. Upon the inclusion of any Assigned Lease in the Collateral, promptly after its receipt thereof from the relevant Lessee party thereto, the relevant Grantor will deliver to the Collateral Agent (to the
extent required in accordance with the Express Perfection Requirements) (i) such consents, acknowledgments and/or notices as are provided for in the related Lease Assignment Documents and (ii) such consents, acknowledgments and/or notices
as are necessary or customary under the terms of such Assigned Lease and under the applicable law of the jurisdiction governing such Assigned Lease and the jurisdiction in which the relevant lessee is principally located or the applicable Pool
Aircraft is registered in order to effect and perfect the assignment of, and grant of a lien upon, such Assigned Lease pursuant to this Agreement (including, with respect to each Assigned Lease which constitutes an International Interest
(A) where the applicable Lessee is situated for purposes of the Cape Town Convention in a jurisdiction that is a Contracting State or (B) the related Aircraft Object is registered in a Contracting State, registration of such International
Interest and the assignment thereof at the International Registry) and/or to assure the payment of all amounts under such Assigned Lease to the appropriate Securities Account in accordance with the terms of the Credit Agreement. Upon the written
request of any Grantor, the Collateral Agent (solely in its capacity as such) will execute such undertakings of quiet enjoyment in favor of the Lessee under any Assigned Lease as are provided for in the Lease Assignment Documents or as are
substantially to the same effect as the undertakings of quiet enjoyment provided for in such Assigned Lease. 

  
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 (b) Upon (i) the inclusion of any Assigned Document in the Collateral or (ii) the
amendment or replacement of any Assigned Document or the entering into of any new Assigned Document, the relevant Grantor will deliver within ten (10) Business Days of such inclusion a copy thereof to the Collateral Agent and will take such
other action as may be necessary to perfect the lien of this Agreement as to such Assigned Document such that the security interest therein granted to the Collateral Agent is senior to that of any other creditor of the Borrower or as otherwise
reasonably requested by the Collateral Agent (provided that only the Express Perfection Requirements shall be required to be satisfied). 
 (c) Each Grantor shall, at its expense: 
 (i) use reasonable commercial efforts,
in accordance with Leasing Company Practice to (A) perform and observe all the terms and provisions of the Assigned Documents to be performed or observed by it, (B) enforce the Assigned Documents in accordance with their terms and
(C) after an Event of Default has occurred and is continuing take all such action to such end as may be from time to time reasonably requested by the Collateral Agent; and 

(ii) furnish to the Collateral Agent promptly upon receipt copies of each amendment, supplement or waiver to a Lease received by such
Grantor under or pursuant to the Assigned Documents, and from time to time, subject to the provisions of the applicable Assigned Document, relating to the Lessee’s obligation to furnish such information and subject to any confidentiality
provisions therein, (A) furnish to the Collateral Agent such information and reports regarding the Collateral as the Collateral Agent may reasonably request and (B) upon reasonable request of the Collateral Agent make to each other party
to any Assigned Document such demands and requests for information and reports or for action as such Grantor is entitled to make thereunder. 
 (d) So long as no Event of Default shall have occurred and be continuing, and notwithstanding any provision to the contrary in this Agreement, each Grantor shall be entitled, to the exclusion of the
Collateral Agent but subject always to the terms of the Loan Documents (x) to exercise and receive, directly or indirectly through one or more agents, any of the claims, rights, powers, privileges, remedies and other benefits under, pursuant
to, with respect to or arising out of the Assigned Documents and (y) to take any action or to not take any action, directly or indirectly through one or more agents, related to the Assigned Documents and the lessees or counterparties
thereunder, including entering into, amending, supplementing, terminating, granting waivers, performing, enforcing, compelling performance of, exercising all remedies (whether arising under any Assigned Document or by statute or at law or in equity
or otherwise) under, exercising rights, elections or options or taking any other action under or in respect of, granting or withholding notices, waivers, approvals and consents in respect of, receiving all payments under, dealing with any credit
support or collateral security in respect of, or taking any other action in respect of, the Assigned Documents and contacting or otherwise having any dealings with any lessee or counterparty thereunder; provided, however, (i) so
long as any Assigned Lease remains in effect, no Grantor will abrogate any right, power or privilege granted expressly in favor of the Collateral Agent or any other Secured Party under any Lease Assignment Document and (ii) during the
continuance of an Event of Default, all such rights of each Grantor shall cease, and all such rights shall become vested in the Collateral Agent, which shall thereupon have the sole right to exercise or refrain from exercising such rights.

  
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 Section 2.07 As to Beneficial Interest Collateral.
(a) All Stock Collateral, Membership Interest Collateral and Beneficial Interest Collateral (collectively, the “Equity Collateral”) and all Investment Collateral (together with the Equity Collateral, the “Relevant
Collateral”) shall be delivered to the Collateral Agent as follows: 
 (i) in the case of each Certificated Security
or Instrument, by (A) causing the delivery of such Certificated Security or Instrument to the Collateral Agent, registered in the name of the Collateral Agent or duly endorsed by an appropriate person to the Collateral Agent or in blank and, in
each case, held by the Collateral Agent, or (B) if such Certificated Security or Instrument is registered in the name of any Securities Intermediary on the books of the issuer thereof or on the books of any Securities Intermediary, by causing
such Securities Intermediary to continuously credit by book entry such Certificated Security or Instrument to a Securities Account maintained by such Securities Intermediary in the name of the Collateral Agent and confirming in writing to the
Collateral Agent that it has been so credited; 
 (ii) in the case of each Uncertificated Security, by (A) causing such
Uncertificated Security to be continuously registered on the books of the issuer thereof in the name of the Collateral Agent or (B) if such Uncertificated Security is registered in the name of a Securities Intermediary on the books of the
issuer thereof or on the books of any securities intermediary of a Securities Intermediary, by causing such Securities Intermediary to continuously credit by book entry such Uncertificated Security to a Securities Account maintained by such
Securities Intermediary in the name of the Collateral Agent and confirming in writing to the Collateral Agent that it has been so credited; and 
 (iii) in the case of each Government Security registered in the name of any Securities Intermediary on the books of the Federal Reserve Bank of New York or on the books of any securities intermediary of
such Securities Intermediary, by causing such Securities Intermediary to continuously credit by book entry such security to the Securities Account maintained by such Securities Intermediary in the name of the Collateral Agent and confirming in
writing to the Collateral Agent that it has been so credited. 

  
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 (b) Each Grantor and the Collateral Agent hereby represents, with respect to the Relevant
Collateral, that it has not entered into, and hereby agrees that it will not enter into, any agreement (i) with any of the other parties hereto or any Securities Intermediary specifying any jurisdiction other than the State of New York as the
“securities intermediary’s jurisdiction” within the meaning of Section 8-110(e) of the UCC in connection with any Securities Account with any Securities Intermediary referred to in Section 2.07(a) for purposes of 31 C.F.R.
Section 357.11(b), Section 8-110(e) of the UCC or any similar state or Federal law, or (ii) with any other person relating to such account pursuant to which it has agreed that any Securities Intermediary may comply with entitlement
orders made by such person. The Collateral Agent represents that it will, by express agreement with each Securities Intermediary, provide for each item of property constituting Relevant Collateral held in and credited to the Securities Account,
including cash, to be treated as a “financial asset” within the meaning of Section 8-102(a)(9)(iii) of the UCC for the purposes of Article 8 of the UCC. 
 (c) Without limiting the foregoing, each Grantor and the Collateral Agent agree, and the Collateral Agent shall cause each Securities Intermediary, to take such different or additional action as may be
required in order to maintain the perfection and priority of the security interest of the Collateral Agent in the Relevant Collateral in the event of any change in applicable law or regulation, including Articles 8 and 9 of the UCC and regulations
of the U.S. Department of the Treasury governing transfers of interests in Government Securities. 

Section 2.08 Further Assurances. (a) Each Grantor agrees that from time to time, at the expense of such
Grantor, such Grantor shall promptly execute and deliver all further instruments and documents, and take all further action (including under the laws of any foreign jurisdiction), that may be necessary, or that the Collateral Agent may reasonably
request, in order to perfect and protect any pledge, assignment or security interest granted or purported to be granted hereby or to enable the Collateral Agent to exercise and enforce its rights and remedies hereunder with respect to any Collateral
(except that only the Express Perfection Requirements shall be required to be satisfied). Without limiting the generality of the foregoing, each Grantor shall: (i) mark conspicuously its applicable records pertaining to the Collateral with a
legend, indicating that such Collateral is subject to the security interest granted hereby; (ii) if any Collateral shall be evidenced by an instrument or “tangible chattel paper” (as defined in Section 9-102(a)(78) of the UCC)
(other than a promissory note, unless an Event of Default shall have occurred and be continuing), deliver and pledge to the Collateral Agent hereunder such note or instrument or tangible chattel paper duly indorsed and accompanied by duly executed
instruments of transfer or assignment in blank; (iii) execute and file such financing or continuation statements, or amendments thereto, and such other instruments or notices, that may be necessary, or as the Collateral Agent may reasonably
request, in order to perfect and preserve the pledge, assignment and security interest granted or purported to be granted hereby and (iv) execute, file, record, or register such additional documents and supplements to this Agreement, including
any further assignments, security agreements, pledges, grants and transfers, as may be required under the laws of any foreign jurisdiction or as the Collateral Agent may reasonably request, to create, attach, perfect, validate, render enforceable,
protect or establish the priority of the security interest and lien of this Agreement (except that only the Express Perfection Requirements shall be required to be satisfied). 

  
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 (b) Each Grantor hereby authorizes the Collateral Agent to file one or more financing or
continuation statements, and amendments thereto, relating to all or any part of the Collateral without the signature of such Grantor where permitted by law. A photocopy or other reproduction of this Agreement or any financing statement covering the
Collateral or any part thereof shall be sufficient as a financing statement where permitted by law. 
 (c) Each Grantor shall
furnish or cause to be furnished to the Collateral Agent from time to time statements and schedules further identifying and describing the Collateral and such other reports in connection with the Collateral as the Collateral Agent may reasonably
request, all in reasonable detail. 
 (d) Each Grantor shall, prior to or simultaneously with any Person becoming a lessor of
any Pool Aircraft, cause such Person to enter into a Grantor Supplement. 
 (e) Each Grantor shall ensure that at all times an
individual shall be appointed as administrator with respect to such Grantor for purposes of the International Registry and shall register or cause to be registered (or if the Collateral Agent is making such registration, without relieving each
Grantor of such obligation, consent to such registration) with the International Registry (collectively, the “Required Cape Town Registrations”): (i) the International Interest provided for hereunder with respect to each
Aircraft Object in respect of Pool Aircraft where the relevant Grantor is situated in a Contracting State or if such Aircraft Object is registered in a Contracting State; (ii) the International Interest provided for in any Cape Town Lease to
which such Grantor is a lessor or lessee; (iii) the assignment to the Collateral Agent of each International Interest described in clause (ii) and assigned to the Collateral Agent hereunder; and (iv) the Contract of Sale with respect
to any Pool Aircraft by which title to such Pool Aircraft is conveyed by or to such Grantor, but only if the seller under such Contract of Sale is situated in a Contracting State or if such Aircraft Object is registered in a Contracting State and if
such seller agrees to such registration. To the extent that (A) the Collateral Agent’s consent is required for any such registration, or (B) the Collateral Agent is required to initiate any such registration, the Collateral Agent
shall ensure that such consent or such initiation of such registration is effected, and no Grantor shall be in breach of this Section should the Collateral Agent fail to do so in a proper fashion (it being understood and agreed that in no event
shall the Collateral Agent be liable for any failure to so register as a result of such Grantor’s failure to provide any necessary information required for such registration in a timely manner or if such information is inaccurate or
incomplete). It is understood and agreed that International Interests provided for hereunder shall be registered in the name of the Collateral Agent in the order of priority provided for in clauses (a) and (b) of Section 3.02. The
parties hereto agree that for the purposes of the definition of Prospective International Interest in the Cape Town Convention, the making of the Loans by the Lenders shall constitute the stated event upon which the Borrower has created or provided
for an International Interest in the Aircraft Objects and Assigned Leases. 

  
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 (f) With respect to each Pool Aircraft that is registered in the United States of America,
each Grantor shall, so long as such Pool Aircraft is so registered, and (i) in the case of a Pool Aircraft that is not subject to an Assigned Lease, register and record with the FAA the Relevant FAA Aircraft Mortgages with respect to such Pool
Aircraft and (ii) in the case of a Pool Aircraft that is subject to an Assigned Lease, register and record with the FAA the Relevant FAA Aircraft Mortgages and Lease Security Assignments with respect to such Pool Aircraft. Each Grantor shall,
if at any time after the filing with the FAA of a Relevant FAA Aircraft Mortgage with respect to a Pool Aircraft such Pool Aircraft becomes subject to an Assigned Lease, register and record with the FAA the Relevant FAA Lease Security Assignments
with respect to such Aircraft. With respect to each Grantor incorporated under the laws of Ireland, such Grantor shall cause each Security Document executed in respect of its Equity Interest or the relevant particulars to be filed in the Irish
Companies Registration Office and, where applicable, the Irish Revenue Commissioners within 21 days of execution thereof. With respect to each Grantor incorporated under the laws of Bermuda, such Grantor shall (1) cause each such Bermuda
Share Charge executed in respect of such Pledged Equity Party to be filed with the Bermuda Registrar of Companies and (2) ensure that prior to entry into such Bermuda Share Charge, the consent of the Bermuda Monetary Authority to such Bermuda
Share Charge was obtained (if required). With respect to each Grantor incorporated under the laws of Australia, such Grantor shall (1) cause each such Australian Share Charge executed in respect of such Pledged Equity Party to be registered on
the Personal Properties Securities Register pursuant to, and as defined in, the Australian PPSA. With respect to each Grantor incorporated under the laws of any other acceptable jurisdiction (permitted in accordance with the Credit Agreement), such
Grantor shall take all steps required under the laws of such jurisdiction in order to ensure the validity, perfection, priority and enforceability of the security interests created thereby. 

(g) Without in any way limiting the relevant Grantor’s obligation to make the filings pursuant to the Express Perfection
Requirements, the Collateral Agent may apply for any registration or give any notification necessary under the Australian PPSA in connection with this Agreement. Prior to making any application for registration under the Australian PPSA, the
Collateral Agent will consult with the relevant Grantor for a period of not more than 5 Business Days in order to agree the final form of the financing statement. 
 (h) The Collateral Agent agrees and confirms that it will, if reasonably requested by the Grantor, consider in good faith a request to register a financing change statement to amend any financing
statement registered by the Collateral Agent in respect of an Australian Security Document pursuant to the Australian PPSA, so that the relevant financing statement accurately reflects the security interest held by the Collateral Agent. 

Section 2.09 Place of Perfection; Records. Each Grantor shall keep its chief place of business and chief
executive office and the office where it keeps its records concerning the Collateral at the location therefor specified in Schedule IV or, upon 30 days’ prior written notice to the Collateral Agent, at such other locations in a jurisdiction
where all actions required by Section 2.03(e) shall have been taken with respect to the Collateral. Subject to applicable confidentiality restrictions, each Grantor shall hold and preserve such records and shall permit representatives of the
Collateral Agent upon reasonable prior notice at any time during normal business hours reasonably to inspect and make abstracts from such records, all at the sole cost and expense of such Grantor. 

  
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 Section 2.10 Voting Rights; Dividends; Etc . (a) So long as
no Event of Default shall have occurred and be continuing: 
 (i) Each Grantor shall be entitled to exercise any and all voting
and other consensual rights pertaining to all or any part of the Relevant Collateral pledged by such Grantor for any purpose not inconsistent with the terms of this Agreement, the charter documents of such Grantor or the Loan Documents;
provided that such Grantor shall not exercise or shall refrain from exercising any such right if such action would constitute a breach of its obligations under the Loan Documents; and 

(ii) The Collateral Agent shall execute and deliver (or cause to be executed and delivered) to such Grantor all such proxies and other
instruments as such Grantor may reasonably request in writing and provide for the purpose of enabling such Grantor to exercise the voting and other rights that it is entitled to exercise pursuant to Section 2.10(a)(i). 

(b) After an Event of Default shall have occurred and be continuing, any and all distributions, dividends and interest paid in respect of
the Relevant Collateral pledged by such Grantor, including any and all (i) distributions, dividends and interest paid or payable other than in cash in respect of, and instruments and other property received, receivable or otherwise distributed
in respect of, or in exchange for, such Relevant Collateral; (ii) distributions, dividends and other distributions paid or payable in cash in respect of such Relevant Collateral in connection with a partial or total liquidation or dissolution
or in connection with a reduction of capital, capital surplus or paid-in surplus; and (iii) cash paid, payable or otherwise distributed in respect of principal of, or in redemption of, or in exchange for, such Relevant Collateral shall be
forthwith delivered to the Collateral Agent and, if received by such Grantor, shall be received in trust for the benefit of the Collateral Agent, be segregated from the other property or funds of such Grantor and be forthwith delivered to the
Collateral Agent in the same form as so received (with any necessary endorsement). 
 (c) During the continuance of an Event of
Default, all rights of each Grantor to exercise or refrain from exercising the voting and other consensual rights that it would otherwise be entitled to exercise pursuant to Section 2.10(a)(i) and 2.10(a)(ii) shall cease, and all such rights
shall thereupon become vested in the Collateral Agent, which shall thereupon have the sole right to exercise or refrain from exercising such voting and other consensual rights. 

Section 2.11 Transfers and Other Liens; Additional Shares or Interests. (a) No Grantor shall
(i) sell, assign (by operation of law or otherwise) or otherwise dispose of, or grant any option with respect to, any of the Collateral or (ii) create or suffer to exist any Lien upon or with respect to any of the Collateral of such
Grantor, in the case of clause (i) or (ii) other than (x) the pledge, assignment and security interest created by this Agreement, (y) as otherwise provided or permitted herein or in any other Loan Document and (z) any Junior
Lien in respect of the Junior Lien Collateral. 

  
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 (b) Except as otherwise provided pursuant to the Loan Documents, the Grantors shall not
issue, deliver or sell any shares, interests, participations or other equivalents except those pledged hereunder and except to the extent of the Local Requirements Exception. Any beneficial interests, membership interests or capital stock or other
securities or interests issued in respect of or in substitution for the Pledged Beneficial Interests, the Pledged Membership Interests or the Pledged Stock shall be issued or delivered (with any necessary endorsement) to the Collateral Agent in
accordance with Section 2.07. 
 Section 2.12 Collateral Agent Appointed Attorney-in-Fact. Each
Grantor hereby irrevocably appoints, as security for the Secured Obligations, the Collateral Agent as such Grantor’s attorney-in-fact, with full authority in the place and stead of such Grantor and in the name of such Grantor or otherwise, from
time to time in the Collateral Agent’s discretion during the occurrence and continuance of an Event of Default, to take any action and to execute any instrument that the Collateral Agent may deem necessary or advisable to accomplish the
purposes of this Agreement, including: 
 (a) to ask for, demand, collect, sue for, recover, compromise, receive and give
acquittance and receipts for moneys due and to become due under or in respect of any of the Collateral; 
 (b) to receive,
indorse and collect any drafts or other instruments and documents in connection included in the Collateral; 
 (c) to file any
claims or take any action or institute any proceedings that the Collateral Agent may deem necessary for the collection of any of the Collateral or otherwise to enforce the rights of the Collateral Agent with respect to any of the Collateral; and

 (d) to execute and file any financing or continuation statements, or amendments thereto, and such other instruments or
notices, as may be necessary, in order to perfect (except in the case of the Beneficial Interest Collateral provided pursuant to Section 2.01(e)) and preserve the pledge, assignment and security interest granted hereby; 

provided that the Collateral Agent’s exercise of any such power shall be subject to Section 2.06(d). 

Section 2.13 Collateral Agent May Perform. If any Grantor fails to perform any agreement contained in this
Agreement, the Collateral Agent may (but shall not be obligated to) after such prior notice as may be reasonable under the circumstances, itself perform, or cause performance of, such agreement, and the expenses of the Collateral Agent incurred in
connection with doing so shall be payable by the Grantors. 

  
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 Section 2.14 Covenant to Pay. Each Grantor covenants with the
Collateral Agent (for the benefit of the Secured Parties) that it will pay or discharge any monies and liabilities whatsoever that are now, or at any time hereafter may be, due, owing or payable by such Grantor in any currency, actually or
contingently, solely and/or jointly, and/or severally with another or others, as principal or surety on any account whatsoever pursuant to the Loan Documents in accordance with their terms. Each Grantor agrees that no payment or distribution by such
Grantor pursuant to the preceding sentence shall entitle such Grantor to exercise any rights of subrogation in respect thereof until the related Secured Obligations shall have been paid in full. All such payments shall be made in accordance with
Section 3.02. 
 Section 2.15 Delivery of Collateral Supplements. Upon the addition of any Pool
Aircraft or the acquisition by any Grantor of any Equity Collateral, each relevant Grantor shall concurrently execute and deliver to the Collateral Agent a Collateral Supplement duly completed with respect to such Collateral and shall take such
steps with respect to the perfection of such Collateral as are called for by this Agreement for Collateral of the same type; provided that the foregoing shall not be construed to impair or otherwise derogate from any restriction on any such
action in any Loan Document; and provided further that the failure of any Grantor to deliver any Collateral Supplement as to any such Collateral shall not impair the lien of this Agreement as to such Collateral. 

Section 2.16 Operational Covenants. 
 (a) Operation and Use. Each Grantor agrees that no Pool Aircraft will be maintained, used or operated in violation of any law, rule or regulation (including airworthiness directives) of any
government or Governmental Authority having jurisdiction over such Pool Aircraft or in violation of any airworthiness certificate, license or registration relating to such Pool Aircraft issued by any such government, except for minor violations, and
except to the extent any Grantor (or, if a Lease is then in effect with respect to such Pool Aircraft, any Lessee of such Pool Aircraft) is contesting in good faith the validity or application of any such law, rule or regulation in any manner that
does not involve any material risk of sale, forfeiture or loss of such Pool Aircraft or any material risk of subjecting any Secured Party to criminal liability or materially impair the Liens created by this Agreement or any other Security Document;
provided that the Borrower Parties shall only be entitled to contest mandatory grounding orders if they (or the applicable Lessee) do not operate such Pool Aircraft during such contest. The Grantors will not operate any Pool Aircraft, or
permit any Pool Aircraft to be operated or located, (i) in any area excluded from coverage by any insurance required by the terms of Section 2.17 and Schedule V of this Agreement or (ii) in any war zone or recognized or threatened
areas of hostilities unless covered by war risk insurance in accordance with Section 2.17 and Schedule V of this Agreement, in either case unless indemnified by a government authority as provided therein or unless located there due to an
emergency or an event outside the Lessee’s control, but only for so long as such emergency or event continues. 

  
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 Notwithstanding the other provisions of this Section 2.16, no breach of
Section 2.16 shall be deemed to have occurred by virtue of any act or omission of a Lessee or sub-lessee, or of any Person claiming by or through a Lessee or a sub-lessee, or of any Person which has possession of the Pool Aircraft or any Engine
for the purpose of repairs, maintenance, modification or storage, or by virtue of any requisition, seizure, or confiscation of the Pool Aircraft (other than seizure or confiscation arising from a breach by the Grantors of this Section 2.16(a))
(each, a “Third Party Event”); provided that (i) no Borrower Party consents or has consented to such Third Party Event; and (ii) the Grantor which is the lessor or owner of such Pool Aircraft promptly and diligently
takes such commercially reasonable actions in accordance with Leasing Company Practice in respect of such Third Party Event, including, as deemed appropriate (taking into account, inter alia, the laws of the jurisdictions in which the Pool
Aircraft are located), seeking to compel such Lessee or other relevant Person to remedy such Third Party Event or seeking to repossess the relevant Pool Aircraft or Engine. 
 (b) Identification of Collateral Agent’s Interest. The Grantors agree to use commercially reasonable efforts to affix or cause the relevant Lessee to affix, as applicable and to the
extent permitted under the relevant Lease, as promptly as practicable after the Effective Date and thereafter to maintain in the cockpit of each Pool Aircraft, in a clearly visible location, and on each Engine, a nameplate bearing the additional
inscription “MORTGAGED TO WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION, AS COLLATERAL AGENT” (such nameplate to be replaced, if necessary, with a nameplate reflecting the name of any successor Collateral Agent). 

(c) Registration. Each Grantor shall cause each Pool Aircraft to remain duly registered, under the laws of a country or
jurisdiction that is not a Prohibited Country or that is the country in which such Pool Aircraft is registered as of the date hereof, in the name of the relevant Grantor and reflecting the applicable Grantor (and, if applicable, the applicable
Intermediate Lessee) as lessor, in each case, if so permitted under the applicable registry; provided that a Pool Aircraft may be unregistered for a temporary period in connection with modification or maintenance of such Pool Aircraft. The
Collateral Agent agrees that it will cooperate with the relevant Grantor in changing the state of registration of any Pool Aircraft at the cost of the relevant Grantor and as the relevant Grantor may request, provided that such request does
not conflict with the relevant Grantor’s obligations under the Loan Documents. 
 (d) Extension or Amendment of
Leases. Upon execution of any amendment or extension of a Lease, the relevant Grantor shall comply with the provisions of Sections 2.06 and 2.08 of this Agreement, as applicable, and shall deliver to the Collateral Agent: 

(i) the Chattel Paper Original, if any, of such amendment or extension of the Lease (and any related Intermediate Lease); and

 (ii) to the extent that such extension or amendment under applicable laws of the relevant jurisidiction requires amendments
to the registration of the aircraft, copies of such legal opinions with regard to compliance with the registration requirements of the relevant jurisdiction, to the extent that receiving such legal opinions is consistent with Leasing Company
Practice. 

  
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 (e) Replacement of Leases. Upon execution of any replacement Lease, the
relevant Grantor shall comply with the provisions of Sections 2.06 and 2.08 of this Agreement, as applicable, and shall deliver the following to the Collateral Agent: 
 (i) the Chattel Paper Original, if any, of such replacement Lease (and any related Intermediate Lease); 
 (ii) a notice of assignment substantially in the form attached hereto as Exhibit F-1 (a “Lessee Notice”) and (to the extent required under the Express Perfection Requirements) an
acknowledgment from the Lessee substantially in the form attached hereto as Exhibit F-2 (a “Lessee Acknowledgment”), or such forms of such notices as may be pre-agreed in the relevant Lease (or are otherwise acceptable to the
Collateral Agent), addressed to, or for the benefit of, the Collateral Agent with respect to such replacement Lease; 
 (iii)
certificates of insurance from qualified brokers of aircraft insurance (or other evidence satisfactory to the Collateral Agent), evidencing all insurance required to be maintained by the applicable Lessee, together with the endorsements required
pursuant to Section 2.17 and Schedule V of this Agreement with respect to such replacement Lease; 
 (iv) promptly and in
any case within 15 Business Days of the effectiveness of the leasing of such Pool Aircraft, a copy of such Lease (and any related Intermediate Lease), and an amended and restated Schedule 3.17(b) to the Credit Agreement incorporating all information
required under such schedule with respect to such replacement Lease (and any related Intermediate Lease); and 
 (v) with
respect to any replacement Lease, copies of such legal opinions with regard to compliance with the registration requirements of the relevant jurisdiction, enforceability of such Lease and such other matters customary for such transactions, in each
case to the extent that receiving such legal opinions is consistent with Leasing Company Practice. 

Section 2.17 Insurance. The relevant Grantor shall maintain, or procure that the relevant Lessee maintains,
hull and third party liability insurance policies, maintained with insurers or reinsured with reinsurers of recognized responsibility or pursuant to governmental indemnities, in respect of each Pool Aircraft in accordance with the terms of
Schedule V hereto. 

  
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 Section 2.18 As to Irish Law. 

(a) Notwithstanding anything to the contrary contained in this Agreement and in addition to and without prejudice to any other rights or
power of the Collateral Agent under this Agreement or under general law in any relevant jurisdiction, at any time that the Collateral Agent’s remedies with respect to the Collateral shall become exercisable, the Collateral Agent shall be
entitled to appoint a receiver under this Agreement or under the Land and Conveyancing Law Reform Act 2009 of Ireland (as amended and as the same may be amended, modified or replaced from time to time, the “2009 Act”) and such
receiver shall have all such powers, rights and authority conferred under the 2009 Act, this Agreement and otherwise under the laws of Ireland without any limitation or restriction imposed by the 2009 Act, including, without limitation, the
restrictions contained in sections 108(1), 108(4) and 108(7) (Appointment of a Receiver) of the 2009 Act, or otherwise under the laws of Ireland which may be excluded or removed. 

(b) Without prejudice to the foregoing above: 
 (i) The provisions of section 109 (Application of money received) of the 2009 Act shall not apply to a receiver appointed under the 2009 Act. 

(ii) The provisions of section 97 of the 2009 Act (Taking possession), section 98 (Abandoned property), section 99(1) (Mortgagee in
possession) and section 101 (Applications under sections 97 and 100) shall not apply to a receiver appointed under the 2009 Act. 
 (iii) At any time after the security constituted by this Agreement has become enforceable and a receiver has been appointed under the 2009 Act: 

(A) the statutory power of sale conferred by section 100 (Power of sale) of the 2009 Act shall apply free from
restrictions contained in section 100(1), (2), (3) and (4) and without the requirement to serve notice (as provided for in section 100(1)); and 
 (B) the incidental powers of sale conferred by section 102 (Incidental powers) will immediately arise and be exercisable by the Collateral Agent and/or any receiver appointed under the 2009 Act (as
appropriate). 

  
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 (b) The foregoing powers of appointment of a receiver are in addition to and not to the
prejudice of all statutory and other powers of the Collateral Agent under the 2009 Act (as varied or disapplied herein) or otherwise, and such powers will be and remain exercisable by the Collateral Agent in respect of any part of the Collateral in
respect of which no appointment of a receiver by the Collateral Agent is for the time being subsisting, notwithstanding that an appointment shall have subsisted and been withdrawn in respect of that part of the Collateral or shall be subsisting in
respect of any other part of the Collateral. 
 (c) No purchaser or other Person will be bound or concerned to see or enquire
whether the right of the Collateral Agent or any receiver appointed by the Collateral Agent to exercise any of the powers conferred by this Agreement has arisen or not or be concerned with notice to the contrary or with the propriety of the exercise
or purported exercise of such powers. 
 Section 2.19 Irish Charge Over Shares. Each Grantor
undertakes with the Collateral Agent to enter into an Irish Charge Over Shares in respect of, inter alia, the Equity Interests held by it of any Lessor Subsidiary and any Intermediate Lessee which is incorporated under the laws of Ireland.

 Section 2.20 Bermuda Share Charge. Each Grantor undertakes with the Collateral Agent to enter into
a Bermuda Share Charge in respect of, inter alia, the Equity Interest held by it of any Lessor Subsidiary and any Intermediate Lessee which is incorporated under the laws of Bermuda. 

Section 2.21 Australian Share Charge. Each Grantor undertakes with the Collateral Agent to enter into an
Australian Share Charge in respect of, inter alia, the Equity Interest held by it of any Lessor Subsidiary and any Intermediate Lessee which is incorporated under the laws of Australia. 

Section 2.22 Other Jurisdiction Share Charge. Each Grantor undertakes with the Collateral Agent to enter into
an a charge, pledge or equivalent security agreement, in respect of, inter alia, the Equity Interest held by it of any Lessor Subsidiary and any Intermediate Lessee which is incorporated or organized under the laws of any other acceptable
jurisdiction (permitted in accordance with the Credit Agreement). 
 Section 2.23 Investment of Security
Funds. Any monies deposited in the LTV Securities Account shall, until released to the Borrower pursuant to Sections 2.03(c) or 2.12 of the Credit Agreement or applied as provided herein, be invested by the Collateral Agent at the written
authorization and direction of the Borrower (except when an Event of Default has occurred and is continuing or when the Borrower fails to give the Collateral Agent such written authorization and direction, during which time the Collateral Agent
shall invest such funds in accordance with its automated cash investment system) from time to time at the sole expense and risk of the Borrower in Investment Securities. All Investment Securities held by the Securities Intermediary shall either be
(a) registered in the name of, payable to the order of, or specially endorsed to, the Securities Intermediary or (b) held in an Eligible Account. Neither the Collateral Agent nor the Securities Intermediary shall be liable for any loss
relating to any Investment Security made pursuant to this Section 2.23. The Borrower will promptly pay to the Collateral Agent, on demand, the amount of any loss (net of any gains, including interest received) realized as the result of any such
investment (together with any fees, commissions and other expenses, if any, incurred in connection with such investment). 

  
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 Section 2.24 Covenant Regarding Control. No Grantor shall cause
nor permit any Person other than the Collateral Agent to have “control” (as defined in Section 8-106 of the UCC) of any Securities Account, including, without limitation, the LTV Securities Account. 

Section 2.25 Security Documents. Inconsistencies between this Agreement and any other Security
Document shall be reconciled so that terms and conditions in one agreement but not in the other are deemed to be supplementary, and not inconsistent, terms and conditions; provided, however, that in the event of a direct irreconcilable
conflict between this Agreement and any other Security Document, this Agreement shall control unless the term creating such conflict is a term that is mandatorily required by the laws of the applicable jurisdiction of the governing law of the
relevant other Security Document in order for the Collateral Agent or any other Secured Party to enforce the term of such other Security Document, in which case such term shall prevail in connection with enforcement of remedies thereunder in
such jurisdiction; provided, further, however, that in any case, proceeds from the enforcement of remedies against Collateral under any Loan Document, including any Security Document, shall be applied and distributed as set
forth herein. 
 ARTICLE III 
 REMEDIES 
 Section 3.01 Remedies. Notwithstanding
anything herein or in any other Loan Document to the contrary, if any Event of Default shall have occurred and be continuing, and in each case subject to the quiet enjoyment rights of the applicable Lessee of any Pool Aircraft: 

(a) The Collateral Agent may exercise in respect of the Collateral, in addition to other rights and remedies provided for herein
(including, for the avoidance of doubt, the rights and remedies of the Collateral Agent provided for in Section 2.10), all of the rights and remedies of a secured party upon default under the UCC (whether or not the UCC applies to the affected
Collateral) and all of the rights and remedies under applicable law and also may (i) require any Grantor to, and such Grantor hereby agrees that it shall at its expense and upon request of the Collateral Agent forthwith, assemble all or any
part of the Collateral as directed by the Collateral Agent and make it available to the Collateral Agent at a place to be designated by the Collateral Agent that is reasonably convenient to both parties and (ii) without notice except as
specified below, sell or cause the sale of the Collateral or any part thereof in one or more parcels at public or private sale, at any of the Collateral Agent’s offices or elsewhere, for cash, on credit or for future delivery, and upon such
other terms as the Collateral Agent may deem commercially reasonable. Each Grantor agrees that, to the extent notice of sale shall be required by law, at least ten days’ prior notice to such Grantor of the time and place of any public sale or
the time after which any private sale is to be made shall constitute reasonable notification. The Collateral Agent shall not be obligated to make any sale of Collateral regardless of notice of sale having been given. The Collateral Agent may adjourn
any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned. 

  
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 (b) The Collateral Agent may, in addition to or in connection with any other remedies
available hereunder or under any other applicable law, exercise any and all remedies granted under the Cape Town Convention as it shall determine in its sole discretion. In connection therewith, the parties hereby agree to the extent permitted by
the UCC that (i) Article 9(1) and Article 9(2) of the Convention, wherein the parties may agree or the court may order that any Collateral shall vest in the Collateral Agent in or towards satisfaction of the Secured Obligations, shall not
preclude the Collateral Agent from obtaining title to any Collateral pursuant to any other remedies available under applicable law (including but not limited to Article 9-620 of the UCC); (ii) any surplus of cash or cash proceeds held by the
Collateral Agent and remaining after payment in full of all the Secured Obligations owed to it shall be paid over to the Grantors in accordance with Section 3.02 hereof; and (iii) the Collateral Agent may obtain from any applicable court,
pending final determination of any claim resulting from an Event of Default, speedy relief in the form of any of the orders specified in Article 13 of the Convention and Article X of the Protocol as the Collateral Agent shall determine in its sole
and absolute discretion, subject to any procedural requirements prescribed by applicable laws. 
 (c) All cash proceeds received
by the Collateral Agent in respect of any sale of, collection from, or other realization upon all or any part of the Collateral shall be applied in accordance with Section 3.02. Any sale or sales conducted in accordance with the terms of this
Section 3.01 shall be deemed conclusive and binding on each Grantor and the Secured Parties. 

Section 3.02 Priority of Payments. The Collateral Agent hereby agrees that all cash proceeds received by the
Collateral Agent in respect of any Collateral pursuant to Section 3.01 hereof and any payments by any Grantor to the Collateral Agent following an Event of Default shall be paid by the Collateral Agent in the order of priority set forth below:

 (a) first, to the Collateral Agent for the benefit of the Secured Parties, until payment in full in cash of the
Secured Obligations then outstanding; and 
 (b) second, all remaining amounts to the relevant Grantors or whomsoever may
be lawfully entitled to receive such amounts. 
 ARTICLE IV 

SECURITY INTEREST ABSOLUTE 
 Section 4.01 Security Interest Absolute. A separate action or actions may be brought and prosecuted against each Grantor to enforce this Agreement, irrespective of whether any
action is brought against any other Grantor or whether any other Grantor is 
 joined in any such action or actions. Except as otherwise provided
in the Loan Documents, all rights of the Collateral Agent and the security interests and Liens granted under, and all obligations of each Grantor under, until the Secured Obligations then outstanding are paid in full, this Agreement and each other
Loan Document shall be absolute and unconditional, irrespective of: 

  
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 (a) any lack of validity or enforceability of any Loan Document, Assigned Document or any
other agreement or instrument relating thereto; 
 (b) any change in the time, manner or place of payment of, the security for,
or in any other term of, all or any of the Secured Obligations, or any other amendment or waiver of or any consent to any departure from any Loan Document or Assigned Document or any other agreement or instrument relating thereto; 

(c) any taking, exchange, release or non-perfection of the Collateral or any other collateral or taking, release or amendment or waiver
of or consent to departure from any guaranty, for all or any of the Secured Obligations; 
 (d) any manner of application of
Collateral, or proceeds thereof, to all or any of the Secured Obligations, or any manner of sale or other disposition of any Collateral for all or any of the Secured Obligations or any other assets of the Grantors; 

(e) any change, restructuring or termination of the corporate structure or existence of any Grantor; or 

(f) any other circumstance that might otherwise constitute a defense available to, or a discharge of, any Grantor or a third-party
grantor of a security interest or a Person deemed to be a surety. 
 ARTICLE V 

THE COLLATERAL AGENT 
 The Collateral Agent and the Secured Parties agree among themselves as follows: 

Section 5.01 Authorization and Action. (a) Each Secured Party by its acceptance of the benefits of this
Agreement hereby appoints and authorizes Wells Fargo as the initial Collateral Agent to take such action as trustee on behalf of the Secured Parties and to exercise such powers and discretion under this Agreement and the other Loan Documents as are
specifically delegated to the Collateral Agent by the terms of this Agreement and of the Loan Documents, and no implied duties and covenants shall be deemed to arise against the Collateral Agent. For the avoidance of doubt, each Secured Party by its
acceptance of the benefits of this Agreement hereby requests and instructs the Collateral Agent to enter into all Assigned Lease-related documents and instruments on this date and as may arise from time to time for the purpose of establishing and
maintaining its security interest for itself and for the benefit of the other Secured Parties in respect of any Assigned Lease. 

  
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 (b) The Collateral Agent accepts such appointment and agrees to perform the same but only
upon the terms of this Agreement (including any quiet enjoyment covenants given to the Lessees) and agrees to receive and disburse all moneys received by it in accordance with the terms of this Agreement. The Collateral Agent in its individual
capacity shall not be answerable or accountable under any circumstances, except for its own willful misconduct or gross negligence (or simple negligence in the handling of funds or breach of any of its representations or warranties set forth in this
Agreement) and the Collateral Agent shall not be liable for any action or inaction of any Grantor or any other parties to any of the Loan Documents. 
 Section 5.02 Absence of Duties. The powers conferred on the Collateral Agent under this Agreement with respect to the Collateral are solely to protect its interests in this
Agreement and shall not impose any duty upon it, except as explicitly set forth herein, to exercise any such powers. Except for the safe custody of any Collateral in its possession and the accounting for moneys actually received by it under this
Agreement, the Collateral Agent shall not have any duty as to any Collateral, as to ascertaining or taking action with respect to calls, conversions, exchanges, maturities, tenders or other matters relative to any Collateral, whether or not any
Secured Party has or is deemed to have knowledge of such matters, or as to the taking of any necessary steps to preserve or perfect rights against any parties or any other rights pertaining to any Collateral. The Collateral Agent shall not have any
duty to ascertain or inquire as to the performance or observance of any covenants, conditions or agreements on the part of any Grantor or Lessee. 
 Section 5.03 Representations or Warranties. The Collateral Agent shall not make nor shall it be deemed to have made any representations or warranties as to the validity, legality
or enforceability of this Agreement, any other Loan Document or any other document or instrument or as to the correctness of any statement contained in any thereof, or as to the validity or sufficiency of any of the pledge and security interests
granted hereby, except that the Collateral Agent in its individual capacity hereby represents and warrants (a) that each such specified document to which it is a party has been or will be duly executed and delivered by one of its officers who
is and will at such time be duly authorized to execute and deliver such document on its behalf, and (b) this Agreement is or will be the legal, valid and binding obligation of the Collateral Agent in its individual capacity, enforceable against
the Collateral Agent in its individual capacity in accordance with its terms, subject to the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar law affecting creditors’ rights generally. 

Section 5.04 Reliance; Agents; Advice of Counsel. (a) The Collateral Agent shall not incur any liability
to anyone as a result of acting upon any signature, instrument, notice, resolution, request, consent, order, certificate, report, opinion, bond or other document or paper believed by it to be genuine and believed by it to be signed by the proper
party or parties. The Collateral Agent may accept a copy of a resolution of the board or other governing body of any party to this Agreement or any Loan Document, certified by the Secretary or an Assistant Secretary thereof or other duly authorized
Person of such party as duly adopted and in full force and effect, as conclusive evidence that such resolution has been duly adopted by said board or other governing body and that the same is in full force and effect. As to any fact or matter the
manner of ascertainment of which is not specifically described in this Agreement, the Collateral Agent shall be entitled to receive and may for all purposes hereof conclusively rely, and shall be fully protected in acting or refraining from acting,
on a certificate, signed by an officer of any duly authorized Person, as to such fact or matter, and such certificate shall constitute full protection to the Collateral Agent for any action taken or omitted to be taken by them in good faith in
reliance thereon. The Collateral Agent shall assume, and shall be fully protected in assuming, that each other party to this Agreement is authorized by its constitutional documents to enter into this Agreement and to take all action permitted to be
taken by it pursuant to the provisions of this Agreement, and shall not inquire into the authorization of such party with respect thereto. 

  
 32 

 (b) The Collateral Agent may execute any of its powers hereunder or perform any duties under
this Agreement either directly or by or through agents, including financial advisors, or attorneys or a custodian or nominee, provided, however, that the appointment of any agent shall not relieve the Collateral Agent of its
responsibilities or liabilities hereunder. 
 (c) The Collateral Agent may consult with counsel and any opinion of counsel or
any advice of such counsel shall be full and complete authorization and protection in respect of any action taken or suffered or omitted by it under this Agreement in good faith and in accordance with such advice or opinion of counsel. 

(d) The Collateral Agent shall be under no obligation to exercise any of the rights or powers vested in it by this Agreement, or to
institute, conduct or defend any litigation under this Agreement or in relation hereto, at the request, order or direction of any of the Secured Parties, pursuant to the provisions of this Agreement, unless such Secured Party shall have offered to
the Collateral Agent reasonable security or indemnity reasonably satisfactory to it against the costs, expenses and liabilities which may be incurred therein or thereby. 
 (e) The Collateral Agent shall not be required to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder, or in the exercise of any of
its rights or powers, if there is reasonable ground for believing that the repayment of such funds or indemnity reasonably satisfactory to it against such risk or liability is not reasonably assured to it, and none of the provisions contained in
this Agreement shall in any event require the Collateral Agent to perform, or be responsible or liable for the manner of performance of, any obligations of any Grantor under any of the Loan Documents. 

(f) If the Collateral Agent incurs expenses or renders services in connection with an exercise of remedies specified in
Section 3.01, such expenses (including the fees and expenses of its counsel) and the compensation for such services are intended to constitute expenses of administration under any bankruptcy law or law relating to creditors’ rights
generally. 

  
 33 

 (g) The Collateral Agent shall not be charged with knowledge of an Event of Default unless
the Collateral Agent obtains actual knowledge of such event or the Collateral Agent receives written notice of such event from any of the Secured Parties. 
 (h) The Collateral Agent shall not have any duty to monitor the performance of any Grantor or any other party to the Loan Documents, nor shall the Collateral Agent have any liability in connection with
the malfeasance or nonfeasance by such parties. The Collateral Agent shall not have any liability in connection with compliance by any Grantor or any Lessee under a Lease with statutory or regulatory requirements related to the Collateral, any Pool
Aircraft or any Lease. The Collateral Agent shall not make or be deemed to have made any representations or warranties with respect to the Collateral, any Pool Aircraft or any Lease or the validity or sufficiency of any assignment or other
disposition of the Collateral, any Pool Aircraft or any Lease. 
 Section 5.05 Cape Town Convention.
The Collateral Agent, during the term of this Agreement, shall establish and maintain a valid and existing account as a Transacting User Entity with the International Registry and appoint an Administrator and/or a Professional User Entity to make
registrations in regard to the Collateral as required by this Agreement. 
 Section 5.06 No Individual
Liability. The Collateral Agent shall not have any individual liability in respect of all or any part of the Secured Obligations, and all shall look, subject to the lien and priorities of payment provided herein and in the Loan Documents, only
to the property of the Grantors (to the extent provided in the Loan Documents) for payment or satisfaction of the Secured Obligations pursuant to this Agreement and the other Loan Documents. 

ARTICLE VI 

SUCCESSOR COLLATERAL AGENT 
 Section 6.01 Resignation and Removal of the Collateral Agent. The Collateral Agent may resign at any time without cause by giving at least 30 days’ prior written notice to
FLL and the Lenders. The Required Lenders may at any time remove the Collateral Agent without cause by an instrument in writing delivered to FLL, the Lenders and the Collateral Agent. No resignation by or removal of the Collateral Agent pursuant to
this Section 6.01 shall become effective prior to the date of appointment by the Required Lenders of a successor Collateral Agent and the acceptance of such appointment by such successor Collateral Agent. 

Section 6.02 Appointment of Successor. (a) In the case of the resignation or removal of the Collateral
Agent, the Required Lenders shall promptly appoint a successor Collateral Agent. So long as no Event of Default shall have occurred and be continuing, any such successor Collateral Agent shall as a condition to its appointment be reasonably
acceptable to FLL. If a successor Collateral Agent shall not have been appointed and accepted its appointment hereunder within 60 days after the Collateral Agent gives notice of resignation, the retiring Collateral Agent, the Administrative Agent or
the Required Lenders may petition any court of competent jurisdiction for the appointment of a successor Collateral Agent. Any successor Collateral Agent so appointed by such court shall immediately and without further act be superseded by any
successor Collateral Agent appointed as provided in the first sentence of this paragraph within one year from the date of the appointment by such court. 

  
 34 

 (b) Any successor Collateral Agent shall execute and deliver to the relevant Secured Parties
and the Borrower an instrument accepting such appointment. Upon the acceptance of any appointment as Collateral Agent hereunder, a successor Collateral Agent, upon the execution and filing or recording of such financing statements, or amendments
thereto, and such amendments or supplements to this Agreement, and such other instruments or notices, as may be necessary, or as the Administrative Agent may reasonably request in order to continue the perfection (if any) of the Liens granted or
purported to be granted hereby, shall succeed to and become vested with all the rights, powers, discretion, privileges and duties of the retiring Collateral Agent, and the retiring Collateral Agent shall be discharged from its duties and obligations
under this Agreement and the other Loan Documents. The retiring Collateral Agent shall take all steps necessary to transfer all Collateral in its possession and all its control over the Collateral to the successor Collateral Agent within ten
(10) Business Days of the successor Collateral Agent accepting its appointment. All actions under this paragraph (b) shall be at the expense of FLL; provided that if a successor Collateral Agent has been appointed as a result of the
circumstances described in Section 6.02(d), any actions under this paragraph (b) as relating to such appointment shall be at the expense of the successor Collateral Agent. 

(c) The Collateral Agent shall be an Eligible Institution, if there be such an institution willing, able and legally qualified to perform
the duties of the Collateral Agent hereunder and unless such institution is an Affiliate of a Secured Party or an Event of Default has occurred and is continuing, reasonably acceptable to FLL. 

(d) Any corporation into which the Collateral Agent may be merged or converted or with which it may be consolidated, or any corporation
resulting from any merger, conversion or consolidation to which the Collateral Agent shall be a party, or any corporation to which substantially all the business of the Collateral Agent may be transferred, shall be the Collateral Agent under this
Agreement without further act. 
 ARTICLE VII 
 INDEMNITY AND EXPENSES 
 Section 7.01 Indemnity.
(a) Each of the Grantors shall indemnify, defend and hold harmless the Collateral Agent (and its officers, directors, employees, representatives and agents) from and against, any loss, liability or expense (including reasonable legal fees and
expenses) incurred by it without negligence or bad faith on its part in connection with the acceptance or administration of this Agreement and its duties hereunder, including the costs and expenses of defending itself against any claim or liability
and of complying with any process served upon it or any of its officers in connection with the exercise or performance of any of its powers or duties hereunder and hold it harmless against, any loss, liability or reasonable expense incurred without
negligence or bad faith on its part. The Collateral Agent (i) must provide reasonably prompt notice to the applicable Grantor of any claim for which indemnification is sought, provided that the failure to provide notice shall only limit
the indemnification provided hereby to the extent of any incremental expense or actual prejudice as a result of such failure; and (ii) must not make any admissions of liability or incur any significant expenses after receiving actual notice of
the claim or agree to any settlement without the written consent of the applicable Grantor, which consent shall not be unreasonably withheld. No Grantor shall be required to reimburse any expense or indemnity against any loss or liability incurred
by the Collateral Agent through negligence or bad faith. 

  
 35 

 Each Grantor, as applicable, may, in its sole discretion, and at its expense, control the
defense of the claim including, without limitation, designating counsel for the Collateral Agent and controlling all negotiations, litigation, arbitration, settlements, compromises and appeals of any claim; provided that (i) the
applicable Grantor may not agree to any settlement involving any indemnified person that contains any element other than the payment of money and complete indemnification of the indemnified person without the prior written consent of the affected
indemnified person, (ii) the applicable Grantor shall engage and pay the expenses of separate counsel for the indemnified person to the extent that the interests of the Collateral Agent are in conflict with those of such Grantor and
(iii) the indemnified person shall have the right to approve the counsel designated by such Grantor which consent shall not be unreasonably withheld. 
 (b) Each Grantor shall within ten (10) Business Days after demand pay to the Collateral Agent the amount of any and all reasonable expenses, including the reasonable fees and expenses of its counsel
and of any experts and agents, that the Collateral Agent may incur in connection with (i) the administration of this Agreement (in accordance with fee arrangements agreed between the Collateral Agent and FLL), (ii) the custody,
preservation, use or operation of, or the sale of, collection from or other realization upon, any of the Collateral, (iii) the exercise or enforcement of any of the rights of the Collateral Agent or any other Secured Party against such Grantor
hereunder or (iv) the failure by any Grantor to perform or observe any of the provisions hereof. 

Section 7.02 Secured Parties’ Indemnity. (a) The Collateral Agent shall be entitled to be indemnified
(subject to the limitations and requirements described in Section 7.01 mutatis mutandis) by the Lenders to the sole satisfaction of the Collateral Agent before proceeding to exercise any right or power under this Agreement at the request
or direction of the Administrative Agent. 
 (b) In order to recover under clause (a) above, the Collateral Agent:
(i) must provide reasonably prompt notice to the Administrative Agent of any claim for which indemnification is sought, provided that the failure to provide notice shall only limit the indemnification provided hereby to the extent of any
incremental expense or actual prejudice as a result of such failure; and (ii) must not make any admissions of liability or incur any significant expenses after receiving actual notice of the claim or agree to any settlement without the written
consent of the Administrative Agent which consent shall not be unreasonably withheld. 

  
 36 

 (c) The Administrative Agent may, in its sole discretion, and at its expense, control the
defense of the claim including, without limitation, designating counsel for the Collateral Agent and controlling all negotiations, litigation, arbitration, settlements, compromises and appeals of any claim; provided that (i) the
Administrative Agent may not agree to any settlement involving any indemnified person that contains any element other than the payment of money and complete indemnification of the indemnified person without the prior written consent of the affected
indemnified person, (ii) the Administrative Agent shall engage and pay the expenses of separate counsel for the indemnified person to the extent that the interests of the Collateral Agent are in conflict with those of the Administrative Agent
and (iii) the indemnified person shall have the right to approve the counsel designated by the Administrative Agent which consent shall not be unreasonably withheld. 
 (d) The provisions of Section 7.01 and this Section 7.02 shall survive the termination of this Agreement or the earlier resignation or removal of the Collateral Agent. 

Section 7.03 No Compensation from Secured Parties. The Collateral Agent agrees that it shall have no right
against the Secured Parties for any fee as compensation for its services in such capacity. 
 Section 7.04
Collateral Agent Fees. In consideration of the Collateral Agent’s performance of the services provided for under this Agreement, the Grantors shall pay to the Collateral Agent an annual fee set forth under a separate agreement between
FLL and the Collateral Agent and shall reimburse the Collateral Agent for reasonable expenses incurred including those associated with the International Registry. 
 ARTICLE VIII 
 MISCELLANEOUS 

Section 8.01 Amendments; Waivers; Etc. (a) No amendment or waiver of any provision of this Agreement, and
no consent to any departure by any party from the provisions of this Agreement, shall in any event be effective unless the same shall be in writing and signed by the Administrative Agent and each party hereto. No failure on the part of the
Collateral Agent to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any such right preclude any other or further exercise thereof or the exercise of any other
right. The Collateral Agent may, but shall have no obligation to, execute and deliver any amendment or modification which would affect its duties, powers, rights, immunities or indemnities hereunder. 

(b) Upon the execution and delivery by any Person of a Grantor Supplement, (i) such Person shall be referred to as an
“Additional Grantor” and shall be and become a Grantor hereunder, and each reference in this Agreement to “Grantor” shall also mean and be a reference to such Additional Grantor, (ii) Annexes I, II, III and IV attached to
each Grantor Supplement shall be incorporated into, become a part of and supplement Schedules I, II, III and IV, respectively, and the Collateral Agent may attach such Annexes as supplements to such Schedules; and each reference to such Schedules
shall be a reference to such Schedules as so supplemented and (iii) such Additional Grantor shall be a Grantor for all purposes under this Agreement and shall be bound by the obligations of the Grantors hereunder. 

  
 37 

 (c) Upon the execution and delivery by a Grantor of a Collateral Supplement, Annexes I and
II to each Collateral Supplement shall be incorporated into, become a part of and supplement Schedules I and II, respectively, and the Collateral Agent may attach such Annexes as supplements to such Schedules; and each reference to such Schedules
shall be a reference to such Schedules as so supplemented. 
 Section 8.02 Addresses for Notices. All
notices and other communications provided for hereunder shall be in writing (including telecopier) and telecopied or delivered to the intended recipient at its address specified, as follows: 

For each Grantor for whom Wells Fargo Bank Northwest, National Association acts as Owner Trustee: 

Wells Fargo Bank Northwest, National Association 
 260 North Charles Lindbergh Drive 
 MAC U1240-026 

Salt Lake City, Utah 84116 
 USA 
 Tel: +1 (801) 246-6000 

Fax: +1 (801) 246-7142 
 Attention: Corporate Trust Lease Group 
 with a copy to: 

BBAM LLC 
 50
California Street 
 14th Floor 
 San Francisco, CA 94111 
 USA 

Attention: General Counsel 
 Fax: +1 415 618-3337 
 For each Grantor for whom Wilmington Trust Company acts as
Owner Trustee: 
 Wilmington Trust Company 
 1100 North Market Street 
 Wilmington, Delaware 19890-0001 

USA 
 Fax: +1
(302) 636-4140 
 Attention: Corporate Trust Administration 

  
 38 

 with a copy to: 
 BBAM LLC 
 50 California Street 

14th Floor 

San Francisco, CA 94111 
 USA 
 Attention: General Counsel 

Fax: +1 415 618-3337 
 For each other Grantor: 
 c/o Fly Leasing Limited 

West Pier 
 Dun
Laoghaire 
 Co. Dublin, Ireland 
 Attention: General Counsel 
 Fax: +353-1-231-1901 

with a copy to: 
 BBAM LLC 
 50 California Street 

14th Floor 

San Francisco, CA 94111 
 USA 
 Attention: General Counsel 

Fax: +1 415 618-3337 
 For the Collateral Agent: 
 Wells Fargo Bank Northwest, National Association

 260 North Charles Lindbergh Drive 
 MAC U1240-026 
 Salt Lake City, Utah 84116 

USA 
 Tel: +1
(801) 246-6000 
 Fax: +1 (801) 246-7142 
 Attention: Corporate Trust Lease Group 
 or, as to each party, at such other address as shall be
designated by such party in a written notice to each other party complying as to delivery with the terms of this Section 8.02. Each such notice shall be effective (a) on the date personally delivered to an authorized officer of the party
to which sent, or (b) on the date transmitted by legible telecopier transmission with a confirmation of receipt. 

  
 39 

 Section 8.03 No Waiver; Remedies. No failure on the part of the
Collateral Agent to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right hereunder preclude any other or further exercise thereof or the exercise of any
other right. The remedies herein provided are cumulative and not exclusive of any remedies provided by law. 

Section 8.04 Severability. If any provision of this Agreement shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected or impaired. 

Section 8.05 Continuing Security Interest; Assignments. Subject to Section 8.06, this Agreement shall
create a continuing security interest in the Collateral and shall (a) remain in full force and effect until the earlier of the payment in full in cash of the Secured Obligations then outstanding to the Secured Parties, (b) be binding upon
each Grantor, its successors and assigns and (c) inure, together with the rights and remedies of the Collateral Agent hereunder, to the benefit of the Secured Parties and their respective successors, permitted transferees and permitted assigns.
Without limiting the generality of the foregoing subsection (c), any Secured Party may assign or otherwise transfer all or any portion of its rights and obligations under any Loan Document to which it is a party in accordance with the terms thereof
to any other permitted Person or entity, and such other permitted Person or entity shall thereupon become vested with all the rights in respect thereof granted to such Secured Party herein or otherwise. 

Section 8.06 Release and Termination. (a) Upon any sale, lease, transfer or other disposition or removal
from the Designated Pool of any item of Collateral in accordance with the terms of the Loan Documents, such item of Collateral will be deemed irrevocably and unconditionally released from the Lien hereof, and the Collateral Agent will, at such
Grantor’s expense, execute and deliver to the Grantor of such item of Collateral such documents as such Grantor shall reasonably request and provide to the Collateral Agent to evidence the release of such item of Collateral from the assignment
and security interest granted hereby, and to the extent that (A) the Collateral Agent’s consent is required for any deregistration of the interests in such released Collateral from the International Registry or other registry or
(B) the Collateral Agent is required to initiate any such deregistration, the Collateral Agent shall ensure that such consent or such initiation of such deregistration is effected. Any amounts released from the LTV Securities Account by the
Collateral Agent pursuant to a Release Request or Section 2.12 of the Credit Agreement, in each case in accordance with the terms and conditions of the Loan Documents, without further act, shall be deemed irrevocably and unconditionally
released from the Lien hereof. 

  
 40 

 (b) Upon the payment in full in cash of the Secured Obligations then outstanding, the
pledge, assignment and security interest granted by Section 2.01 hereof shall terminate, the Collateral Agent shall cease to be a party to this agreement, and all provisions of this Agreement (except for this Section 8.06(b)) relating to
the Secured Obligations, the Secured Parties or the Collateral Agent shall cease to be of any effect insofar as they relate to the Secured Obligations, the Secured Parties or the Collateral Agent. Upon any such termination, the Collateral Agent
will, at the relevant Grantor’s expense, execute and deliver to each relevant Grantor such documents as such Grantor shall prepare and reasonably request to evidence such termination. 

(c) If, prior to the termination of this Agreement, the Collateral Agent ceases to be the Collateral Agent in accordance with the
definition of “Collateral Agent” in Section 1.01, all certificates, instruments or other documents being held by the Collateral Agent at such time shall, within five (5) Business Days from the date on which it ceases to be the
Collateral Agent, be delivered to the successor Collateral Agent. 
 Section 8.07 Currency Conversion.
If any amount is received or recovered by the Collateral Agent in a currency (the “Received Currency”) other than the currency in which such amount was expressed to be payable (the “Agreed Currency”), then the
amount in the Received Currency actually received or recovered by the Collateral Agent, to the extent permitted by law, shall only constitute a discharge of the relevant Grantor to the extent of the amount of the Agreed Currency which the Collateral
Agent was or would have been able in accordance with its or his normal procedures to purchase on the date of actual receipt or recovery (or, if that is not practicable, on the next date on which it is so practicable), and, if the amount of the
Agreed Currency which the Collateral Agent is or would have been so able to purchase is less than the amount of the Agreed Currency which was originally payable by the relevant Grantor, such Grantor shall pay to the Collateral Agent for the benefit
of the Secured Parties such amount as it shall determine to be necessary to indemnify the Collateral Agent and the Secured Parties against any loss sustained by it as a result (including the cost of making any such purchase and any premiums,
commissions or other charges paid or incurred in connection therewith) and so that, to the extent permitted by law, (i) such indemnity shall constitute a separate and independent obligation of each Grantor distinct from its obligation to
discharge the amount which was originally payable by such Grantor and (ii) shall give rise to a separate and independent cause of action and apply irrespective of any indulgence granted by the Collateral Agent and continue in full force and
effect notwithstanding any judgment, order, claim or proof for a liquidated amount in respect of the amount originally payable by any Grantor or any judgment or order and no proof or evidence of any actual loss shall be required. 

Section 8.08 Governing Law. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF
THE STATE OF NEW YORK. 

  
 41 

 Section 8.09 Jurisdiction; Consent to Service of Process.
(a) To the extent permitted by applicable law, each party hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction of any New York State court or federal court of the United States of America
sitting in New York County, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement or the other Loan Documents, or for recognition or enforcement of any judgment, and each of the parties
hereto hereby irrevocably and unconditionally agrees that all claims in respect of 
 any such action or proceeding may be heard and determined
in such New York State or, to the extent permitted by law, in such federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law. Nothing in this Agreement shall affect any right that any Secured Party may otherwise have to bring any action or proceeding relating to this Agreement or the other Loan Documents against any Borrower
Party or its properties in the courts of any jurisdiction. 
 (b) Each party hereby irrevocably and unconditionally waives, to
the fullest extent it may legally and effectively do so, any objection that it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement or the other Loan Documents in any New
York State or federal court. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court. 

(c) Each party to this Agreement irrevocably consents to service of process in the manner provided for notices in Section 8.02.
Nothing in this Agreement will affect the right of any party to this Agreement to serve process in any other manner permitted by law. 
 Section 8.10 Counterparts. This Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original,
but all of which when taken together shall constitute a single contract. This Agreement and the other Loan Documents constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements
and understandings, oral or written, relating to the subject matter hereof. This Agreement (i) will become effective when the Lenders shall have received counterparts hereof that, when taken together, bear the signatures of each of the other
parties hereto and (ii) thereafter will be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. Delivery of an executed counterpart of a signature page of this Agreement by telecopy will be
effective as delivery of a manually executed counterpart of this Agreement. 
 Section 8.11 Table of
Contents, Headings, Etc. The Table of Contents and headings of the Articles and Sections of this Agreement have been inserted for convenience of reference only, are not to be considered a part hereof and shall in no way modify or restrict any of
the terms and provisions hereof. 
 Section 8.12 Non-Invasive Provisions. (a) Notwithstanding any
other provision of the Loan Documents, the Collateral Agent agrees that, so long as no Event of Default shall have occurred and be continuing, not to take any action or cause to be taken any action, or permit any person claiming by, through or on
behalf of it to take any action or cause any action, that would interfere with the possession, use, operation and quiet enjoyment of and other rights with respect to any Pool Aircraft or Collateral related thereto and all rents, revenues, profits
and income therefrom, including, the right to enforce manufacturers’ warranties, the right to apply or obtain insurance proceeds for damage to the Pool Aircraft to the repair of the Pool Aircraft and the right to engage in pooling, leasing and
similar actions, in each case in accordance with the terms of this Agreement. 

  
 42 

 (b) Notwithstanding any other provision of the Loan Documents, the Collateral Agent agrees
that, so long as no “Event of Default” (or similar term) under a Lease (as defined in such Lease) shall have occurred and be continuing, not to take any action or cause to be taken any action, or permit any person claiming by, through or
on behalf of it to take any action or cause any action, that would interfere with the possession, use, operation and quiet enjoyment of and other rights of the Lessee with respect to any Pool Aircraft or Collateral related thereto and all rents,
revenues, profits and income therefrom, including, the right to enforce manufacturers’ warranties, the right to apply or obtain insurance proceeds for damage to the Pool Aircraft to the repair of the Pool Aircraft and the right to engage in
pooling, leasing and similar actions, in each case in accordance with the terms of such Lease. 
 (c) The Collateral Agent
agrees to release any Lien the Collateral Agent may have upon any Engine upon (i) a Grantor providing the Collateral Agent with written notice of a transfer thereof promptly after receipt of a notice thereof from the relevant Lessee and with a
copy of the bill of sale or other instrument evidencing the transfer of title of such replacement Engine to a Grantor, (ii) in the case of the transfer of title to an Engine initiated by a Grantor, the Grantor providing the Collateral Agent
with a certificate of such transfer and a copy of the bill of sale or other instrument evidencing the transfer of title of a replacement Engine to a Grantor, or (iii) upon the total loss payment or Loan repayment being received (or replacement
aircraft being provided) in a case where the Airframe, but not such Engine, was the subject of a total loss; provided that, for the avoidance of doubt, the Collateral Agent shall not release any Lien upon an Engine that is not replaced by a
Grantor or a Lessee, unless such Engine is associated with an aircraft that was subject to a total loss or otherwise removed from the Designated Pool. The Borrower shall at the request of the Collateral Agent execute a supplement to this Agreement
to evidence that any such replacement Engine has become subject to the Lien of this Agreement and the Collateral Agent shall, at the request of the Borrower, execute a supplement to this Agreement to evidence the release of the applicable Engine
from the Lien of the Collateral Agent. 
 (d) The Lenders and the Collateral Agent agree that they will not claim, and upon the
request of the relevant Grantor, the Collateral Agent will confirm in writing that it does not claim, any right, title or interest in any engine or part (including any audio visual, telephonic, entertainment or similar equipment) that is installed
on a Pool Aircraft which does not constitute an “engine” or “part” as defined in the applicable Lease. 

(e) For the avoidance of doubt, the Collateral Agent agrees that the relevant Grantor may from time to time lease out an engine that is
part of a Pool Aircraft or lease in an engine that is not part of a Pool Aircraft as it determines in accordance with Leasing Company Practice. 

  
 43 

 Section 8.13 Limited Recourse. To the extent permitted by
applicable law, no recourse under any obligation, covenant or agreement of any party contained in this Agreement shall be had against any shareholder (not including any Grantor as a shareholder 

of any other Grantor hereunder), officer or director of the relevant party as such, by the enforcement of any assessment or by any proceeding, by virtue
of any statute or otherwise; it being expressly agreed and understood that this Agreement is a corporate obligation of the relevant party and no personal liability shall attach to or be incurred by the shareholders (not including any Grantor as a
shareholder of any other Grantor hereunder), officers or directors of the relevant party as such, or any of them under or by reason of any of the obligations, covenants or agreements of such relevant party contained in this Agreement, or implied
therefrom, and that any and all personal liability for breaches by such party of any of such obligations, covenants or agreements, either at law or by statute or constitution, of every such shareholder (not including any Grantor as a shareholder of
any other Grantor hereunder), officer or director is hereby expressly waived by the other parties as a condition of and consideration for the execution of this Agreement. 
 [The Remainder of this Page is Intentionally Left Blank] 

  
 44 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and
delivered by its representative or officer thereunto duly authorized as of the date first above written. In the case of B&B Air Acquisition 34953 Leasing Limited, B&B Air Acquisition 3151 Leasing Limited, B&B Air Acquisition 403 Leasing
Limited, B&B Air Acquisition 34956 Leasing Limited and B&B Air Acquisition 3237 Leasing Limited, such parties intend that this Agreement be executed and delivered as a Deed and have caused this Agreement to be so executed and delivered.

  

					
		
	FLY FUNDING II S.À R.L.	 	
			
	 By:
	 	 	 	 
		 	Name:	 	
		 	Title:	 	
		
	FLY LEASING LIMITED	 	
			
	By:	 	 	 	 
		 	Name:	 	
		 	Title:	 	
		
	FLY PERIDOT HOLDINGS LIMITED	 	
			
	By:	 	 	 	 
		 	Name:	 	
		 	Title:	 	
		
	BABCOCK & BROWN AIR ACQUISITION I LIMITED	 	
			
	By:	 	 	 	 
		 	Name:	 	
		 	Title:	 	
			
		 	The Initial Intermediate Lessees	 	
		
	SIGNED AND DELIVERED AS A DEED	 	)
	by	 		 	)
		 		 	)
		 	 	 	)

  
 45 

 
					
	as attorney for B&B AIR ACQUISITION	 	
	3237 LEASING LIMITED	 	
		
	in the presence of:	 	
			
	 Signature of Witness:
	 	 	 	 
	 Name of Witness:
	 		 	
	 Address of Witness:
	 		 	
	 Occupation of Witness:
	 		 	
		
	SIGNED AND DELIVERED AS A DEED	 	)
	by	 		 	)
		 		 	)
		 		 	)
	 	 	)
	as attorney for B&B AIR ACQUISITION	 	
	34953 LEASING LIMITED	 	
		
	in the presence of:	 	
			
	 Signature of Witness:
	 	 	 	 
	 Name of Witness:
	 	
	 Address of Witness:
	 	
	 Occupation of Witness:
	 	
		
	SIGNED AND DELIVERED AS A DEED	 	)
	by	 		 	)
		 		 	)
		 		 	)
	 	 	)
	as attorney for B&B AIR ACQUISITION	 	
	34956 LEASING LIMITED	 	
		
	in the presence of:	 	
			
	 Signature of Witness:
	 	 	 	 
	 Name of Witness:
	 	
	 Address of Witness:
	 	
	 Occupation of Witness:
	 	

  
 46 

 
					
		
	SIGNED AND DELIVERED AS A DEED	 	)
	by	 		 	)
		 		 	)
		 		 	)
	 	 	)
	as attorney for B&B AIR ACQUISITION	 	
	403 LEASING LIMITED	 	
		
	in the presence of:	 	
			
	 Signature of Witness:
	 	 	 	 
	 Name of Witness:
	 	
	 Address of Witness:
	 	
	 Occupation of Witness:
	 	
		
	SIGNED AND DELIVERED AS A DEED	 	)
	by	 		 	)
		 		 	)
		 		 	)
	 	 	)
	as attorney for B&B AIR ACQUISITION	 	
	3151 LEASING LIMITED	 	
		
	in the presence of:	 	
			
	 Signature of Witness:
	 	 	 	 
	 Name of Witness:
	 	
	 Address of Witness:
	 	
	 Occupation of Witness:
	 	

  

			
	The Initial Lessor Subsidiaries
	
	SPIREDELL TRUST
	
	By:         Wilmington Trust Company, not in its individual capacity but solely as trustee
		
	By:	 	 
		 	Name:
		 	Title:

  
 47 

 
			
	WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION, not in its individual capacity but solely as trustee under the trust agreement (MSN 3237)
		
	By	 	 
	Name:	 	
	Title:	 	
	
	WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION, not in its individual capacity but solely as trustee under the trust agreement (MSN 34953)
		
	By	 	 
	Name:	 	
	Title:	 	
	
	WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION, not in its individual capacity but solely as trustee under the trust agreement (MSN 34956)
		
	By	 	 
	Name:	 	
	Title:	 	
	
	B&B AIR ACQUISITION 403 STATUTORY TRUST
	
	By: Wells Fargo Bank Northwest, National Association, not in its individual capacity but solely as trustee under the trust agreement (MSN 403)
		
	By	 	 
	Name:	 	
	Title:	 	
	
	WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION, not in its individual capacity but solely as trustee under the trust agreement (MSN 3151)
		
	By	 	 
	Name:	 	
	 Title:
	 	

  
 48 

 
			
	B&B AIR ACQUISITION 3417 STATUTORY TRUST
		
	 By:
	 	Wells Fargo Bank Northwest, National
	Association, not in its individual capacity but solely as trustee under the trust agreement (MSN 3417)
		
	 By
	 	 
	 Name:

	 Title:

	
	WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION, not in its individual capacity but solely as trustee under the trust agreement (MSN
1369)
		
	 By
	 	 
	 Name:

	 Title:

	
	WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION, not in its individual capacity but solely as trustee under the trust agreement (MSN
1378)
		
	 By
	 	 
	 Name:

	 Title:

	
	WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION, not in its individual capacity but solely as trustee under the trust agreement (MSN
1391)
		
	 By
	 	 
	 Name:

	 Title:

	
	WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION, not in its individual capacity but solely as trustee under the trust agreement (MSN
1393)
		
	 By
	 	 
	 Name:

	 Title:

  
 49 

 
			
	WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION, not in its individual capacity but solely as trustee under the trust agreement (MSN
24739)
		
	 By
	 	 
	 Name:

	 Title:

	
	WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION, not in its individual capacity but solely as trustee under the trust agreement (MSN
26473)
		
	 By
	 	 
	 Name:

Title:

	
	WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION, not in its individual capacity but solely as trustee under the trust agreement (MSN
29312)
		
	 By
	 	 
	 Name:

Title:

	
	WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION, not in its individual capacity but solely as trustee under the trust agreement (MSN
29644)
		
	 By
	 	 
	 Name:

Title:

	
	WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION, not in its individual capacity but solely as trustee under the trust agreement (MSN
30052)
		
	 By
	 	 
	 Name:

Title:

  
 50 

 
			
	WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION, not in its individual capacity but solely as the Collateral Agent
		
	 By
	 	 
	 Name:
	 	
	 Title:
	 	

  
 51Sale Agreement, dated as of June 14, 2012

 EXHIBIT 10-1 
 SALE AGREEMENT 
 THIS SALE AGREEMENT (“Agreement”) is made
as of June 14, 2012 (the “Effective Date”), between CENTRAL PACIFIC BANK, a Hawaii corporation (the “Seller”), and TNP ACQUISITIONS, LLC, a Delaware limited liability company. 

1. Sale of Property. Seller agrees to sell and Buyer agrees to purchase on the terms stated in this Agreement the following
described property (the “Property”): 
 1.1 Real Property. The leasehold interest under the Lahaina
Gateway Ground Lease dated February 2, 2005, a short form of which is recorded in the Bureau of Conveyances of the State of Hawaii as Document No. 2005-0318882 (the “Ground Lease”), demising Lot 1 of the Hawaii Omori Mauka
Subdivision, containing approximately 11.363 acres, having a tax map designation of TMK (2) 4-5-11-8, located in Lahaina, Maui, Hawaii, together with the improvements, fixtures, easements and other items of real property located on or
appurtenant to such land (the “Real Property”). 
 1.2 Tenant Leases. All existing tenant leases (and
all amendments thereto) affecting portions of the Real Property and binding upon Seller as landlord, together with all security deposits, all advance rents and other advance payments made by tenants under the leases, and all rights of Seller under
the leases (the “Tenant Leases”). 
 1.3 Operating Contracts. To the extent assignable to Buyer, all
contracts, commission agreements, and agreements relating to the upkeep, maintenance, repair or operation of the Real Property, which will extend beyond the Closing Date and which the Buyer agrees, in its sole discretion, to assume (the
“Operating Contracts”). 
 1.4 Personal Property. The permits, reports, applications, plans, schedules
and materials in Seller’s possession or under Seller’s control with respect to the use and development of the Real Property, excluding any such materials which Seller determines in its sole discretion are part of Seller’s loan files
with respect to the Property or are confidential or privileged. 
 1.5 Intangible Property. All assignable development
rights, privileges, entitlements, permits, licenses, certificates, and other governmental approvals, if any, now or hereafter obtained by Seller that pertain to the Real Property (the “Intangible Rights”). 

 2. Purchase Price. Subject to the adjustments and prorations described in this
Agreement, the total purchase price to be paid by Buyer to Seller for the purchase of the Property is the sum of Thirty One Million U.S. Dollars (U.S. $31,000,000) (the “Purchase Price”). The Purchase Price will be paid in the
following manner: 
 2.1 Deposit. 
 (a) Initial Deposit. Within one (2) business days following the parties’ mutual execution of this Agreement, Buyer will deposit with Title Guaranty of Hawaii Escrow, Inc., 235 Queen
Street, First Floor, Honolulu, Hawaii 96813, attention Barbara Paulo (the “Escrow Agent”), an earnest money deposit in the amount of Two Hundred Fifty Thousand U.S. Dollars (U.S. $250,000) (the “Initial Deposit”) in
immediately available funds. 
 (b) Additional Deposit. If Buyer elects to proceed to Closing in accordance with the
terms of this Agreement, on or before the expiration of the Due Diligence Period, Buyer will deposit with Escrow Agent a second earnest money deposit in the amount of Two Hundred Fifty Thousand U.S. Dollars (U.S. $250,000) (the “Additional
Deposit”) in immediately available funds. 
 2.2 Deposit Applied. The Initial Deposit and Additional Deposit and
all interest earned thereon are collectively called the “Deposit”, and constitute funds to be applied, subject to the provisions of this Agreement, toward the payment of the Purchase Price. The Deposit shall be held and invested by
Escrow Agent in accordance with the joint written instructions of Seller and Buyer given to Escrow Agent contemporaneously herewith. 
 2.3 Net Deposit. In the event Seller is entitled to retain the Deposit or Buyer is entitled to a refund of the Deposit, the amount retained or refunded will be the Deposit less any title and escrow
fees charged by Escrow Agent (the “Net Deposit”). 
 2.4 Cash at Closing. At the Closing, Buyer shall
pay Seller an amount (the “Closing Payment”) equal to (i) the Purchase Price, (ii) plus or minus net adjustments and prorations provided for in this Agreement, and (iii) minus the Deposit. The Closing Payment shall be
made by wire or intra-bank transfer in immediately available federal funds to Escrow Agent at least two (2) business day prior to the closing. The Deposit shall be disbursed by Escrow Agent to Seller at the Closing. 

3. Title. 

3.1 Title Report; Objections to Title. Within two (2) business days following the mutual execution of this Agreement by
the parties, Seller will instruct Escrow Agent to provide the parties a copy of a preliminary title report for the Real Property (the “Title Report”). Buyer will have ten (10) days after receipt of the Title Report from either
Seller or Escrow Agent to give written notice to Seller (a “Defects Notice”) setting forth any objections to Seller’s title to the Real Property. All other items described in the Title Report shall be “Approved Title
Exceptions”. Notwithstanding anything in this Agreement to the contrary, Seller shall in all events remove on or before Closing all monetary liens and encumbrances affecting the property, except real property taxes not yet due or payable
and except to the extent caused by the acts or omissions of Buyer and/or its contracts or agents. 

  
 2 

 3.2 Surveys. During the Due Diligence Period, Buyer may, at its sole expense, obtain
a survey of the Real Property (the “Survey”), and shall provide Seller with a copy of any Survey. Not later than ten (10) days prior to the end of the Due Diligence Period, Buyer shall give written notice to Seller (also a
Defects Notice) of any defect shown on or revealed by the Survey which Buyer is not willing to waive. 
 3.3 Cure of
Defects. Seller shall have five (5) days after receipt of a Defects Notice to notify Buyer (“Seller’s Title Response”) of its intent to correct the defects in the Title Report or the Survey objected to by Buyer. If
Seller does not timely provide Seller’s Title Response to Buyer, Seller shall be deemed to have elected not to cure any defects in the Title Report or Survey. If Seller elects (or is deemed to have elected) not to correct such defects, Buyer
shall notify Seller within two (2) business days following receipt of Seller’s Title Response (or the expiration of the 5-day response period set forth above), of Buyer’s intention to waive such defect or terminate this Agreement and
obtain a refund of the Net Deposit. 
 3.4 Estoppel Certificates; SNDAs. Seller will request that the property manager
for the Property cooperate with Buyer in preparing and obtaining the Estoppel Certificates and SNDAs (defined in Section 8.5 and 8.6, respectively), but if Seller is unable to satisfy the conditions specified in Section 8.5 with respect to
the Estoppel Certificates or 8.6 with respect to the SNDAs, Buyer’s sole remedy shall be either to waive the conditions set forth in Section 8.5 and/or Section 8.6, respectively, or terminate this Agreement on or prior to the
expiration of the Due Diligence Period (defined in Section 4.5) and receive a refund of the Net Deposit. 
 4.
Closing. Buyer and Seller agree that the purchase will be consummated as follows: 
 4.1 Title Transfer. Seller
agrees to convey title to the Property to Buyer by a limited warranty Assignment of Ground Lease, subject to the Approved Title Exceptions, on or before the close of business on the Closing Date and, effective on the delivery of such assignment by
Seller to Buyer, beneficial ownership and the risk of loss of the Property will pass from Seller to Buyer. 
 4.2 Closing
Date. This transaction will close on or before June 29, 2012 (the “Closing Date”). The closing will take place at the offices of Escrow Agent, with the exact time and date for closing to be designated by Seller and approved
by Buyer. 

  
 3 

 4.3 Seller’s Instruments. At the closing, Seller will deliver or cause to be
delivered to Buyer the following items (all documents will be duly executed and acknowledged where required): 
 (a)
Assignment of Ground Lease. A limited warranty Assignment of Ground Lease conveying the Real Property, subject to the Approved Title Exceptions, in the form of Exhibit 4.3(a) attached to this Agreement (“Assignment of Ground
Lease”). 
 (b) Assignment and Assumption of Tenant Leases. An Assignment and Assumption of Tenant Leases
assigning the Tenant Leases to Buyer, in the form of Exhibit 4.3(b) attached to this Agreement (“Assignment of Tenant Leases”). 
 (c) Assignment and Assumption of Contracts. An Assignment and Assumption of Contracts assigning the Operating Contracts, in the form of Exhibit 4.3(c) attached to this Agreement
(“Assignment of Contracts”). 
 (d) Bill of Sale. A Bill of Sale assigning the personal property and
Intangible Property to Buyer, in the form of Exhibit 4.3(d) attached to this Agreement. 
 (e) FIRPTA. A
certificate that Seller is not a foreign person within the meaning of Section 1445 of the Internal Revenue Code. 
 (f)
HARPTA. A certificate that Seller is a “resident person” as such term is used in H.R.S. Section 235-68. 

(g) Conveyance Tax Certificate. A conveyance tax certificate in the amount of the Purchase Price with respect to the Property.

 (h) Seller’s Authorization. Evidence satisfactory to Escrow Agent that Seller has the authority to enter into
this Agreement and consummate the transactions contemplated by this Agreement. 
 (i) Additional Documents. Such
additional documents as might be reasonably required by Buyer to consummate the sale of the Property to Buyer, including without limitation Escrow Agent’s customary statements, to the knowledge of Seller, regarding no leases except the Tenant
Leases and no construction. 
 4.4 Buyer’s Instruments. At the closing, Buyer will deliver or cause to be delivered
to Seller the following documents and other items (all documents duly executed and acknowledged where required): 
 (a)
Payment. The Closing Payment. 
 (b) Assignment of Ground Lease. The Assignment of Ground Lease. 

  
 4 

 (c) Assignment of Tenant Leases. The Assignment of Tenant Leases. 

(d) Assignment of Contracts. The Assignment of Contracts 

(e) Conveyance Tax Certificate. The conveyance tax certificate. 

(f) Buyer’s Authorization. Evidence satisfactory to Escrow Agent that Buyer has the authority to enter into this Agreement
and consummate the transactions contemplated by this Agreement. 
 (g) Additional Documents. Such additional documents
as might be reasonably required by Seller to consummate the sale of the Property to Buyer. 
 4.5 Costs. Seller will pay
the following costs: Seller’s attorneys’ fees, one-half of the fees of Escrow Agent. Buyer will pay the following costs: Buyer’s attorneys’ fees, all of the costs of the title search and title insurance premium, including any
additional costs for extended coverage and any endorsements to the title policy to be obtained by Buyer, and the cost of any mortgagee or lender’s policy requested by Buyer, the costs of recording the assignment conveying title to the Property
to Buyer, the conveyance tax, all sales and transfer taxes, and any mortgage recording fees, imposed by any governmental authority, and one-half of the fees of Escrow Agent. 
 5. Condition of Property. 
 5.1 Buyer’s Inspection. Seller
agrees that Buyer will be permitted for a period ending at 5:00 PM Hawaii Standard Time on June 25, 2012 (the “Due Diligence Period”) to inspect the Property at Buyer’s expense to examine the physical condition of the
Property and to have access to and make reasonable examination of the condition of the Property, utility costs, real estate title, and any contracts and leases affecting the Property; and to make any other investigations or reviews relating to the
Property that Buyer may deem necessary or appropriate. Buyer acknowledges that, while Seller is selling the Property as the owner of the Property, Seller was also the lender to the previous owner of the Property and retains confidential
information that will not be produced for inspection or given to Buyer, in Seller’s sole discretion. If during the Due Diligence Period Buyer, in its sole and absolute discretion, determines that (a) the condition of the Property is
unsatisfactory and Seller refuses to remedy or correct any such defects, or (b) Buyer is not satisfied with any other aspect of the Property or the proposed transaction, Buyer will have the option to terminate this Agreement by giving written
notice to Seller (“Termination Notice”) on or prior to 5:00 PM Hawaii Standard Time on the expiration of the Due Diligence Period and the Net Deposit will be returned to Buyer on such termination without further direction from the
parties hereto. If Buyer has not delivered to Seller the Termination Notice prior to 5:00 PM Hawaii Standard Time on the expiration of the Due Diligence Period, Buyer will be conclusively 

  
 5 

 
presumed to have accepted the Property and Buyer’s right to terminate this Agreement pursuant to this Section shall be deemed deleted from this Agreement, and this Agreement shall continue
in effect subject to the other provisions of this Agreement. 
 5.2 As Is Condition. Buyer acknowledges and agrees that
Seller has not made, does not make and specifically negates and disclaims any representations, warranties, promises, covenants, agreements or guaranties of any kind or character whatsoever, whether express or implied, oral or written, past, present
or future, of, as to, concerning or with respect to: 
 (a) value; 

(b) the income to be derived from the Property; 
 (c) the suitability of the Property for any and all activities and uses which Buyer may conduct thereon, including, without limitation, the possibilities for future development of the Property;

 (d) the habitability, merchantability, marketability, profitability or fitness for a particular purpose of the Property;

 (e) the manner, quality, state of repair or lack of repair of the Property; 

(f) the nature, quality or condition of the Property, including, without limitation, the water, soil and geology; 

(g) the compliance of or by the Property or its operation with any laws, rules, ordinances or regulations of any applicable governmental
authority or body, including requirements for a condominium regime; 
 (h) the manner or quality of the construction or
materials, if any, incorporated into the Property; 
 (i) compliance with any environmental protection, pollution or land use
laws, rules, regulation, orders or requirements, including, without limitation, Title III of the Americans with Disabilities Act of 1990, the Federal Water Pollution Control Act, the Federal Resource Conservation and Recovery Act, the U.S.
Environmental Protection Agency Regulations at 40 C.F.R., Part 261, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, the Resource Conservation and Recovery Act of 1976, the Clean Water Act, the Safe
Drinking Water Act, the Hazardous Materials Transportation Act, the Toxic Substance Control Act, and Regulations Promulgated under any of the foregoing; 
 (j) the presence or absence of hazardous materials at, on, under, or adjacent to the Property; 

  
 6 

 (k) the content, completeness or accuracy of the due diligence items or preliminary report
regarding title; 
 (l) the conformity of the improvements to any plans or specifications for the Property, including any plans
and specifications that may have been or may be provided to Buyer; 
 (m) the conformity of the Property to past, current or
future applicable zoning or building requirements; 
 (n) sufficiency of any undershoring; 

(o) sufficiency of any drainage; 
 (p) the fact that all or a portion of the Property may be located on or near an earthquake fault line; 
 (q) the existence of vested land use, zoning or building entitlements affecting the Property; 
 (r) any matters a survey would reveal, including encroachments from or onto the Property; or 
 (s) with respect to any other matter, except as otherwise expressly set forth in this Agreement. 
 5.3 Operation of the Property Prior to Closing. 
 (a) Seller shall operate
and manage the Property in substantially the same manner as it is now operated, including the leasing of units upon terms which are substantially similar to Seller’s past practices. 

(b) Seller shall not transfer nor remove any personalty that is material to the operation or value of the Property from the Property
subsequent to the Effective Date unless Seller replaces the same prior to the Closing Date with personalty of equivalent or better utility and quality to the items removed. 
 5.4 Buyer’s Inspection of Property. Buyer further acknowledges and agrees Buyer will be given full opportunity to inspect the Property and review information and documentation affecting the
Property (except for lender-related and confidential information as provided in this Agreement). Buyer is relying solely on its own investigation of the Property and review of such information and documentation, and not on any information provided
or to be provided by Seller. Buyer further acknowledges and agrees that any information made available to Buyer or provided or to 

  
 7 

 
be provided by or on behalf of Seller with respect to the Property was obtained from a variety of sources and that Seller has not made any independent investigation or verification of such
information and makes no representations as to the accuracy or completeness of such information. 
 5.5 Seller
Representations and Warranties. Seller makes the following representations and warranties to Buyer as of the Effective Date and at the Closing Date, which representations and warranties shall survive Closing for a period of six (6) months:

 (a) This Agreement and all documents contemplated hereunder to be executed by Seller have been duly authorized by all
requisite action on the part of Seller. This Agreement is a valid and binding agreement of Seller, enforceable in accordance with its terms. 
 (b) Seller is a duly formed Hawaii corporation validly existing under the laws of the United States and is qualified to do business in the State. Seller has the full right, power and authority to enter
into and carry out the transactions contemplated by this Agreement. 
 (c) Seller has the full authority to sell without the
necessity of third party consents or approvals, including without limitation, the approval of any court or court-appointed receiver. 
 5.6 Buyer’s Release of Seller. Except in connection with the representations and warranties of Seller under this Agreement, Buyer agrees to fully and irrevocably release Seller from any and
all claims that Buyer may now have or hereafter acquire against Seller from any costs, loss, liability, damage, expense, demand, action or cause of action arising from such information or documentation, and with respect to the Property, including
any hazardous materials on or about the Property, except with respect to Seller’s obligations under this Agreement. Seller is not liable or bound in any manner by any oral or written statements, representations or information pertaining to the
Property, or the operation thereof, furnished by any real estate broker, agent, employee, servant or other person. Buyer further acknowledges and agrees that to the maximum extent permitted by law, the sale of the Property as provided for herein is
made on an “AS IS” condition and basis WITH ALL FAULTS, and that Seller has no obligations to make repairs, replacements or improvements except as may otherwise be expressly stated in this Agreement. Buyer represents,
warrants, and covenants to Seller, that Buyer is relying solely upon Buyer’s own investigation of the Property. 
 5.7
Inspection Indemnity. Any investigation or examination of the Property is performed at the sole risk and expense of Buyer, and Buyer shall be solely responsible for the acts or omissions of any of Buyer’s employees, agents, consultants,
or advisors (“Buyer’s Advisors”) brought on, or to, the Property by Buyer, except to the extent caused by the gross negligence or willful misconduct of Seller. Buyer shall

  
 8 

 
defend, indemnify and hold Seller harmless from and against all claims for personal injury, wrongful death or property damage, against Seller or the Property arising from or as a result of, any
act or omission of Buyer or Buyer’s Advisors, in connection with any inspection or examination of the Property by Buyer or Buyer’s Advisors, including Seller’s attorneys’ fees and costs, except to the extent caused by the gross
negligence or willful misconduct of Seller. Notwithstanding anything to the contrary, Buyer shall have no indemnification or restoration obligations arising from or in connection with the mere discovery by Buyer of a pre-existing condition on the
Property; provided, shall use commercially reasonable steps to mitigate additional damage in connection with such discovery. 

5.8 Insurance. Upon request of Seller, Buyer shall provide evidence satisfactory to Seller that Buyer or Buyer’s Advisors, or
both, has liability and contractual indemnity insurance in the amount of $1,000,000, and issued by insurance carriers, reasonably acceptable to Seller, prior to entry on the Real Property of Buyer or Buyer’s Advisors. 

5.9 Survival. All of the provisions of this Section 5 shall survive the close of this transaction and not be merged with the
deed. 
 6. Adjustments and Prorations. The Purchase Price will be adjusted on the following basis: 

6.1 Rents. All base rents, percentage rents and other charges (“Rent”) receivable from tenants of the Property
earned and attributable to the period prior to the Closing Date will be paid to Seller to the extent that such Rents have been collected on or before the Closing Date; Rents earned and attributable to the period beginning on the Closing Date and
thereafter will be paid to Buyer. Rents received by Buyer within the first ninety (90) days on and after the Closing Date will be applied first to any amounts then due and owing to Buyer under the Tenant Leases, then paid to Seller for any
unpaid Rents owed to Seller; provided, that Buyer will have no obligation to enforce collection of such Rents. After said 90-day period, all Rents received by Buyer shall be the property of Buyer. Any prepaid Rents attributable to the period after
the Closing Date shall be credited to Buyer. 
 6.2 Security Deposits. On the Closing Date, Seller will deliver to Buyer
an amount of money equal to all refundable security deposits theretofore paid to Seller by tenants occupying the Property. Any security deposits paid by Seller with respect to the Ground Lease shall be transferred to Buyer and shall be credited to
Seller. 
 6.3 Delinquent Rents. Unpaid and delinquent Rent collected by Seller and Buyer within the first ninety
(90) days after the Closing Date shall be delivered as follows: (i) if Seller collects any unpaid or delinquent Rent for the Property, Seller shall, within fifteen (15) days after the receipt thereof, deliver to Buyer any such Rent
which Buyer is entitled to relating to the Closing Date and any period thereafter, and (ii) if 

  
 9 

 
Buyer collects any unpaid or delinquent Rent from the Property, Buyer shall, within fifteen (15) days after the receipt thereof, deliver to Seller any such Rent which Seller is entitled to
relating to the period prior to the Closing Date, net of any amounts applicable to Rents then due and payable and collection costs, if any. 
 6.4 Reconciliation. There shall be no prorations for Rents collected by either Seller prior to the Closing Date or by Buyer after the Closing Date with respect to tenant expense contributions, real
property tax contributions and other reimbursements under the Tenant Leases. Buyer shall be responsible for the reconciliation of all of such expenses and reimbursements under the Tenant Leases. 

6.5 Ground Lease Rents. All rents and other charges payable under the Ground Lease will be prorated as of the Closing Date.

 6.6 Operating Contracts. All sums due under the Operating Contracts for the period prior to the Closing Date will be
paid by Seller and Seller agrees to indemnify and hold the Buyer harmless with respect thereto. Buyer will furnish to the Seller any bills for such period received after the Closing Date for payment, and Buyer will have no further obligation with
respect thereto. All sums due under the Operating Contracts for the period on or after the Closing Date will be paid by Buyer and Buyer agrees to indemnify and hold the Seller harmless with respect thereto. 

6.7 Property Taxes. All real and personal property ad valorem taxes and installments of special assessments, if any, for the
calendar years preceding the year in which the Closing Date occurs will be paid by Seller. All real and personal property ad valorem taxes and special assessments, if any, whether payable in installments or not, for the calendar year in which the
Closing Date occurs will be prorated to the Closing Date, based on the latest available tax rate and assessed valuation. 
 6.8
Utility Charges. All utility charges, if any, will be prorated to the Closing Date and Buyer will obtain a final billing therefor. All utility security deposits, if any, will be retained by Seller. 

6.9 Post-Closing Adjustments. If at any time within one hundred twenty (120) days after the Closing Date either party
discovers any items which should have been included in the adjustments and prorations but which were omitted therefrom, or any material error in the computation of such adjustments, such items shall be properly adjusted as of the Closing Date
without interest thereon, including. 
 7. Possession. Possession of the Property will be delivered to Buyer on the
Closing Date. 
 8. Buyer’s Conditions to Close. Buyer’s obligation to purchase the Property hereunder shall be
subject to the satisfaction of the following conditions (collectively, “Buyer’s Conditions”); 

  
 10 

 8.1 Performance of Seller’s Covenants, Representations and Warranties. All
covenants and agreements made by Seller which are to be completed on or before the Closing shall have been performed in all material respects, and all documents and other material to be delivered by Seller at the Closing shall have been delivered to
Escrow Agent. All representations and warranties made in this Agreement by Seller shall be true and correct in all material respects at the time made and as of the Closing Date. 

8.2 Title Insurance Policy. Escrow Agent shall be unconditionally committed to issue to Buyer upon Closing an ALTA owner’s
title insurance policy, in the amount of the Purchase Price, insuring Buyer against any loss due to any defect in, or loss of, title or from any lien or encumbrance on the Real Property other than the Approved Title Exceptions, with such
endorsements as Buyer may reasonably require provided that the failure to obtain any endorsement shall not delay Closing. 
 8.3
Ground Lessor’s Waiver of ROFO. The ground lessor under the Ground Lease shall have waived its right of first offer under Article I, Section I, Special Condition 4 of the Ground Lease (“Ground Lessor’s ROFO”).

 8.4 No Material Adverse Change or Litigation. From the end of the Due Diligence Period until the Closing Date, there
shall not be any material adverse change to the Real Property, nor any newly instituted or enacted litigation, moratorium, referendum or law that has a material adverse effect on the Real Property or Seller’s ability to sell the Real Property
on the terms and conditions set forth in this Agreement. 
 8.5 Estoppel Certificates. Buyer shall have received a tenant
estoppel certificate (each, an “Estoppel Certificate,” and collectively, the “Estoppel Certificates”) either substantially in the form required by the Tenant Lease or substantially in the form attached to this
Agreement as Exhibit 8.5 from (a) each tenant occupying 3,000 square feet of space (the “Major Tenants”), and from (b) at least seventy percent (70%) of the remaining tenants at the Property. The
Estoppel Certificates shall be deemed acceptable to and approved by Buyer unless either or both of the Estoppel Certificates: (1) discloses material adverse economic terms of the applicable lease that were not disclosed to Buyer (whether in the
applicable lease or any other document delivered to Buyer) prior to the date of the delivery of such Estoppel Certificate to Buyer, (2) alleges a material default of Seller (as landlord) under the applicable lease, or (3) discloses a
material dispute between the Seller (as landlord) and the tenant in connection with the applicable lease. 
 8.6 SNDAs.
Buyer shall have received an executed subordination, non-disturbance, and attornment agreement (each, an “SNDA,” and collectively, the “SNDAs”) either substantially in the form required by the applicable Tenant
Lease or substantially in the form attached to this Agreement as Exhibit 8.6 from (a) the Major Tenants, and from (b) at least seventy percent (70%) of the remaining tenants at the Property. 

  
 11 

 8.7 Consents. All consents, approvals, permits and authorizations required to be
obtained prior to Closing from governmental and regulatory authorities, including without limitation, courts, in connection with the execution and delivery of this Agreement and the consummation of the transactions contemplated by this Agreement
shall have been made or obtained and all notice and waiting periods applicable to the consummation of the transactions contemplated hereby shall have expired or been terminated and all required regulatory filings, if any, shall have been made.

 8.8 Failure of Buyer’s Conditions. In the event that any of Buyer’s Conditions is not satisfied on or before
the Closing Date, Buyer, at its election, may either (a) by written notice to Seller terminate this Agreement, or (b) proceed with Closing as scheduled; provided, however, if Buyer proceeds with Closing, Buyer shall be deemed to have
waived its rights and remedies for any breach by Seller of any of Seller’s covenants with respect to any such Buyer’s Condition. 
 9. Seller’s Conditions to Close. Seller’s obligation to sell the Property hereunder shall be subject to the satisfaction of the following conditions (collectively, “Seller’s
Conditions”); 
 9.1 Performance of Buyer’s Covenants, Representations and Warranties. All
covenants and agreements made by Buyer which are to be completed on or before the Closing shall have been performed in all material respects, and all payments, documents and other material to be delivered by Buyer at the Closing shall have been
delivered to Escrow Agent. All representations and warranties made in this Agreement by Buyer shall be true and correct in all material respects at the time made and as of the Closing Date. 

9.2 Consents. All consents, approvals, permits and authorizations required to be obtained prior to Closing from
governmental and regulatory authorities, including without limitation, courts, in connection with the execution and delivery of this Agreement and the consummation of the transactions contemplated by this Agreement shall have been made or obtained
and all notice and waiting periods applicable to the consummation of the transactions contemplated hereby shall have expired or been terminated and all required regulatory filings, if any, shall have been made. 

9.3 Ground Lessor’s Waiver of ROFO. The ground lessor shall have waived the Ground Lessor’s ROFO. 

9.4 No Material Adverse Change or Litigation. From the end of the Due Diligence Period until the Closing Date,
there shall not be any material adverse change to the Real Property, nor any newly instituted or enacted litigation, moratorium, referendum or law that has a material adverse effect on the Real Property or Seller’s ability to sell the Real
Property on the terms and conditions set forth in this Agreement. 

  
 12 

 9.5 Failure of Seller’s Conditions. In the event that any of Seller’s
Conditions is not satisfied on or before the Closing Date, Seller, at its election, may either (a) by written notice to Buyer terminate this Agreement, or (b) proceed with Closing as scheduled; provided, however, Seller has waived its
rights and remedies for any breach by Buyer of any of Buyer’s covenants with respect to any such Seller’s Condition. 

10. Default; Remedy. 
 10.1 Notice of Default. In the event that either party fails to perform such party’s respective obligations hereunder (except as excused by the other’s prior default) the party claiming
default will make written demand for performance. 
 10.2 Seller’s Breach. If Seller fails to comply with such
written demand within ten (10) days after receipt thereof, Buyer’s sole remedy shall be either (a) to receive a refund of the Net Deposit plus up to Seventy-Five Thousand Dollars ($75,000) to reimburse Buyer for its third-party costs
and expenses to the extent actually incurred by Buyer and for which satisfactory evidence has been provided to Seller, which refund shall operate to terminate this Agreement and release Seller from any and all liability under this Agreement, or
(b) to seek specific performance of Seller’s obligations to execute the Assignment of Ground Lease and other closing documents to convey the Property to Buyer. Buyer expressly waives its rights to seek damages as a result of Seller’s
breach. The remedy of specific performance shall not be available to enforce any other obligation of Seller under this Agreement. Buyer shall be deemed to have elected to terminate this Agreement and receive the Net Deposit if Buyer fails to file
suit for specific performance against Seller in a court having jurisdiction in the City and County of Honolulu, State of Hawaii, on or before thirty (30) days following the date upon which closing was to have occurred. 

10.3 Buyer’s Breach. If Buyer fails to comply with such written demand within ten (10) days after receipt thereof,
Seller’s sole remedy shall be to terminate this Agreement and retain the Net Deposit as liquidated damages. The parties hereby acknowledge and agree that Seller’s actual damages as a result of Buyer’s breach, would be extremely
difficult, if not impossible, to determine. After negotiation, the parties have agreed that, considering the circumstances existing on the date of this Agreement, the amount of the Net Deposit represents a reasonable estimate of the damages Seller
would incur in such event. The foregoing limitation of remedies shall not limit any other express rights or remedies under this Agreement that Seller may have including any rights or remedies with respect to Buyer’s indemnification
obligations in connection with Buyer’s inspection of the Property. 
 10.4 Attorney’s Fees. In the event of a
lawsuit arising out of this Agreement, the prevailing party shall be entitled to recover all costs incurred including reasonable attorneys’ fees. 

  
 13 

 11. Brokerage. Seller is not represented in this transaction by any broker or finder.
Buyer is represented by Faris Lee Investments (“Buyer’s Broker”), Buyer shall be solely responsible for all fees and commissions owed to Buyer’s Broker, and Buyer shall indemnify and hold Seller harmless for any claim for
real estate brokerage commissions asserted by Buyer’s Broker against Seller. Seller and Buyer agree to hold each other harmless from any claim for real estate brokerage commissions asserted by any other party as a result of dealings with Seller
or Buyer in connection with this transaction. 
 12. Notices. Any notice, request, or demand made under this Agreement (a
“Notice”) shall be in writing and shall be either: (a) hand delivered, (b) sent by Federal Express, or other reputable courier service, (c) sent by postage pre-paid certified mail, return receipt requested, or
(d) sent by telecopier (with written confirmation of receipt), or (e) sent by e-mail (with acknowledgment of receipt). Each Notice shall be deemed given when received by the party at its address set forth below, if such Notice is hand
delivered, sent by Federal Express (or other reputable courier service) or e-mailed, to such address, and 2 business days after being postmarked and addressed to such party at its address set forth below if sent by certified mail, return receipt
requested: 
  

					
		 	To Seller:	  	 Central Pacific Bank

Special Credits Division
 220 South King Street,
5th Floor
 Honolulu, Hawaii 96813

Attn: Mark P. Harner
 Tel: (808)
544-3572
 FAX: (808) 532-5031
 E-mail:
mark.harner@centralpacificbank.com

			
		 	To Buyer:	  	 Thompson National Properties, LLC
 1900 Main Street, Suite 700
 Irvine, CA 92614

Attn: Stephen Corea
 Tel: (949) 833-8252
x166
 FAX: (949) 252-0212
 E-mail:
s.corea@tmpre.com

			
		 	With a copy to:	  	 Kaplan Voekler Cunningham & Frank, PLC
 7 East Second Street
 Richmond, Virginia 23224

Attn: D. Zachary Grabill, Esq.
 Tel: (804)
525-1797
 FAX: (804) 525-1798
 E-mail:
mailto:zgrabill@kv-legal.com

  
 14 

 Each party may designate a change of address by Notice given, as provided in this Agreement,
to the other party, at least 15 days prior to the date such change of address is to become effective. 
 13. Reliance by
Escrow Agent. Escrow Agent shall be entitled to rely upon any order, judgment, certification, demand, notice, instrument or other writing delivered to Escrow Agent with respect to this Agreement without being required to determine the
authenticity or the correctness of any fact stated therein or the propriety or validity of the service thereof. Escrow Agent may act in reliance upon any instrument or signature believed by Escrow Agent to be genuine and may assume that the person
purporting to give receipt or advice or make any statement or execute any document in connection with the provisions of this Agreement has been duly authorized to do so. Escrow Agent may conclusively presume that any of the representatives of any
party to this Agreement which is an entity other than a natural person have full power and authority to instruct Escrow Agent on behalf of that party unless written notice to the contrary is delivered to Escrow Agent by such entity. 

14. Confidentiality. Between the date of this Agreement and the Closing Date, Buyer and Seller will maintain in confidence, and
will cause the directors, officers, employees, agents, and advisors of Buyer and Seller to maintain in confidence, any written, oral, or other information obtained in confidence from another party in connection with this Agreement or the
transactions contemplated by this Agreement, unless (a) such information is already known to such party or to others not bound by a duty of confidentiality or such information becomes publicly available through no fault of such party,
(b) the use of such information is necessary or appropriate in making any filing or obtaining any consent or approval required for the consummation of the transactions contemplated by this Agreement, or (c) the furnishing or use of such
information is required by or necessary or appropriate in connection with legal proceedings. 
 15. Damage or Destruction,
Condemnation. 
 15.1 Damage or Destruction. If at any time prior to the Closing Date a material portion of the
Property is destroyed or damaged, or any Major Tenant has the right to terminate its lease or abate the payment of Rent thereunder, as a result of fire or any other casualty whatsoever, then at Buyer’s option, to be exercised three
(3) days after receipt of notice of such destruction or damage, this Agreement shall terminate, the Net Deposit shall be returned to Buyer, and except as expressly set forth herein, neither party shall have any further liability or obligation
to the other hereunder. If Buyer does not timely notify Seller in writing of its election to terminate this Agreement, Buyer shall be deemed to have elected not to terminate this Agreement. For purposes hereof, the term “material” shall be
deemed to be a damage or destruction in excess of One Million Dollars ($1,000,000). If less than a material portion of the Property is damaged or destroyed or if a material portion is damaged or destroyed and Buyer elects or is deemed

  
 15 

 
to have elected not to terminate this Agreement, the parties shall proceed to the Closing Date without reduction in the Purchase Price and, upon the Closing, all property insurance proceeds paid
or payable to Seller as a result of such casualty shall belong to Buyer and shall be paid over and assigned to Buyer. Seller shall have no obligation to make any repairs to the Property in the event of a damage or destruction. 

15.2 Condemnation. If at any time prior to the Closing Date any “material” portion of the Property is condemned or taken
by eminent domain proceedings by any public authority, or if as result of such condemnation or taking any Major Tenant has the right to terminate its lease or abate the payment of Rent thereunder, then at Buyer’s option, to be exercised within
three (3) days after receipt of notice of such taking, this Agreement shall terminate, and the Deposit shall be promptly returned to Buyer, and except as expressly set forth herein, neither party shall have any further liability or obligation
to the other hereunder. As used in this Section 15.2, the term “material” shall mean a taking which materially and adversely affects the value or operations of the Property and adversely affects the value of the Property by more than
One Million Dollars ($1,000,000). Seller shall give Buyer written notice of any taking promptly after Seller obtains knowledge thereof. If less than a material portion of the Property is condemned or taken by eminent domain proceedings or if Buyer
does not timely notify Seller in writing of its election to terminate this Agreement, Buyer shall be deemed to have elected not to terminate this Agreement. If Buyer elects or is deemed to have elected not to terminate this Agreement, the parties
shall proceed to the Closing Date without a reduction in the Purchase Price and, upon the Closing, all condemnation proceeds paid or payable to Seller (other than losses pertaining to periods prior to the Closing) shall belong to Buyer and shall be
paid over and assigned to Buyer. Seller shall have no obligation to make any repairs to the Property in the event of a condemnation. 
 16. Miscellaneous. 
 16.1 Time. Time is of the essence of this
Agreement. 
 16.2 Deemed Approval. For any notice Buyer is required to give Seller of approval or disapproval under this
Agreement, if Buyer has not given Seller written notice within the time required, Buyer will be deemed to have approved. 
 16.3
Survival. All representations and warranties of Seller and Buyer contained in this Agreement will terminate on and as of the Closing Date and will not survive the closing of this transaction, except for the warranties of title of Seller
expressed in documents delivered at closing, the agreement of Buyer with respect to inspection and condition of the Property, and Buyer’s indemnification, set forth in Section 5, and the agreement regarding brokerage fees set forth at
Section 11. 
 16.4 Entire Agreement. This instrument constitutes the entire agreement between Buyer and Seller with
respect to the sale of the Property to Buyer, and there are no agreements, understandings, warranties or representations between Buyer and Seller except as set forth in this Agreement. This Agreement cannot be amended except in writing executed by
Buyer and Seller. 

  
 16 

 16.5 Binding Effect. This Agreement will inure to the benefit of and bind the
respective successors and permitted assigns of the parties hereto. 
 16.6 Assignment. The rights of Buyer under this
Agreement cannot be assigned in whole or in part without the prior written consent of Seller which may be withheld in Seller’s sole and absolute discretion. Notwithstanding the foregoing, Seller shall consent to the assignment of this Agreement
by Buyer to an entity wholly-owned and controlled by Buyer or Buyer’s members, provided Buyer first provides Seller with a true fully executed copy of the assignment instrument and with such information regarding the assignee as Seller
requires. Upon any such assignment, the assignee shall be deemed to have made all of the representations and warranties of Buyer under this Agreement, and shall be liable to perform all of the covenants and obligations of Buyer under this Agreement.

 16.7 Construction. This Agreement and any documents delivered pursuant to this Agreement will be construed without
regard to which party drafted the document or any particular provision therein. This Agreement is governed by and shall be construed in accordance with the laws of the State of Hawaii. 

16.8 Computation of Time. Except as otherwise provided in this Agreement, all references to days are calendar days, thereby
including, Saturdays, Sundays and legal holidays. 
 17. OFAC. Buyer is not: (a) a person or entity who is
identified on the list of specially designated nationals subject to sanctions that is maintained by the U.S. Treasury Department, Office of Foreign Assets Control (accessible through the internet website www.treas.gov/ofac/t11sdn.pdf), or (b) a
person or entity with whom a U.S. citizen is prohibited to engage in transactions by any trade embargo, economic sanction, or other prohibition of United States law or Executive order of the U.S. President. 

18. Execution of Agreement. This Agreement may be executed in one or more counterparts, each of which will be deemed to be an
original copy of this Agreement, and all of which, when taken together, shall be deemed to constitute one and the same agreement. The exchange of copies of this Agreement and of signature pages by facsimile transmission or scanned (PDF) e-mail
attachment shall constitute effective execution and delivery of this Agreement as to the parties and may be used in lieu of the original Agreement for all purposes. Signatures of the parties transmitted by facsimile or e-mail attachment shall be
deemed to be their original signatures for any purpose whatsoever. 
 19. Rule 3-14 Audit. Buyer’s auditor may
conduct an audit of Property books and records, as may be required of Buyer pursuant to Rule 3-14 of Securities and 

  
 17 

 
Exchange Commission Regulation S-X (the “Audit”), of the income statements of the Property for the last complete fiscal year immediately preceding the Closing Date and the stub period
through the Closing Date (the “Audit Period”). Any Audit shall be at Buyer’s sole cost and expense and shall not be conducted in Seller’s offices or in any manner disrupt Seller’s day to day business operations. Seller shall
reasonably cooperate with Buyer’s auditor in the conduct of the Audit. Without limiting the foregoing, (a) Buyer or its designated independent or other auditor may audit the operating statements of the Property, at Buyer’s expense
and, upon Buyer’s prior written request, Seller shall allow Buyer’s auditors reasonable access to such books and records maintained by Seller in respect to the Property and pertaining to the Audit Period as necessary to conduct the Audit;
and (b) Seller shall use reasonable efforts to provide to Buyer such existing financial information as may be reasonably required by Buyer and required for Buyer’s auditors to conduct the Audit; provided, however, that the ongoing
obligations of Seller shall be limited to providing such information or documentation as may be in the possession or control of Seller, the Seller’s accountants or the applicable property or asset manager, at no cost to any of such parties, and
in the format that Seller has maintained such information. Seller’s production of Property books and records pursuant to any Audit conducted hereunder shall be made without representation or warranty of any kind and shall not be deemed to
increase, expand or amend this Agreement and the obligations, duties and covenants of the parties hereto. Buyer shall not use the Property books and records produced for any Audit as a basis to make any post-closing claim for a refund, rescission,
damages, concessions or for a credit of any kind by or against Seller. The provisions of this Section shall survive the Closing. 
 20. Expiration. This Agreement has been executed by the parties on the dates set forth below their respective signatures. It is understood that the obligation of Buyer under this Agreement will
terminate at 5:00 PM, Hawaii Standard Time, on June 11, 2012, unless Seller shall have duly executed and returned a copy of this Agreement to Buyer prior to such date and time. 

IN WITNESS WHEREOF, this Sale Agreement has been executed by the Seller and the Buyer on the date first above written. 

 

									
	CENTRAL PACIFIC BANK, a Hawaii corporation	 		 	TNP ACQUISITIONS, LLC, a Delaware
limited liability company
				
		 		 		 	By Thompson National Properties, LLC, a
Delaware limited liability company
	By	 	 /s/ Mark P. Harner
	 		 		 	
		 	Mark P. Harner	 		 		 	
		 	Its Vice President	 		 		 	
		 		 		 	By	 	 /s/ Stephen Corea

				
	Date Executed: June 14, 2012	 		 		 	Its SVP Acquisitions
		 	Seller	 		 		 	
					
		 		 		 		 	Date Executed: June 14, 2012
				
		 		 		 	Buyer

  
 18 

			
	Exhibits Attached to Agreement:
	Exhibit 4.3(a)	  	Assignment of Ground Lease
	Exhibit 4.3(b)	  	Assignment and Assumption of Tenant Leases
	Exhibit 4.3(c)	  	Assignment and Assumption of Contracts
	Exhibit 4.3(d)	  	Bill of Sale
	 Exhibit 8.5

Exhibit 8.6
	  	 Estoppel Certificate

SNDA

  
 19

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