Document:

Exhibit 4(c)(4)
                                                                 EXECUTION COPY

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                          REVOLVING CREDIT AGREEMENT
                                  (2002-1C-2)

                          Dated as of August 5, 2002

                                    between

                      STATE STREET BANK AND TRUST COMPANY

                            as Subordination Agent,

                                  as Borrower

                                      and

             WESTDEUTSCHE LANDESBANK GIROZENTRALE, NEW YORK BRANCH

                         as Primary Liquidity Provider

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                                  Relating to

                Northwest Airlines Pass Through Trust 2002-1C-2
             9.055% Northwest Airlines Pass Through Certificates,
                               Series 2002-1C-2

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                               TABLE OF CONTENTS

                                                                           Page

ARTICLE I DEFINITIONS.......................................................  1

          Section 1.01.  Certain Defined Terms..............................  1

ARTICLE II AMOUNT AND TERMS OF THE COMMITMENT...............................  7

          Section 2.01.  The Advances.......................................  7

          Section 2.02.  Making the Advances................................  7

          Section 2.03.  Fees...............................................  9

          Section 2.04.  Reduction or Termination of the Maximum
                         Commitment.........................................  9

          Section 2.05.  Repayments of Interest Advances or the Final
                         Advance............................................ 10

          Section 2.06.  Repayments of Provider Advances.................... 10

          Section 2.07.  Payments to the Primary Liquidity Provider Under
                         the Intercreditor Agreement........................ 11

          Section 2.08.  Book Entries....................................... 11

          Section 2.09.  Payments from Available Funds Only................. 11

          Section 2.10.  Extension of the Expiry Date; Non-Extension
                         Advance............................................ 12

          Section 2.11.  Right to Further Extend Expiry Date................ 12

ARTICLE III OBLIGATIONS OF THE BORROWER..................................... 13

          Section 3.01.  Increased Costs.................................... 13

          Section 3.02.  Capital Adequacy................................... 13

          Section 3.03.  Payments Free of Deductions........................ 14

          Section 3.04.  Payments........................................... 15

          Section 3.05.  Computations....................................... 15

          Section 3.06.  Payment on Non-Business Days....................... 15

          Section 3.07.  Interest........................................... 16

          Section 3.08.  Replacement of Borrower............................ 17

          Section 3.09.  Funding Loss Indemnification....................... 17

          Section 3.10.  Illegality......................................... 17

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                                                                           Page

ARTICLE IV CONDITIONS PRECEDENT............................................. 18

          Section 4.01.  Conditions Precedent to Effectiveness of
                         Section 2.01....................................... 18

          Section 4.02.  Conditions Precedent to Borrowing.................. 19

ARTICLE V COVENANTS......................................................... 20

          Section 5.01.  Affirmative Covenants of the Borrower.............. 20

          Section 5.02.  Negative Covenants of the Borrower................. 20

ARTICLE VI LIQUIDITY EVENTS OF DEFAULT...................................... 20

          Section 6.01.  Liquidity Events of Default........................ 20

ARTICLE VII MISCELLANEOUS................................................... 21

          Section 7.01.  Amendments, Etc.................................... 21

          Section 7.02.  Notices, Etc....................................... 21

          Section 7.03.  No Waiver; Remedies................................ 22

          Section 7.04.  Further Assurances................................. 22

          Section 7.05.  Indemnification; Survival of Certain Provisions.... 22

          Section 7.06.  Liability of the Primary Liquidity Provider........ 23

          Section 7.07.  Costs, Expenses and Taxes.......................... 23

          Section 7.08.  Binding Effect; Participations..................... 24

          Section 7.09.  Severability....................................... 25

          Section 7.10.  GOVERNING LAW...................................... 25

          Section 7.11.  Submission to Jurisdiction; Waiver of Jury
                         Trial; Waiver of Immunity.......................... 25

          Section 7.12.  Execution in Counterparts.......................... 26

          Section 7.13.  Entirety........................................... 26

          Section 7.14.  Headings........................................... 26

          Section 7.15.  PRIMARY LIQUIDITY PROVIDER'S OBLIGATION TO
                         MAKE ADVANCES...................................... 26

                                      ii

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ANNEXES

ANNEX I      Interest Advance Notice of Borrowing
ANNEX II     Non-Extension Advance Notice of Borrowing
ANNEX III    Downgrade Advance Notice of Borrowing
ANNEX IV     Final Advance Notice of Borrowing
ANNEX V      Notice of Termination
ANNEX VI     Notice of Replacement Subordination Agent

                                     iii

<PAGE>

                    REVOLVING CREDIT AGREEMENT (2002-1C-2)

          This REVOLVING CREDIT AGREEMENT (2002-1C-2) dated as of August 5,
2002, between STATE STREET BANK AND TRUST COMPANY, a Massachusetts trust
company, not in its individual capacity but solely as Subordination Agent
under the Intercreditor Agreement (each as defined below), (the "Borrower"),
and WESTDEUTSCHE LANDESBANK GIROZENTRALE, a German banking institution
organized under the laws of the State of North Rhine - Westphalia ("WestLB"),
acting through its New York Branch, (the "Primary Liquidity Provider").

                             W I T N E S S E T H:

          WHEREAS, pursuant to the Class C-2 Trust Agreement (such term and
all other capitalized terms used in these recitals having the meanings set
forth or referred to in Section 1.01), the Class C-2 Trust is issuing the
Class C-2 Certificates; and

          WHEREAS, the Borrower, in order to support the timely payment of a
portion of the interest on the Class C-2 Certificates in accordance with their
terms, has requested the Primary Liquidity Provider to enter into this
Agreement, providing in part for the Borrower to request in specified
circumstances that Advances be made hereunder.

          NOW, THEREFORE, in consideration of the premises, the parties hereto
agree as follows:

                                  ARTICLE I

                                 DEFINITIONS

          Section 1.01. Certain Defined Terms. (a) Definitions. As used in
this Agreement and unless otherwise expressly indicated, or unless the context
clearly requires otherwise, the following capitalized terms shall have the
following respective meanings for all purposes of this Agreement:

          "Advance" means an Interest Advance, a Final Advance, a Provider
     Advance, an Applied Provider Advance or an Unpaid Advance, as the case
     may be.

          "Applicable Liquidity Rate" has the meaning assigned to such term in
     Section 3.07(g).

          "Applicable Margin" means (a) with respect to any Unpaid Advance or
     Applied Provider Advance, 2.50% per annum, or (b) with respect to any
     Unapplied Provider Advance, the rate per annum specified in the Fee
     Letter applicable to this Agreement.

          "Applied Downgrade Advance" has the meaning assigned to such term in
     Section 2.06(a).

          "Applied Non-Extension Advance" has the meaning assigned to such
     term in Section 2.06(a).

<PAGE>

          "Applied Provider Advance" has the meaning assigned to such term in
     Section 2.06(a).

          "Base Rate" means a fluctuating interest rate per annum in effect
     from time to time, which rate per annum is at all times equal to (a) the
     weighted average of the rates on overnight Federal funds transactions
     with members of the Federal Reserve System arranged by Federal funds
     brokers, as published for such day (or, if such day is not a Business
     Day, for the next preceding Business Day) by the Federal Reserve Bank of
     New York, or if such rate is not so published for any day that is a
     Business Day, the average of the quotations for such day for such
     transactions received by the Primary Liquidity Provider from three
     Federal funds brokers of recognized standing selected by the Primary
     Liquidity Provider, plus (b) one quarter of one percent (0.25%) per
     annum.

          "Base Rate Advance" means an Advance that bears interest at a rate
     based upon the Base Rate.

          "Borrower" has the meaning assigned to such term in the recital of
     parties to this Agreement.

          "Borrowing" means the making of Advances requested by delivery of a
     Notice of Borrowing.

          "Business Day" means any day other than a Saturday or Sunday or a
     day on which commercial banks are required or authorized to close in New
     York, New York, Minneapolis, Minnesota, Boston, Massachusetts and Salt
     Lake City, Utah, or, so long as any Class C-2 Certificate is outstanding,
     the city and state in which the Class C-2 Trustee, the Borrower or any
     Loan Trustee maintains its Corporate Trust Office or receives or
     disburses funds, and, if the applicable Business Day relates to any
     Advance or other amount bearing interest based on the LIBOR Rate, on
     which dealings are carried on in the London interbank market.

          "Consent Notice" has the meaning assigned to such term in Section
     2.10.

          "Consent Period" has the meaning assigned to such term in Section
     2.10.

          "Delivery Period" means the period from the date hereof through
     March 31, 2004.

          "Deposit Agreement" means the Deposit Agreement, dated August 5,
     2002, between Wells Fargo Bank Northwest, National Association, as Escrow
     Agent and Credit Suisse First Boston, New York Branch, as Depositary,
     pertaining to the Class C-2 Certificates, as the same may be amended,
     modified or supplemented from time to time in accordance with the terms
     thereof.

          "Depositary" has the meaning assigned to such term in the Deposit
     Agreement.

          "Deposits" has the meaning assigned to such terms in the Deposit
     Agreement.

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<PAGE>

          "Downgrade Advance" means an Advance made pursuant to Section
     2.02(c).

          "Downgrade Event" means a downgrading of the Primary Liquidity
     Provider's short-term rating issued by any Rating Agency below the
     applicable Threshold Rating unless each Rating Agency shall have
     confirmed in writing on or prior to the date of such downgrading that
     such downgrading will not result in the downgrading, withdrawal or
     suspension of the ratings of the Class C-2 Certificates, in which case,
     such downgrading of the Primary Liquidity Provider's short-term rating
     shall not constitute a Downgrade Event.

          "Effective Date" has the meaning specified in Section 4.01. The
     delivery of the certificate of the Primary Liquidity Provider
     contemplated by Section 4.01(e) shall be conclusive evidence that the
     Effective Date has occurred.

          "Excluded Taxes" means (i) Taxes imposed on the overall net income
     of the Primary Liquidity Provider and (ii) Excluded Withholding Taxes.

          "Excluded Withholding Taxes" means (i) withholding Taxes imposed by
     the United States except to the extent that such United States
     withholding Taxes are imposed as a result of any change in applicable law
     (excluding from "change in applicable law" for this purpose, a change in
     an applicable treaty or other change in law affecting the applicability
     of a treaty) after the date hereof, or in the case of a successor Primary
     Liquidity Provider (including a transferee of an Advance) or Lending
     Office, after the date on which such successor Primary Liquidity Provider
     obtains its interest or on which the Lending Office is changed, and (ii)
     any withholding Taxes imposed by the United States which are imposed or
     increased as a result of the Primary Liquidity Provider failing to
     deliver to the Borrower any certificate or document (which certificate or
     document in the good faith judgment of the Primary Liquidity Provider it
     is legally entitled to provide) to establish that payments under this
     Agreement are exempt from (or entitled to a reduced rate of) withholding
     Tax.

          "Expenses" means liabilities, obligations, damages, settlements,
     penalties, claims, actions, suits, costs, expenses, and disbursements
     (including, without limitation, reasonable fees and disbursements of
     legal counsel and costs of investigation), provided that Expenses shall
     not include any Taxes.

          "Expiry Date" means August 3, 2003, initially, or any date to which
     the Expiry Date is extended pursuant to Section 2.10.

          "Extension Notice" has the meaning assigned to such term in Section
     2.10.

          "Fee Letters" means, collectively, (i) the Fee Letter dated as of
     the date hereof between the Primary Liquidity Provider and the
     Subordination Agent with respect to the initial Class C-2 Primary
     Liquidity Facility and (ii) any fee letter entered into between the
     Subordination Agent and any Replacement Primary Liquidity Provider in
     respect of such Primary Liquidity Facility.

          "Final Advance" means an Advance made pursuant to Section 2.02(d).

                                      3
<PAGE>

          "Intercreditor Agreement" means the Intercreditor Agreement dated
     the date hereof, among the Trustees, the Primary Liquidity Provider, the
     liquidity provider under each Primary Liquidity Facility (other than this
     Agreement), the Above-Cap Liquidity Provider, the Policy Provider and the
     Subordination Agent, as the same may be amended, supplemented or
     otherwise modified from time to time in accordance with its terms.

          "Interest Advance" means an Advance made pursuant to Section
     2.02(a).

          "Interest Period" means, with respect to any LIBOR Advance, each of
     the following periods:

          (i)  the period beginning on the third Business Day following either
               (a) the Primary Liquidity Provider's receipt of the Notice of
               Borrowing for such LIBOR Advance or (b) the withdrawal of funds
               from the Class C-2 Primary Cash Collateral Account for the
               purpose of paying interest on the Class C-2 Certificates as
               contemplated by Section 2.06(a) hereof and, in either case,
               ending on the next Regular Distribution Date; and

          (ii) each subsequent period commencing on the last day of the
               immediately preceding Interest Period and ending on the next
               Regular Distribution Date;

     provided, however, that (I) if an Unapplied Provider Advance which is a
     LIBOR Advance becomes an Applied Provider Advance, the Interest Period
     then applicable to such Unapplied Provider Advance shall be applicable to
     such Applied Provider Advance and (II) if (x) the Final Advance shall
     have been made, or (y) other outstanding Advances shall have been
     converted into the Final Advance, then the Interest Periods shall be
     successive periods of one month beginning on the third Business Day
     following the Primary Liquidity Provider's receipt of the Notice of
     Borrowing for such Final Advance (in the case of clause (x) above) or the
     last day of the Interest Period then applicable to such outstanding
     Advances (in the case of clause (y) above).

          "Lending Office" means the office of the Primary Liquidity Provider
     presently located in New York, New York, or such other lending office as
     the Primary Liquidity Provider from time to time shall notify the
     Borrower as its lending office hereunder.

          "LIBOR Advance" means an Advance bearing interest at a rate based
     upon the LIBOR Rate.

          "LIBOR Rate" means, with respect to any Interest Period, (i) the
     rate per annum appearing on display page 3750 (British Bankers
     Association--LIBOR) of the Dow Jones Markets Service (or any successor or
     substitute therefor) at approximately 11:00 A.M. (London time) two
     Business Days before the first day of such Interest Period, as the rate
     for dollar deposits with a maturity comparable to such Interest Period,
     or (ii) if the rate calculated pursuant to clause (i) above is not
     available, the average (rounded upwards, if necessary, to the next 1/16
     of 1%) of the rates per annum at which deposits in dollars are offered
     for the relevant Interest Period by three banks of recognized standing
     selected by the Primary Liquidity Provider in the London interbank market
     at

                                      4
<PAGE>

     approximately 11:00 A.M. (London time) two Business Days before the first
     day of such Interest Period in an amount approximately equal to the
     principal amount of the LIBOR Advance to which such Interest Period is to
     apply and for a period comparable to such Interest Period.

          "Liquidity Event of Default" means the occurrence of the following:
     (i) all of the Equipment Notes shall have been either declared to be
     immediately due and payable or shall not have been paid at their final
     maturity; provided that, if an acceleration of the Equipment Notes occurs
     during the Delivery Period, a Liquidity Event of Default shall occur only
     if the aggregate principal amount of the Equipment Notes exceeds $300.0
     million, or (ii) a Northwest Bankruptcy Event.

          "Liquidity Indemnitee" means (i) the Primary Liquidity Provider,
     (ii) the directors, officers, employees and agents of the Primary
     Liquidity Provider, and (iii) the successors and permitted assigns of the
     persons described in clauses (i) and (ii), inclusive.

          "Maximum Available Commitment" shall mean, subject to the proviso
     contained in the third sentence of Section 2.02(a), at any time of
     determination, (a) the Maximum Commitment at such time less (b) the
     aggregate amount of each Interest Advance outstanding at such time;
     provided that following a Provider Advance or a Final Advance, the
     Maximum Available Commitment shall be zero.

          "Maximum Commitment" means (i) in the case of any day occurring
     before the first Regular Distribution Date, $7,606,200.00 and (ii) in the
     case of any day occurring on or after the first Regular Distribution
     Date, the Required Amount on such day.

          "Non-Excluded Tax" has the meaning specified in Section 3.03(a).

          "Non-Extension Advance" means an Advance made pursuant to Section
     2.02(b).

          "Notice of Borrowing" has the meaning specified in Section 2.02(e).

          "Notice of Replacement Subordination Agent" has the meaning
     specified in Section 3.08.

          "Performing Note Deficiency" means any time that less than 65% of
     the then aggregate outstanding principal amount of all Equipment Notes
     are Performing Equipment Notes.

          "Primary Liquidity Provider" has the meaning assigned to such term
     in the recital of parties to this Agreement.

          "Prospectus Supplement" means the Prospectus Supplement dated July
     29, 2002, relating to the Class G-1 Certificates, Class G-2 Certificates,
     the Class C-1 Certificates and the Class C-2 Certificates, as such
     Prospectus Supplement may be amended or supplemented.

          "Provider Advance" means a Downgrade Advance or a Non-Extension
     Advance.

                                      5
<PAGE>

          "Replenishment Amount" has the meaning assigned to such term in
     Section 2.06(b).

          "Required Amount" means, for any day, the sum of the aggregate
     amount of interest, calculated at the rate per annum equal to the Stated
     Interest Rate for the Class C-2 Certificates, that would be payable on
     the Class C-2 Certificates on each of the six successive Regular
     Distribution Dates immediately following such day or, if such day is a
     Regular Distribution Date, on such day and the succeeding five Regular
     Distribution Dates, in each case calculated on the basis of the Pool
     Balance of the Class C-2 Certificates on such day and without regard to
     expected future payments of principal on the Class C-2 Certificates.
     Notwithstanding the above, in the event of a Policy Provider Election,
     the Pool Balance, for purposes of this definition, shall be deemed to be
     reduced by an amount (if positive) by which (a) the then outstanding
     principal balance of the Series C-2 Equipment Note in respect of which
     the Policy Provider Election has been made shall exceed (b) the amount of
     any policy drawings previously paid by the Policy Provider in respect of
     principal on such Series C-2 Equipment Note.

          "Termination Date" means the earliest to occur of the following: (i)
     the Expiry Date; (ii) the date on which the Borrower delivers to the
     Primary Liquidity Provider a certificate, signed by a Responsible Officer
     of the Borrower, certifying that all of the Class C-2 Certificates have
     been paid in full (or provision has been made for such payment in
     accordance with the Intercreditor Agreement and the Trust Agreements) or
     are otherwise no longer entitled to the benefits of this Agreement; (iii)
     the date on which the Borrower delivers to the Primary Liquidity Provider
     a certificate, signed by a Responsible Officer of the Borrower,
     certifying that a Replacement Primary Liquidity Facility has been
     substituted for this Agreement in full pursuant to Section 3.6(e) of the
     Intercreditor Agreement; (iv) the fifth Business Day following the
     receipt by the Borrower of a Termination Notice from the Primary
     Liquidity Provider pursuant to Section 6.01 hereof; and (v) the date on
     which no Advance is or may (including by reason of reinstatement as
     herein provided) become available for a Borrowing hereunder.

          "Termination Notice" means the Notice of Termination substantially
     in the form of Annex V to this Agreement.

          "Transferee" has the meaning assigned to such term in Section
     7.08(b).

          "Unapplied Downgrade Advance" means any Downgrade Advance other than
     an Applied Downgrade Advance.

          "Unapplied Non-Extension Advance" means any Non-Extension Advance
     other than an Applied Non-Extension Advance.

          "Unapplied Provider Advance" means any Provider Advance other than
     an Applied Provider Advance.

          "Unpaid Advance" has the meaning assigned to such term in Section
     2.05.

          "Withdrawal Notice" has the meaning assigned to such term in Section
     2.10.

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<PAGE>

          (b) Terms Defined in the Intercreditor Agreement. For all purposes
of this Agreement, the following terms shall have the respective meanings
assigned to such terms in the Intercreditor Agreement:

     "Above-Cap Liquidity Provider", "Acceleration", "Affiliate", "Break
     Amount Certificates", "Capped Interest Rate", "Certificates", "Class C-2
     Certificateholders", "Class C-2 Certificates", "Class C-2 Primary Cash
     Collateral Account", "Class C-2 Trust", "Class C-2 Trust Agreement",
     "Class C-2 Trustee", "Class G-1 Certificates", "Class G-2 Certificates",
     "Class C-1 Certificates", "Class D Certificates", "Closing Date",
     "Controlling Party", "Corporate Trust Office", "Delivery Period Expiry
     Date", "Distribution Date", "Downgraded Facility", "Equipment Notes",
     "Final Legal Distribution Date", "Financing Agreement", "Fitch",
     "Indenture", "Interest Payment Date", "Investment Earnings", "Liquidity
     Obligations", "Loan Trustee", "Moody's", "Non-Extended Facility",
     "Northwest", "Northwest Bankruptcy Event", "Note Purchase Agreement",
     "Operative Agreements", "Performing Equipment Note", "Person", "Policy
     Provider", "Pool Balance", "Prepayment Premium", "Primary Liquidity
     Facility", "Rating Agency", "Ratings Confirmation", "Regular Distribution
     Date", "Replacement Primary Liquidity Facility", "Responsible Officer",
     "Scheduled Payment", "Series G-1 Equipment Note", "Special Payment",
     "Standard & Poor's", "Stated Interest Rate", "Subordination Agent",
     "Taxes", "Threshold Rating", "Trust Agreements", "Trustee",
     "Underwriters", "Underwriting Agreement" and "Written Notice".

                                  ARTICLE II

                      AMOUNT AND TERMS OF THE COMMITMENT

          Section 2.01. The Advances. The Primary Liquidity Provider hereby
irrevocably agrees, on the terms and conditions hereinafter set forth, to make
Advances to the Borrower from time to time on any Business Day during the
period from the Effective Date until 1:00 P.M. (New York City time) on the
Expiry Date (unless the obligations of the Primary Liquidity Provider shall be
earlier terminated in accordance with the terms of Section 2.04(b)) in an
aggregate amount at any time outstanding not to exceed the Maximum Commitment.

          Section 2.02. Making the Advances. (a) Interest Advances shall be
made in one or more Borrowings by delivery to the Primary Liquidity Provider
of one or more written and completed Notices of Borrowing in substantially the
form of Annex I attached hereto, signed by a Responsible Officer of the
Borrower, in an amount not exceeding the Maximum Available Commitment at such
time and shall be used solely for the payment when due of interest on the
Class C-2 Certificates at the Stated Interest Rate therefor in accordance with
Section 3.6(a) of the Intercreditor Agreement. Each Interest Advance made
hereunder shall automatically reduce the Maximum Available Commitment and the
amount available to be borrowed hereunder by subsequent Advances by the amount
of such Interest Advance (subject to reinstatement as provided in the next
sentence). Subject to the provisions of Section 3.6(g) of the Intercreditor
Agreement, upon repayment to the Primary Liquidity Provider of the amount of
any Interest Advance made pursuant to this Section 2.02(a), together with
accrued interest thereon (as provided herein), the Maximum Available
Commitment shall be reinstated by the amount of such repaid Interest Advance,
but not to exceed the Maximum Commitment; provided, however,

                                      7
<PAGE>

that the Maximum Available Commitment shall not be so reinstated at any time
if (i) a Liquidity Event of Default shall have occurred and be continuing and
(ii) there is a Performing Note Deficiency.

          (b) A Non-Extension Advance shall be made in a single Borrowing if
this Agreement is not renewed in accordance with Section 3.6(d) of the
Intercreditor Agreement (unless a Replacement Primary Liquidity Facility to
replace this Agreement shall have been delivered to the Borrower as
contemplated by said Section 3.6(d) within the time period specified in such
Section) by delivery to the Primary Liquidity Provider of a written and
completed Notice of Borrowing in substantially the form of Annex II attached
hereto, signed by a Responsible Officer of the Borrower, in an amount equal to
the Maximum Available Commitment at such time, and shall be used to fund the
Class C-2 Primary Cash Collateral Account in accordance with said Section
3.6(d) and Section 3.6(f) of the Intercreditor Agreement.

          (c) A Downgrade Advance shall be made in a single Borrowing upon the
occurrence of a Downgrade Event (as provided for in Section 3.6(c) of the
Intercreditor Agreement) unless a Replacement Primary Liquidity Facility to
replace this Agreement shall have been previously delivered to the Borrower in
accordance with said Section 3.6(c), by delivery to the Primary Liquidity
Provider of a written and completed Notice of Borrowing in substantially the
form of Annex III attached hereto, signed by a Responsible Officer of the
Borrower, in an amount equal to the Maximum Available Commitment at the time
of such borrowing, and shall be used to fund the Class C-2 Primary Cash
Collateral Account in accordance with said Section 3.6(c) and Section 3.6(f)
of the Intercreditor Agreement.

          (d) A Final Advance shall be made in a single Borrowing upon the
receipt by the Borrower of a Termination Notice from the Primary Liquidity
Provider pursuant to Section 6.01 hereof by delivery to the Primary Liquidity
Provider of a written and completed Notice of Borrowing in substantially the
form of Annex IV attached hereto, signed by a Responsible Officer of the
Borrower, in an amount equal to the Maximum Available Commitment at such time,
and shall be used to fund the Class C-2 Primary Cash Collateral Account in
accordance with Section 3.6(i) and Section 3.6(f) of the Intercreditor
Agreement.

          (e) Each Borrowing shall be made on notice in writing (a "Notice of
Borrowing") in substantially the form required by Section 2.02(a), 2.02(b),
2.02(c) or 2.02(d), as the case may be, given by the Borrower to the Primary
Liquidity Provider. If a Notice of Borrowing is delivered by the Borrower in
respect of any Borrowing no later than 1:00 p.m. (New York City time) on a
Business Day, upon satisfaction of the conditions precedent set forth in
Section 4.02 with respect to a requested Borrowing, the Primary Liquidity
Provider shall make available to the Borrower, in accordance with its payment
instructions, the amount of such Borrowing in U.S. dollars and immediately
available funds, before 4:00 p.m. (New York City time) on such Business Day or
on such later Business Day specified in such Notice of Borrowing. If a Notice
of Borrowing is delivered by the Borrower in respect of any Borrowing after
1:00 p.m. (New York City time) on a Business Day, upon satisfaction of the
conditions precedent set forth in Section 4.02 with respect to a requested
Borrowing, the Primary Liquidity Provider shall make available to the
Borrower, in accordance with its payment instructions, the amount of such
Borrowing in U.S. dollars and immediately available funds, before 12:00 Noon
(New York City

                                      8
<PAGE>

time) on the first Business Day next following the day of receipt of such
Notice of Borrowing or on such later Business Day specified by the Borrower in
such Notice of Borrowing. Payments of proceeds of a Borrowing shall be made by
wire transfer of immediately available funds to the Borrower in accordance
with such wire transfer instructions as the Borrower shall furnish from time
to time to the Primary Liquidity Provider for such purpose. Each Notice of
Borrowing shall be irrevocable and binding on the Borrower.

          (f) Upon the making of any Advance requested pursuant to a Notice of
Borrowing, in accordance with the Borrower's payment instructions, the Primary
Liquidity Provider shall be fully discharged of its obligation hereunder with
respect to such Notice of Borrowing, and the Primary Liquidity Provider shall
not thereafter be obligated to make any further Advances hereunder in respect
of such Notice of Borrowing to the Borrower or to any other Person. If the
Primary Liquidity Provider makes an Advance requested pursuant to a Notice of
Borrowing before 12:00 Noon (New York City time) on the second Business Day
after the date of payment specified in said Section 2.02(e), the Primary
Liquidity Provider shall have fully discharged its obligations hereunder with
respect to such Advance and an event of default shall not have occurred
hereunder. Following the making of any Advance pursuant to Section 2.02(b),
(c) or (d) hereof to fund the Class C-2 Primary Cash Collateral Account, the
Primary Liquidity Provider shall have no interest in or rights to the Class
C-2 Primary Cash Collateral Account, the funds constituting such Advance or
any other amounts from time to time on deposit in the Class C-2 Primary Cash
Collateral Account; provided that the foregoing shall not affect or impair the
obligations of the Subordination Agent to make the distributions contemplated
by Section 3.6(e) or (f) of the Intercreditor Agreement and provided further,
that the foregoing shall not affect or impair the rights of the Primary
Liquidity Provider to provide written instructions with respect to the
investment and reinvestment of amounts in the Cash Collateral Accounts to the
extent provided in Section 2.2(b) of the Intercreditor Agreement. By paying to
the Borrower proceeds of Advances requested by the Borrower in accordance with
the provisions of this Agreement, the Primary Liquidity Provider makes no
representation as to, and assumes no responsibility for, the correctness or
sufficiency for any purpose of the amount of the Advances so made and
requested.

          Section 2.03. Fees. The Borrower agrees to pay to the Primary
Liquidity Provider the fees set forth in the Fee Letter applicable to this
Agreement.

Section 2.04.     Reduction or Termination of the Maximum Commitment.

          (a) Reduction. Promptly following each date on which the Required
Amount is reduced as a result of a reduction in the Pool Balance of the Class
C-2 Certificates or otherwise, the Maximum Commitment shall automatically be
reduced to an amount equal to such reduced Required Amount (as calculated by
the Borrower). The Borrower shall give notice of any such automatic reduction
of the Maximum Commitment to the Primary Liquidity Provider within two
Business Days thereof. The failure by the Borrower to furnish any such notice
shall not affect such automatic adjustment of the Maximum Commitment.

          (b) Termination. Upon the making of any Provider Advance or Final
Advance hereunder or the occurrence of the Termination Date, the obligation of
the Primary Liquidity

                                      9
<PAGE>

Provider to make further Advances hereunder shall automatically and
irrevocably terminate, and the Borrower shall not be entitled to request any
further Borrowing hereunder.

          Section 2.05. Repayments of Interest Advances or the Final Advance.
Subject to Sections 2.06, 2.07 and 2.09 hereof, the Borrower hereby agrees,
without notice of an Advance or demand for repayment from the Primary
Liquidity Provider (which notice and demand are hereby waived by the
Borrower), to pay, or to cause to be paid, to the Primary Liquidity Provider
on each date on which the Primary Liquidity Provider shall make an Interest
Advance or the Final Advance, an amount equal to (a) the amount of such
Advance (any such Advance, until repaid, is referred to herein as an "Unpaid
Advance"), plus (b) interest on the amount of each such Unpaid Advance as
provided in Section 3.07 hereof; provided that if (i) the Primary Liquidity
Provider shall make a Provider Advance at any time after making one or more
Interest Advances which shall not have been repaid in accordance with this
Section 2.05 or (ii) this Primary Liquidity Facility shall become a Downgraded
Facility or Non-Extended Facility at any time when unreimbursed Interest
Advances have reduced the Maximum Available Commitment to zero, then such
Interest Advances shall cease to constitute Unpaid Advances and shall be
deemed to have been changed into an Applied Downgrade Advance or an Applied
Non-Extension Advance, as the case may be, for all purposes of this Agreement
(including, without limitation, for the purpose of determining when such
Interest Advance is required to be repaid to the Primary Liquidity Provider in
accordance with Section 2.06 and for the purposes of Section 2.06(b)). The
Borrower and the Primary Liquidity Provider agree that the repayment in full
of each Interest Advance and Final Advance on the date such Advance is made is
intended to be a contemporaneous exchange for new value given to the Borrower
by the Primary Liquidity Provider.

          Section 2.06. Repayments of Provider Advances. (a) Amounts advanced
hereunder in respect of a Provider Advance shall be deposited in the Class C-2
Primary Cash Collateral Account, invested and withdrawn from the Class C-2
Primary Cash Collateral Account as set forth in Sections 3.6(c), (d) and (f)
of the Intercreditor Agreement. The Borrower agrees to pay to the Primary
Liquidity Provider, on each Regular Distribution Date, commencing on the first
Regular Distribution Date after the making of a Provider Advance, interest on
the principal amount of any such Provider Advance as provided in Section 3.07;
provided, however, that amounts in respect of a Provider Advance withdrawn
from the Class C-2 Primary Cash Collateral Account for the purpose of paying
interest on the Class C-2 Primary Certificates in accordance with Section
3.6(f) of the Intercreditor Agreement (the amount of any such withdrawal being
(y) in the case of a Downgrade Advance, an "Applied Downgrade Advance" and (z)
in the case of a Non-Extension Advance, an "Applied Non-Extension Advance"
and, together with an Applied Downgrade Advance, an "Applied Provider
Advance") shall thereafter (subject to Section 2.06(b)) be treated as an
Interest Advance under this Agreement for purposes of determining the
Applicable Liquidity Rate for interest payable thereon; provided further,
however, that if, following the making of a Provider Advance, the Primary
Liquidity Provider delivers a Termination Notice to the Borrower pursuant to
Section 6.01 hereof, such Provider Advance shall thereafter be treated as a
Final Advance under this Agreement for purposes of determining the Applicable
Liquidity Rate for interest payable thereon. Subject to Sections 2.07 and 2.09
hereof, immediately upon the withdrawal of any amounts from the Class C-2
Primary Cash Collateral Account on account of a reduction in the Required
Amount, the Borrower shall repay to the Primary Liquidity Provider a portion
of the Provider Advances in a principal amount

                                      10
<PAGE>

equal to such reduction, plus interest on the principal amount prepaid as
provided in Section 3.07 hereof.

          (b) At any time when an Applied Provider Advance (or any portion
thereof) is outstanding, upon the deposit in the Class C-2 Primary Cash
Collateral Account of any amount pursuant to clause "third" of Section 2.4(b)
of the Intercreditor Agreement, clause "third" of Section 3.2 of the
Intercreditor Agreement or clause "fourth" of Section 3.3 of the Intercreditor
Agreement (any such amount being a "Replenishment Amount") for the purpose of
replenishing or increasing the balance thereof up to the Required Amount at
such time, (i) the aggregate outstanding principal amount of all Applied
Provider Advances (and of Provider Advances treated as an Interest Advance for
purposes of determining the Applicable Liquidity Rate for interest payable
thereon) shall be automatically reduced by the amount of such Replenishment
Amount and (ii) the aggregate outstanding principal amount of all Unapplied
Provider Advances shall be automatically increased by the amount of such
Replenishment Amount.

          (c) Upon the provision of a Replacement Primary Liquidity Facility
in replacement of this Agreement in accordance with Section 3.6(e) of the
Intercreditor Agreement, amounts remaining on deposit in the Class C-2 Primary
Cash Collateral Account after giving effect to any Applied Provider Advance on
the date of such replacement shall be reimbursed to the Primary Liquidity
Provider, but only to the extent such amounts are necessary to repay in full
to the Primary Liquidity Provider all amounts owing to it hereunder.

          Section 2.07. Payments to the Primary Liquidity Provider Under the
Intercreditor Agreement. In order to provide for payment or repayment to the
Primary Liquidity Provider of any amounts hereunder, the Intercreditor
Agreement provides that amounts available and referred to in Articles II and
III of the Intercreditor Agreement, to the extent payable to the Primary
Liquidity Provider pursuant to the terms of the Intercreditor Agreement
(including, without limitation, Section 3.6(f) of the Intercreditor
Agreement), shall be paid to the Primary Liquidity Provider in accordance with
the terms thereof. Amounts so paid to the Primary Liquidity Provider shall be
applied by the Primary Liquidity Provider to Liquidity Obligations then due
and payable in accordance with the Intercreditor Agreement or, if not provided
for in the Intercreditor Agreement, then in such manner as the Primary
Liquidity Provider shall deem appropriate.

          Section 2.08. Book Entries. The Primary Liquidity Provider shall
maintain in accordance with its usual practice an account or accounts
evidencing the indebtedness of the Borrower resulting from Advances made from
time to time and the amounts of principal and interest payable hereunder and
paid from time to time in respect thereof; provided, however, that the failure
by the Primary Liquidity Provider to maintain such account or accounts shall
not affect the obligations of the Borrower in respect of Advances.

          Section 2.09. Payments from Available Funds Only. All payments to be
made by the Borrower under this Agreement shall be made only from the amounts
that constitute Scheduled Payments, Special Payments or payments under Section
7(c) of the Participation Agreements and Section 7 of the Note Purchase
Agreement and only to the extent that the Borrower shall have sufficient
income or proceeds therefrom to enable the Borrower to make payments in
accordance with the terms hereof after giving effect to the priority of
payments

                                      11
<PAGE>

provisions set forth in the Intercreditor Agreement. The Primary Liquidity
Provider agrees that it will look solely to such amounts to the extent
available for distribution to it as provided in the Intercreditor Agreement
and this Agreement and that the Borrower, in its individual capacity, is not
personally liable to it for any amounts payable or liability under this
Agreement except as expressly provided in this Agreement, the Intercreditor
Agreement or any Participation Agreement. Amounts on deposit in the Class C-2
Primary Cash Collateral Account shall be available to the Borrower to make
payments under this Agreement only to the extent and for the purposes
expressly contemplated in Section 3.6(f) of the Intercreditor Agreement.

          Section 2.10. Extension of the Expiry Date; Non-Extension Advance.
The Borrower may, from time to time, by notice to the Primary Liquidity
Provider (each such notice being an "Extension Notice") given no later than
the 40th day and no earlier than the 60th day prior to the then applicable
Expiry Date, request that the Primary Liquidity Provider renew its obligations
hereunder for a period ending on a date (the "Renewal Date") that is the
earlier of (i) the date which is 15 days after the Final Legal Distribution
Date for the Class C-2 Certificates and (ii) the date that is the day
immediately preceding the 364th day occurring after the last day of the
Consent Period (as hereinafter defined). Whether or not the Primary Liquidity
Provider has received a request from the Borrower, such Primary Liquidity
Provider may, but shall not be obligated to, by a notice (a "Consent Notice")
to the Borrower, given during the period commencing on the date that is 60
days prior to the Expiry Date then in effect (or, if earlier, the date of such
Primary Liquidity Provider's receipt of such request, if any, from the
Borrower) and ending on the date that is 25 days prior to the Expiry Date then
in effect for such Primary Liquidity Facility (such period, with respect to
such Primary Liquidity Facility, the "Consent Period"), advise the Borrower
whether, in its sole discretion, it consents to such extension of its
obligations hereunder for the period ending on the Renewal Date, in which
event the Renewal Date shall become the Expiry Date, which consent may be
given or withheld by the Primary Liquidity Provider in its absolute and sole
discretion; provided, however, that such extension shall not be effective with
respect to the Primary Liquidity Provider if by a notice (a "Withdrawal
Notice") to the Borrower during the Consent Period the Primary Liquidity
Provider revokes its Consent Notice. If a Withdrawal Notice has been given
during the applicable Consent Period or if the Primary Liquidity Provider
fails irrevocably and unconditionally to advise the Borrower on or before the
date on which such Consent Period ends that it agrees to so extend its
obligations hereunder, (and, in each case, if the Primary Liquidity Provider
shall not have been replaced in accordance with Section 3.6(e) of the
Intercreditor Agreement), the Borrower shall be entitled on and after the date
on which the Consent Period ends (but prior to the then effective Expiry Date)
to request a Non-Extension Advance in accordance with Section 2.02(b) hereof
and Section 3.6(d) of the Intercreditor Agreement.

          Section 2.11. Right to Further Extend Expiry Date. Subject to the
proviso in the immediately succeeding sentence, the Primary Liquidity Provider
shall have the right at any time and without the consent of the Borrower to
extend the then effective Expiry Date up to the date that is 15 days after the
Final Legal Distribution Date for the Class C-2 Certificates by giving not
less than five nor more than ten days' prior written notice of such extension
to the Borrower, the Class C-2 Trustee and Northwest (which notice shall
specify the effective date of such extension (the "Extension Effective
Date")). On the Extension Effective Date, the then effective Expiry Date shall
be so extended without any further act; provided, however, that if prior to
the

                                      12
<PAGE>

Extension Effective Date a Downgrade Event shall have occurred, the then
effective Expiry Date shall not be so extended.

                                 ARTICLE III

                          OBLIGATIONS OF THE BORROWER

          Section 3.01. Increased Costs. If the Primary Liquidity Provider
shall determine that (a) any change after the date hereof in any law,
regulation, rule or directive or in the interpretation thereof by any court or
administrative or governmental authority charged with the administration
thereof or in the compliance by the Primary Liquidity Provider (or its head
office) with any applicable direction, request or requirement (whether or not
having the force of law) of any central bank or competent governmental or
other authority shall either (i) impose, modify or deem applicable any
reserve, special deposit or similar requirement against assets held by, or
deposits in or for the account of, or loans made by, the Primary Liquidity
Provider, or (ii) impose on the Primary Liquidity Provider any other condition
regarding this Agreement or any Advance, or (iii) subject the Primary
Liquidity Provider to any Taxes with respect to amounts payable or paid or
change the basis of taxation of any amounts payable to the Primary Liquidity
Provider (other than Excluded Taxes) and (b) the result of any event referred
to in the preceding clauses (i), (ii) or (iii) shall be to increase the cost
to the Primary Liquidity Provider of issuing or maintaining its commitment or
funding or maintaining Advances (which increase in cost shall be determined by
the Primary Liquidity Provider's reasonable allocations of the aggregate of
such cost increases resulting from such event), then, upon demand by the
Primary Liquidity Provider ), the Borrower shall pay, or cause to be paid, to
the Primary Liquidity Provider, from time to time as specified by the Primary
Liquidity Provider, additional amounts which shall be sufficient to compensate
the Primary Liquidity Provider for such increased cost; provided that if such
demand for payment is made more than 180 days after a Responsible Officer of
the Primary Liquidity Provider obtains actual knowledge of any event referred
to in clause (i), (ii) or (iii) above period, the Borrower shall be obligated
to pay such additional amounts only with respect to such increased cost
actually incurred or effected on or after the 180th day prior to the date of
such demand. A certificate as to such increased cost incurred by the Primary
Liquidity Provider as a result of any event mentioned in clauses (i), (ii) or
(iii) above, prepared in reasonable detail and submitted by the Primary
Liquidity Provider to the Borrower, shall be conclusive evidence of the amount
owed under this Section, absent manifest error.

          The Primary Liquidity Provider agrees to use reasonable efforts
(consistent with its internal policy and legal and regulatory restrictions) to
change the jurisdiction of its Lending Office if making such change would
avoid the need for, or reduce the amount of, any amount payable under this
Section 3.01 that may thereafter accrue and would not, in the reasonable
judgment of the Primary Liquidity Provider, be otherwise disadvantageous to
the Primary Liquidity Provider.

          Section 3.02. Capital Adequacy. If the Primary Liquidity Provider
shall determine that the adoption of any applicable law, rule or regulation
regarding capital adequacy, or any change therein, or any change in the
interpretation or administration thereof by any

                                      13
<PAGE>

governmental authority, central bank or comparable agency charged with the
interpretation or administration thereof, or compliance by the Primary
Liquidity Provider (or its head office) with any request or directive
regarding capital adequacy (whether or not having the force of law) of any
such authority, central bank or comparable agency, in each case after the date
hereof, has the effect of reducing the rate of return on the Primary Liquidity
Provider's capital as a consequence of issuing or maintaining its commitment
hereunder or its funding or maintaining Advances to a level below that which
the Primary Liquidity Provider could have achieved but for such adoption,
change or compliance (taking into consideration the Primary Liquidity
Provider's policies with respect to capital adequacy) by an amount deemed by
the Primary Liquidity Provider to be material, then, upon demand by the
Primary Liquidity Provider, the Borrower shall pay to the Primary Liquidity
Provider, from time to time as specified by the Primary Liquidity Provider,
additional amounts which shall be sufficient to compensate the Primary
Liquidity Provider for such reduction in respect of issuing or maintaining its
commitment hereunder or its funding or maintaining Advances. A certificate as
to any such additional amount describing the event which has the effect of
reducing the rate of return on the Primary Liquidity Provider's capital,
prepared in reasonable detail and submitted by the Primary Liquidity Provider
to the Borrower, shall be conclusive evidence of the amount owed under this
Section, absent manifest error.

          The Primary Liquidity Provider agrees to use reasonable efforts
(consistent with its internal policy and legal and regulatory restrictions) to
change the jurisdiction of its Lending Office if making such change would
avoid the need for, or reduce the amount of, any amount payable under this
Section 3.02 that may thereafter accrue and would not, in the reasonable
judgment of the Primary Liquidity Provider, be otherwise disadvantageous to
the Primary Liquidity Provider.

          Section 3.03. Payments Free of Deductions. (a) All payments made by
the Borrower under this Agreement and the Fee Letter shall be made free and
clear of, and without reduction for or on account of, any present or future
stamp or other taxes, levies, imposts, duties, charges, fees, deductions,
withholdings, restrictions or conditions of any nature whatsoever now or
hereafter imposed, levied, collected, withheld or assessed, excluding Excluded
Taxes (such non-excluded taxes being referred to herein, collectively, as
"Non-Excluded Taxes" and, individually, as a "Non-Excluded Tax"). If any
Non-Excluded Taxes are required to be withheld from any amounts payable to the
Primary Liquidity Provider under this Agreement, the amounts so payable to the
Primary Liquidity Provider shall be increased to the extent necessary to yield
to the Primary Liquidity Provider (after payment of all Non-Excluded Taxes and
taxes imposed on the receipt of such increase) interest or any other such
amounts payable under this Agreement or any amounts payable under the Fee
Letter, as the case may be at the rates or in the amounts specified in this
Agreement or the Fee Letter, as the case may be. The Primary Liquidity
Provider agrees to use reasonable efforts (consistent with its internal policy
and legal and regulatory restrictions) to change the jurisdiction of its
Lending Office if making such change would avoid the need for, or reduce the
amount of, any such additional amounts that may thereafter accrue and would
not, in the reasonable judgment of the Primary Liquidity Provider, be
otherwise disadvantageous to the Primary Liquidity Provider. On or prior to
the Closing Date, the Primary Liquidity Provider agrees to provide to the
Borrower (i) two copies of a properly completed United States Internal Revenue
Service Form W-8BEN or Form W-8ECI, as appropriate, or other applicable form,
certificate or document prescribed by the Internal Revenue

                                      14
<PAGE>

Service certifying, in each case, the Primary Liquidity Provider's entitlement
to a complete exemption from United States federal withholding tax in respect
to any and all payments to be made hereunder, and (ii) agree to provide the
Borrower a new Form W-8BEN or Form W-8ECI, as appropriate, (A) on or before
the date that any such form expires or becomes obsolete or (B) after the
occurrence of any event requiring a change in the most recent form previously
delivered by it and prior to the immediately following due date of any payment
by the Borrower hereunder, certifying in the case of a Form W-8ECI or Form
W-8BEN that the Primary Liquidity Provider is exempt from or entitled to a
reduced rate of United States federal withholding tax on payments under this
Agreement.

          (b) All payments (including, without limitation, Advances) made by
the Primary Liquidity Provider under this Agreement shall be made free and
clear of, and without reduction for or on account of, any Taxes. If any Taxes
are required to be withheld or deducted from any amounts payable to the
Borrower under this Agreement, the Primary Liquidity Provider shall (i) within
the time prescribed therefor by applicable law pay to the appropriate
governmental or taxing authority the full amount of any such Taxes (and any
additional Taxes in respect of the payment required under clause (ii) hereof)
and make such reports or returns in connection therewith at the time or times
and in the manner prescribed by applicable law, and (ii) pay to the Borrower
an additional amount which (after deduction of all such Taxes) will be
sufficient to yield to the Borrower the full amount which would have been
received by it had no such withholding or deduction been made. Within 30 days
after the date of each payment hereunder, the Primary Liquidity Provider shall
furnish to the Borrower the original or a certified copy of (or other
documentary evidence of) the payment of the Taxes applicable to such payment.

          (c) If any exemption from, or reduction in the rate of, any Taxes is
reasonably available to the Borrower to establish that payments under this
Agreement are exempt from (or entitled to a reduced rate of) tax, the Borrower
shall deliver to the Primary Liquidity Provider such form or forms and such
other evidence of the eligibility of the Borrower for such exemption or
reduction as the Primary Liquidity Provider may reasonably identify to the
Borrower as being required as a condition to exemption from, or reduction in
the rate of, any Taxes.

          Section 3.04. Payments. The Borrower shall make or cause to be made
each payment to the Primary Liquidity Provider under this Agreement so as to
cause the same to be received by the Primary Liquidity Provider not later than
1:00 P.M. (New York City time) on the day when due. The Borrower shall make
all such payments in lawful money of the United States of America, to the
Primary Liquidity Provider in immediately available funds, by wire transfer to
Westdeutsche Landesbank Girozentrale, New York Branch, Account No.
920-1-060663, Reference: GSF Transportation Northwest EETC 2002-1.

          Section 3.05. Computations. All computations of interest based on
the Base Rate shall be made on the basis of a year of 365 or 366 days, as the
case may be, and all computations of interest based on the LIBOR Rate shall be
made on the basis of a year of 360 days, in each case for the actual number of
days (including the first day but excluding the last day) occurring in the
period for which such interest is payable.

          Section 3.06. Payment on Non-Business Days. Whenever any payment to
be made hereunder shall be stated to be due on a day other than a Business
Day, such payment shall

                                      15
<PAGE>

be made on the next succeeding Business Day and no additional interest shall
be due as a result (and if so made, shall be deemed to have been made when
due). If any payment in respect of interest on an Advance is so deferred to
the next succeeding Business Day, such deferral shall not delay the
commencement of the next Interest Period for such Advance (if such Advance is
a LIBOR Advance) or reduce the number of days for which interest will be
payable on such Advance on the next interest payment date for such Advance.

          Section 3.07. Interest. (a) Subject to Section 2.09, the Borrower
shall pay, or shall cause to be paid, without duplication, interest on (i) the
unpaid principal amount of each Advance from and including the date of such
Advance (or, in the case of an Applied Provider Advance, from and including
the date on which the amount thereof was withdrawn from the Class C-2 Primary
Cash Collateral Account to pay interest on the Class C-2 Certificates) to but
excluding the date such principal amount shall be paid in full (or, in the
case of an Applied Provider Advance, the date on which the Class C-2 Primary
Cash Collateral Account is fully replenished in respect of such Advance) and
(ii) any other amount due hereunder (whether fees, commissions, expenses or
other amounts or, to the extent permitted by law, installments of interest on
Advances or any such other amount) which is not paid when due (whether at
stated maturity, by acceleration or otherwise) from and including the due date
thereof to but excluding the date such amount is paid in full, in each such
case, at a fluctuating interest rate per annum for each day equal to the
Applicable Liquidity Rate (as defined below) for such Advance or such other
amount as in effect for such day, but in no event at a rate per annum greater
than the maximum rate permitted by applicable law; provided, however, that, if
at any time the otherwise applicable interest rate as set forth in this
Section 3.07 shall exceed the maximum rate permitted by applicable law, then
any subsequent reduction in such interest rate will not reduce the rate of
interest payable pursuant to this Section 3.07 below the maximum rate
permitted by applicable law until the total amount of interest accrued equals
the amount of interest that would have accrued if such otherwise applicable
interest rate as set forth in this Section 3.07 had at all times been in
effect.

          (b) Each Advance will be either a Base Rate Advance or a LIBOR
Advance as provided in this Section. Each such Advance will be a Base Rate
Advance for the period from the date of its borrowing to (but excluding) the
third Business Day following the Primary Liquidity Provider's receipt of the
Notice of Borrowing for such Advance. Thereafter, such Advance shall be a
LIBOR Advance; provided that (i) an Applied Provider Advance shall always be a
LIBOR Advance unless the Borrower elects otherwise and (ii) the Borrower (at
the direction of the Controlling Party, so long as the Primary Liquidity
Provider is not the Controlling Party) may (x) convert the Final Advance into
a Base Rate Advance on the last day of an Interest Period for such Advance by
giving the Primary Liquidity Provider no less than four Business Days' prior
written notice of such election or (y) elect to maintain the Final Advance as
a Base Rate Advance by not requesting a conversion of the Final Advance to a
LIBOR Advance under Clause (5) of the applicable Notice of Borrowing (or, if
such Final Advance is deemed to have been made, without delivery of a Notice
of Borrowing pursuant to Section 2.06, by requesting, prior to 11:00 A.M. (New
York City time) on the first Business Day immediately following the Borrower's
receipt of the applicable Termination Notice, that such Final Advance not be
converted from a Base Rate Advance to a LIBOR Advance).

                                      16
<PAGE>

          (c) Each LIBOR Advance shall bear interest during each Interest
Period at a rate per annum equal to the LIBOR Rate for such Interest Period
plus the Applicable Margin for such LIBOR Advance, payable in arrears on the
last day of such Interest Period and, in the event of the payment of principal
of such LIBOR Advance on a day other than such last day, on the date of such
payment (to the extent of interest accrued on the amount of principal repaid).

          (d) Each Base Rate Advance shall bear interest at a rate per annum
equal to the Base Rate plus the Applicable Margin for such Base Rate Advance,
payable in arrears on each Regular Distribution Date and, in the event of the
payment of principal of such Base Rate Advance on a day other than a Regular
Distribution Date, on the date of such payment (to the extent of interest
accrued on the amount of principal repaid).

          (e) [RESERVED]

          (f) Each amount not paid when due hereunder (whether fees,
commissions, expenses or other amounts or, to the extent permitted by
applicable law, installments of interest on Advances but excluding Advances)
shall bear interest at a rate per annum equal to the Base Rate plus 2.5% until
paid.

          (g) Each change in the Base Rate shall become effective immediately.
The rates of interest specified in this Section 3.07 with respect to any
Advance or other amount shall be referred to as the "Applicable Liquidity
Rate".

          Section 3.08. Replacement of Borrower. From time to time and subject
to the successor Borrower's meeting the eligibility requirements set forth in
Section 6.9 of the Intercreditor Agreement applicable to the Subordination
Agent, upon the effective date and time specified in a written and completed
Notice of Replacement Subordination Agent in substantially the form of Annex
VI attached hereto (a "Notice of Replacement Subordination Agent") delivered
to the Primary Liquidity Provider by the then Borrower, the successor Borrower
designated therein shall be substituted as the Borrower for all purposes
hereunder.

          Section 3.09. Funding Loss Indemnification. The Borrower shall pay
to the Primary Liquidity Provider, upon the request of the Primary Liquidity
Provider, such amount or amounts as shall be sufficient (in the reasonable
opinion of the Primary Liquidity Provider) to compensate it for any loss,
cost, or expense incurred as a result of the liquidation or redeployment of
deposits or other funds acquired by the Primary Liquidity Provider to fund or
maintain any LIBOR Advance (but excluding loss of anticipated profits)
incurred as a result of:

               (1) Any repayment of a LIBOR Advance on a date other than the
          last day of the Interest Period for such Advance; or

               (2) Any failure by the Borrower to borrow a LIBOR Advance on
          the date for borrowing specified in the relevant notice under
          Section 2.02.

          Section 3.10. Illegality. Notwithstanding any other provision in
this Agreement, if any change in any applicable law, rule or regulation, or
any change in the interpretation or administration thereof by any governmental
authority, central bank or comparable agency charged with the interpretation
or administration thereof, or compliance by the Primary Liquidity

                                      17
<PAGE>

Provider (or its Lending Office) with any request or directive (whether or not
having the force of law) of any such authority, central bank or comparable
agency shall make it unlawful or impossible for the Primary Liquidity Provider
(or its Lending Office) to maintain or fund its LIBOR Advances, then upon
notice to the Borrower by the Primary Liquidity Provider, the outstanding
principal amount of the LIBOR Advances shall be converted to Base Rate
Advances (a) immediately upon demand of the Primary Liquidity Provider, if
such change or compliance with such request, in the judgment of the Primary
Liquidity Provider, requires immediate repayment; or (b) at the expiration of
the last Interest Period to expire before the effective date of any such
change or request.

                                  ARTICLE IV

                             CONDITIONS PRECEDENT

          Section 4.01. Conditions Precedent to Effectiveness of Section 2.01.
Section 2.01 of this Agreement shall become effective on and as of the first
date (the "Effective Date") on which the following conditions precedent have
been satisfied or waived:

          (a) The Primary Liquidity Provider shall have received on or before
     the Closing Date each of the following, and in the case of each document
     delivered pursuant to paragraphs (i), (ii) and (iii), each in form and
     substance satisfactory to the Primary Liquidity Provider:

               (i) This Agreement and the Fee Letter duly executed on behalf
          of the Borrower and acknowledged by Northwest;

               (ii) The Intercreditor Agreement duly executed on behalf of
          each of the parties thereto;

               (iii) Fully executed copies of each of the Operative Agreements
          executed and delivered on or before the Closing Date (other than
          this Agreement, the Fee Letter and the Intercreditor Agreement);

               (iv) A copy of the Prospectus Supplement and specimen copies of
          the Class C-2 Certificates;

               (v) An executed copy of each document, instrument, certificate
          and opinion delivered on or before the Closing Date pursuant to the
          Class C-2 Trust Agreement, the Intercreditor Agreement and the other
          Operative Agreements (in the case of each such opinion, other than
          the opinion of counsel for the Underwriters, either addressed to the
          Primary Liquidity Provider or accompanied by a letter from the
          counsel rendering such opinion to the effect that the Primary
          Liquidity Provider is entitled to rely on such opinion as of its
          date as if it were addressed to the Primary Liquidity Provider);

               (vi) Evidence that there shall have been made and shall be in
          full force and effect, all filings, recordings and/or registrations,
          and there shall have been given or taken any notice or other similar
          action as may be reasonably necessary

                                      18
<PAGE>

          or, to the extent reasonably requested by the Primary Liquidity
          Provider, reasonably advisable, in order to establish, perfect,
          protect and preserve the right, title and interest, remedies,
          powers, privileges, liens and security interests of, or for the
          benefit of, the Trustees, the Borrower and the Primary Liquidity
          Provider created by the Operative Agreements executed and delivered
          on or prior to the Closing Date;

               (vii) A letter from Northwest Airlines Corporation, pursuant to
          which (i) Northwest Airlines Corporation agrees to provide copies of
          quarterly financial statements and audited annual financial
          statements to the Primary Liquidity Provider, and such other
          information as the Primary Liquidity Provider shall reasonably
          request with respect to the transactions contemplated by the
          Operative Agreements, in each case, only to the extent that
          Northwest Airlines Corporation is obligated to provide such
          information pursuant to Section 16 of the Leases (related to Leased
          Aircraft) or the corresponding section of the Indentures (related to
          Owned Aircraft) to the parties thereto, and (ii) Northwest Airlines
          Corporation agrees to allow the Primary Liquidity Provider to
          inspect its books and records regarding such transactions, and to
          discuss such transactions with officers and employees of Northwest
          Airlines Corporation; and

               (viii) Such other documents, instruments, opinions and
          approvals pertaining to the transactions contemplated hereby or by
          the other Operative Agreements as the Primary Liquidity Provider
          shall have reasonably requested.

          (b) The following statement shall be true on and as of the Effective
     Date: no event has occurred and is continuing, or would result from the
     entering into of this Agreement or the making of any Advance, which
     constitutes a Liquidity Event of Default.

          (c) The Primary Liquidity Provider shall have received payment in
     full of all fees and other sums required to be paid to or for the account
     of the Primary Liquidity Provider on or prior to the Effective Date.

          (d) All conditions precedent to the issuance of the Certificates
     under the Trust Agreements shall have been satisfied or waived, all
     conditions precedent to the effectiveness of the other Liquidity
     Facilities shall have been satisfied or waived, and all conditions
     precedent to the purchase of the Class G-1, Class G-2, Class C-1 and
     Class C-2 Certificates by the Underwriters under the Underwriting
     Agreement shall have been satisfied (unless any of such conditions
     precedent shall have been waived by the Underwriters).

          (e) The Borrower shall have received a certificate, dated the date
     hereof, signed by a duly authorized representative of the Primary
     Liquidity Provider, certifying that all conditions precedent to the
     effectiveness of Section 2.01 have been satisfied or waived.

          Section 4.02. Conditions Precedent to Borrowing. The obligation of
the Primary Liquidity Provider to make an Advance on the occasion of each
Borrowing shall be subject to the conditions precedent that the Effective Date
shall have occurred and, prior to the date of such

                                      19
<PAGE>

Borrowing, the Borrower shall have delivered a Notice of Borrowing which
conforms to the terms and conditions of this Agreement and has been completed
as may be required by the relevant form of the Notice of Borrowing for the
type of Advances requested.

                                   ARTICLE V

                                   COVENANTS

          Section 5.01. Affirmative Covenants of the Borrower. So long as any
Advance shall remain unpaid or the Primary Liquidity Provider shall have any
Maximum Commitment hereunder or the Borrower shall have any obligation to pay
any amount to the Primary Liquidity Provider hereunder, the Borrower will,
unless the Primary Liquidity Provider shall otherwise consent in writing:

          (a) Performance of This and Other Agreements. Punctually pay or
     cause to be paid all amounts payable by it under this Agreement and the
     other Operative Agreements and observe and perform in all material
     respects the conditions, covenants and requirements applicable to it
     contained in this Agreement and the other Operative Agreements.

          (b) Reporting Requirements. Furnish to the Primary Liquidity
     Provider with reasonable promptness, such other information and data with
     respect to the transactions contemplated by the Operative Agreements as
     from time to time may be reasonably requested by the Primary Liquidity
     Provider; and permit the Primary Liquidity Provider, upon reasonable
     notice, to inspect the Borrower's books and records with respect to such
     transactions and to meet with officers and employees of the Borrower to
     discuss such transactions.

          (c) Certain Operative Agreements. Furnish to the Primary Liquidity
     Provider with reasonable promptness, such Operative Agreements entered
     into after the date hereof as from time to time may be reasonably
     requested by the Primary Liquidity Provider.

          Section 5.02. Negative Covenants of the Borrower. So long as any
Advance shall remain unpaid or the Primary Liquidity Provider shall have any
Maximum Commitment hereunder or the Borrower shall have any obligation to pay
any amount to the Primary Liquidity Provider hereunder, the Borrower will not
appoint or permit or suffer to be appointed any successor Borrower without the
prior written consent of the Primary Liquidity Provider, which consent shall
not be unreasonably withheld or delayed.

                                  ARTICLE VI

                          LIQUIDITY EVENTS OF DEFAULT

          Section 6.01. Liquidity Events of Default. If (a) any Liquidity
Event of Default has occurred and is continuing and (b) there is a Performing
Note Deficiency, the Primary Liquidity Provider may, in its discretion,
deliver to the Borrower a Termination Notice, the effect of which shall be to
cause (i) this Agreement to expire on the fifth Business Day after the date on

                                      20
<PAGE>

which such Termination Notice is received by the Borrower, (ii) the Borrower
to promptly request, and the Primary Liquidity Provider to promptly make, a
Final Advance in accordance with Section 2.02(d) hereof and Section 3.6(i) of
the Intercreditor Agreement, (iii) all other outstanding Advances to be
automatically converted into Final Advances for purposes of determining the
Applicable Liquidity Rate for interest payable thereon, and (iv) subject to
Sections 2.07 and 2.09 hereof, all Advances (including, without limitation,
any Provider Advance and Applied Provider Advance), any accrued interest
thereon and any other amounts outstanding hereunder to become immediately due
and payable to the Primary Liquidity Provider.

                                 ARTICLE VII

                                 MISCELLANEOUS

          Section 7.01. Amendments, Etc. No amendment or waiver of any
provision of this Agreement, nor consent to any departure by the Borrower
therefrom, shall in any event be effective unless the same shall be in writing
and signed by the Primary Liquidity Provider, and, in the case of an amendment
or of a waiver by the Borrower, the Borrower, and then such waiver or consent
shall be effective only in the specific instance and for the specific purpose
for which given.

          Section 7.02. Notices, Etc. Except as otherwise expressly provided
herein, all notices and other communications provided for hereunder shall be
in writing (including telecopier and mailed or delivered or sent by
telecopier):

Borrower:                   STATE STREET BANK AND TRUST COMPANY
                            2 Avenue de Lafayette
                            Boston, Massachusetts  02111
                            Attention:  Corporate Trust Administration
                            Telecopy:   (617) 988-9514

Primary Liquidity Provider: WESTDEUTSCHE LANDESBANK GIROZENTRALE
                            1211 Avenue of the Americas
                            New York, New York 10036
                            Attention: Loan Administration - Suzy Kong

                            Telephone: (212) 597-1319
                            Telecopy:  (212) 302-7946

                            with a copy of any Notice of Borrowing to:

                            WESTDEUTSCHE LANDESBANK GIROZENTRALE
                            1211 Avenue of the Americas
                            New York, New York 10036
                            Attention: Transportation Finance - Brigitte Thieme

                            Telephone: (212) 852-6111

                                      21
<PAGE>

                            Telecopy:  (212) 597-5419

or, as to each of the foregoing, at such other address as shall be designated
by such Person in a written notice to the others. All such notices and
communications shall be effective (i) if given by telecopier, when transmitted
to the telecopier number specified above, (ii) if given by mail, when
deposited in the mails addressed as specified above, and (iii) if given by
other means, when delivered at the address specified above, except that
written notices to the Primary Liquidity Provider pursuant to the provisions
of Articles II and III hereof shall not be effective until received by the
Primary Liquidity Provider. A copy of all notices delivered hereunder to
either party shall in addition be delivered to each of the parties to the
Participation Agreements at their respective addresses set forth therein.

          Section 7.03. No Waiver; Remedies. No failure on the part of the
Primary Liquidity Provider to exercise, and no delay in exercising, any right
under this Agreement shall operate as a waiver thereof; nor shall any single
or partial exercise of any right under this Agreement 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 7.04. Further Assurances. The Borrower agrees to do such
further acts and things and to execute and deliver to the Primary Liquidity
Provider such additional assignments, agreements, powers and instruments as
the Primary Liquidity Provider may reasonably require or deem advisable to
carry into effect the purposes of this Agreement and the other Operative
Agreements or to better assure and confirm unto the Primary Liquidity Provider
its rights, powers and remedies hereunder and under the other Operative
Agreements.

          Section 7.05. Indemnification; Survival of Certain Provisions. The
Primary Liquidity Provider shall be indemnified hereunder to the extent and in
the manner described in Section 7(c) of the Participation Agreements. In
addition, the Borrower agrees to indemnify, protect, defend and hold harmless
the Primary Liquidity Provider from, against and in respect of, and shall pay
on demand, all Expenses of any kind or nature whatsoever (other than any
Expenses of the nature described in Sections 3.01, 3.02 or 7.07 hereof or in
the Fee Letter applicable to this Agreement (regardless of whether indemnified
against pursuant to said Sections or in such Fee Letter)), that may be
imposed, incurred by or asserted against any Liquidity Indemnitee, in any way
relating to, resulting from, or arising out of or in connection with any
action, suit or proceeding by any third party against such Liquidity
Indemnitee and relating to this Agreement, the Fee Letter applicable to this
Agreement, the Intercreditor Agreement or any Financing Agreement; provided,
however, that the Borrower shall not be required to indemnify, protect, defend
and hold harmless any Liquidity Indemnitee in respect of any Expense of such
Liquidity Indemnitee to the extent such Expense is (i) attributable to the
gross negligence or willful misconduct of such Liquidity Indemnitee or any
other Liquidity Indemnitee, (ii) ordinary and usual operating overhead
expense, or (iii) attributable to the failure by such Liquidity Indemnitee or
any other Liquidity Indemnitee to perform or observe any agreement, covenant
or condition on its part to be performed or observed in this Agreement, the
Fee Letter applicable to this Agreement, the Intercreditor Agreement or any
other Operative Agreement to which it is a party. The indemnities contained in
Section 7(c) of the Participation

                                      22
<PAGE>

Agreements, and the provisions of Sections 3.01, 3.02, 3.03, 3.09, 7.05 and
7.07 hereof, shall survive the termination of this Agreement.

          Section 7.06. Liability of the Primary Liquidity Provider. (a)
Neither the Primary Liquidity Provider nor any of its officers, employees,
directors or Affiliates shall be liable or responsible for: (i) the use which
may be made of the Advances or any acts or omissions of the Borrower or any
beneficiary or transferee in connection therewith; (ii) the validity,
sufficiency or genuineness of documents, or of any endorsement thereon, even
if such documents should prove to be in any or all respects invalid,
insufficient, fraudulent or forged; or (iii) the making of Advances by the
Primary Liquidity Provider against delivery of a Notice of Borrowing and other
documents which do not comply with the terms hereof; provided, however, that
the Borrower shall have a claim against the Primary Liquidity Provider, and
the Primary Liquidity Provider shall be liable to the Borrower, to the extent
of any damages suffered by the Borrower which were the result of (A) the
Primary Liquidity Provider's willful misconduct or negligence in determining
whether documents presented hereunder comply with the terms hereof, or (B) any
breach by the Primary Liquidity Provider of any of the terms of this
Agreement, including, but not limited to, the Primary Liquidity Provider's
failure to make lawful payment hereunder after the delivery to it by the
Borrower of a Notice of Borrowing strictly complying with the terms and
conditions hereof.

          (b) Neither the Primary Liquidity Provider nor any of its officers,
employees, directors or affiliates shall be liable or responsible in any
respect for (i) any error, omission, interruption or delay in transmission,
dispatch or delivery of any message or advice, however transmitted, in
connection with this Agreement or any Notice of Borrowing delivered hereunder,
or (ii) any action, inaction or omission which may be taken by it in good
faith, absent willful misconduct or negligence (in which event the extent of
the Primary Liquidity Provider's potential liability to the Borrower shall be
limited as set forth in the immediately preceding paragraph), in connection
with this Agreement or any Notice of Borrowing.

          Section 7.07. Costs, Expenses and Taxes. The Borrower agrees to pay,
or cause to be paid (A) on the Effective Date and on such later date or dates
on which the Primary Liquidity Provider shall make demand, all reasonable
out-of-pocket costs and expenses (including, without limitation, the
reasonable fees and expenses of outside counsel for the Primary Liquidity
Provider) of the Primary Liquidity Provider in connection with the
preparation, negotiation, execution, delivery, filing and recording of this
Agreement, any other Operative Agreement and any other documents which may be
delivered in connection with this Agreement and (B) on demand, all reasonable
costs and expenses (including reasonable counsel fees and expenses) of the
Primary Liquidity Provider in connection with (i) the enforcement of this
Agreement or any other Operative Agreement, (ii) the modification or amendment
of, or supplement to, this Agreement or any other Operative Agreement or such
other documents which may be delivered in connection herewith or therewith
(whether or not the same shall become effective) or (iii) any action or
proceeding relating to any order, injunction, or other process or decree
restraining or seeking to restrain the Primary Liquidity Provider from paying
any amount under this Agreement, the Intercreditor Agreement or any other
Operative Agreement or otherwise affecting the application of funds in the
Class C-2 Primary Cash Collateral Account. In addition, the Borrower shall pay
any and all recording, stamp and other similar taxes and fees payable or
determined to be payable in connection with the execution, delivery, filing
and

                                      23
<PAGE>

recording of this Agreement, any other Operative Agreement and such other
documents, and agrees to save the Primary Liquidity Provider harmless from and
against any and all liabilities with respect to or resulting from any delay in
paying or omission to pay such taxes or fees.

          Section 7.08. Binding Effect; Participations. (a) This Agreement
shall be binding upon and inure to the benefit of the Borrower and the Primary
Liquidity Provider and their respective successors and assigns, except that
neither the Primary Liquidity Provider (except as otherwise provided in this
Section 7.08) nor (except as contemplated by Section 3.08) the Borrower shall
have the right to assign its rights or obligations hereunder or any interest
herein without the prior written consent of the other party, subject to the
requirements of Section 7.08(b). The Primary Liquidity Provider may grant
participations herein or in any of its rights hereunder (including, without
limitation, funded participations and participations in rights to receive
interest payments hereunder) and under the other Operative Agreements to such
Persons as the Primary Liquidity Provider may in its sole discretion select
(but excluding Northwest and any of its Affiliates), subject to the
requirements of Section 7.08(b). No such granting of participations by the
Primary Liquidity Provider, however, will relieve the Primary Liquidity
Provider of its obligations hereunder. In connection with any participation or
any proposed participation, the Primary Liquidity Provider may disclose to the
participant or the proposed participant any information that the Borrower is
required to deliver or to disclose to the Primary Liquidity Provider pursuant
to this Agreement. The Borrower acknowledges and agrees that the Primary
Liquidity Provider's source of funds may derive in part from its participants.
Accordingly, references in this Agreement and the other Operative Agreements
to determinations, reserve and capital adequacy requirements, increased costs,
reduced receipts, additional amounts due pursuant to Section 3.03 and the like
as they pertain to the Primary Liquidity Provider shall be deemed also to
include those of each of its participants (subject, in each case, to the
maximum amount that would have been incurred by or attributable to the Primary
Liquidity Provider directly if the Primary Liquidity Provider, rather than the
participant, had held the interest participated).

          (b) If, pursuant to subsection (a) above, the Primary Liquidity
Provider sells any participation in this Agreement to any bank or other entity
(each, a "Transferee"), then, concurrently with the effectiveness of such
participation, the Transferee shall (i) represent to the Primary Liquidity
Provider (for the benefit of the Primary Liquidity Provider and the Borrower)
either (A) that it is incorporated under the laws of the United States or a
state thereof or (B) that under applicable law and treaties, no taxes will be
required to be withheld with respect to any payments to be made to such
Transferee in respect of this Agreement, (ii) furnish to the Primary Liquidity
Provider and the Borrower either (x) a statement that it is incorporated under
the laws of the United States or a state thereof or (y) if it is not so
incorporated, two copies of a properly completed United States Internal
Revenue Service Form W-8BEN or Form W-8ECI, as appropriate, or other
applicable form, certificate or document prescribed by the Internal Revenue
Service certifying, in each case, such Transferee's entitlement to a complete
exemption from United States federal withholding tax in respect to any and all
payments to be made hereunder, and (iii) agree (for the benefit of the Primary
Liquidity Provider and the Borrower) to provide the Primary Liquidity Provider
and the Borrower a new Form W-8BEN or Form W-8ECI, as appropriate, (A) on or
before the date that any such form expires or becomes obsolete or (B) after
the occurrence of any event requiring a change in the most recent form
previously delivered by it and prior to the immediately following due date of
any payment by the Borrower hereunder,

                                      24
<PAGE>

certifying in the case of a Form W-8ECI or Form W-8BEN that such Transferee is
entitled to a complete exemption from United States federal withholding tax on
payments under this Agreement. Unless the Borrower has received forms or other
documents reasonably satisfactory to it (and required by applicable law)
indicating that payments hereunder are not subject to United States federal
withholding tax, the Borrower will withhold taxes as required by law from such
payments at the applicable statutory rate.

          (c) Notwithstanding the other provisions of this Section 7.08, the
Primary Liquidity Provider may assign and pledge all or any portion of the
Advances owing to it to any Federal Reserve Bank or the United States Treasury
as collateral security pursuant to Regulation A of the Board of Governors of
the Federal Reserve System and any Operating Circular issued by such Federal
Reserve Bank, provided that any payment in respect of such assigned Advances
made by the Borrower to the Primary Liquidity Provider in accordance with the
terms of this Agreement shall satisfy the Borrower's obligations hereunder in
respect of such assigned Advance to the extent of such payment. No such
assignment shall release the Primary Liquidity Provider from its obligations
hereunder.

          Section 7.09. Severability. Any provision of this Agreement which is
prohibited, unenforceable or not authorized in any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such prohibition,
unenforceability or non-authorization without invalidating the remaining
provisions hereof or affecting the validity, enforceability or legality of
such provision in any other jurisdiction.

          Section 7.10. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

          Section 7.11. Submission to Jurisdiction; Waiver of Jury Trial;
Waiver of Immunity. (a) Each of the parties hereto hereby irrevocably and
unconditionally:

               (i) submits for itself and its property in any legal action or
          proceeding relating to this Agreement or any other Operative
          Agreement, or for recognition and enforcement of any judgment in
          respect hereof or thereof, to the nonexclusive general jurisdiction
          of the courts of the State of New York, the courts of the United
          States of America for the Southern District of New York, and the
          appellate courts from any thereof;

               (ii) consents that any such action or proceeding may be brought
          in such courts, and waives any objection that it may now or
          hereafter have to the venue of any such action or proceeding in any
          such court or that such action or proceeding was brought in an
          inconvenient court and agrees not to plead or claim the same;

               (iii) agrees that service of process in any such action or
          proceeding may be effected by mailing a copy thereof by registered
          or certified mail (or any substantially similar form and mail),
          postage prepaid, to each party hereto at its

                                      25
<PAGE>

          address set forth in Section 7.02 hereof, or at such other address
          of which the Primary Liquidity Provider shall have been notified
          pursuant thereto; and

               (iv) agrees that nothing herein shall affect the right to
          effect service of process in any other manner permitted by law or
          shall limit the right to sue in any other jurisdiction.

          (b) THE BORROWER AND THE PRIMARY LIQUIDITY PROVIDER EACH HEREBY
AGREE TO WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE
OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY DEALINGS BETWEEN
THEM RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT AND THE RELATIONSHIP
THAT IS BEING ESTABLISHED, including, without limitation, contract claims,
tort claims, breach of duty claims and all other common law and statutory
claims. The Borrower and the Primary Liquidity Provider each warrant and
represent that it has reviewed this waiver with its legal counsel, and that it
knowingly and voluntarily waives its jury trial rights following consultation
with such legal counsel. THIS WAIVER IS IRREVOCABLE, AND CANNOT BE MODIFIED
EITHER ORALLY OR IN WRITING, AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT
AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT.

          (c) The Primary Liquidity Provider hereby waives any immunity it may
have from the jurisdiction of the courts of the United States or of any State
and waives any immunity any of its properties located in the United States may
have from attachment or execution upon a judgment entered by any such court
under the United Sates Foreign Sovereign Immunities Act of 1976 or any similar
successor legislation.

          Section 7.12. Execution in Counterparts. This Agreement may be
executed in any number of counterparts and by different parties hereto on
separate counterparts, each of which counterparts, when so executed and
delivered, shall be deemed to be an original and all of which counterparts,
taken together, shall constitute but one and the same Agreement.

          Section 7.13. Entirety. This Agreement, the Intercreditor Agreement
and the other Operative Agreements to which the Primary Liquidity Provider is
a party constitute the entire agreement of the parties hereto with respect to
the subject matter hereof and supersedes all prior understandings and
agreements of such parties.

          Section 7.14. Headings. Section headings in this Agreement are
included herein for convenience of reference only and shall not constitute a
part of this Agreement for any other purpose.

          Section 7.15. PRIMARY LIQUIDITY PROVIDER'S OBLIGATION TO MAKE
ADVANCES. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, THE OBLIGATIONS OF
THE PRIMARY LIQUIDITY PROVIDER TO MAKE ADVANCES HEREUNDER, AND THE BORROWER'S
RIGHTS TO DELIVER NOTICES OF BORROWING REQUESTING THE MAKING OF ADVANCES
HEREUNDER, SHALL BE

                                      26
<PAGE>

UNCONDITIONAL AND IRREVOCABLE, AND SHALL BE PAID OR PERFORMED, IN EACH CASE
STRICTLY IN ACCORDANCE WITH THE TERMS OF THIS AGREEMENT.

                                      27
<PAGE>

          IN WITNESS WHEREOF, the parties have caused this Agreement to be
duly executed and delivered by their respective officers thereunto duly
authorized as of the date first set forth above.

                                 STATE STREET BANK AND TRUST COMPANY,
                                     not in its individual capacity but solely
                                     as Subordination Agent, as agent and
                                     trustee for the Class C-2 Trustee, as
                                     Borrower

                                 By:    /s/ Kenneth R. Ring
                                    ______________________________________
                                    Name:   Kenneth R. Ring
                                    Title:  Assistant Vice President

                                 WESTDEUTSCHE LANDESBANK
                                 GIROZENTRALE, NEW YORK BRANCH, as
                                 Primary Liquidity Provider

                                 By:_______________________________________
                                    Name:
                                    Title:

                                 By:_______________________________________
                                    Name:
                                    Title:

                                      28
<PAGE>

          IN WITNESS WHEREOF, the parties have caused this Agreement to be
duly executed and delivered by their respective officers thereunto duly
authorized as of the date first set forth above.

                                 STATE STREET BANK AND TRUST COMPANY,
                                     not in its individual capacity but solely
                                     as Subordination Agent, as agent and
                                     trustee for the Class C-2 Trustee, as
                                     Borrower

                                 By:_______________________________________
                                    Name:
                                    Title:

                                 WESTDEUTSCHE LANDESBANK
                                 GIROZENTRALE, NEW YORK BRANCH, as
                                 Primary Liquidity Provider

                                 By:   /s/ Brigitte Thieme
                                    _______________________________________
                                    Name:   Brigitte Thieme
                                    Title:  Managing Director

                                 By:  /s/ Alfred Heynen
                                    ______________________________________
                                    Name:   Alfred Heynen
                                    Title:  Associate Director

                                      28
<PAGE>

                                                                    Annex I to
                                                    Revolving Credit Agreement

                     INTEREST ADVANCE NOTICE OF BORROWING

          The undersigned, a duly authorized signatory of the undersigned
borrower (the "Borrower"), hereby certifies to Westdeutsche Landesbank
Girozentrale (the "Primary Liquidity Provider"), with reference to the
Revolving Credit Agreement (2002-1C-2) dated as of August 5, 2002, between the
Borrower and the Primary Liquidity Provider (the "Liquidity Agreement"; the
terms defined therein and not otherwise defined herein being used herein as
therein defined or referenced), that:

               (1) The Borrower is the Subordination Agent under the
          Intercreditor Agreement.

               (2) The Borrower is delivering this Notice of Borrowing for the
          making of an Interest Advance by the Primary Liquidity Provider to
          be used, subject to clause (3)(v) below, for the payment of the
          interest on the Class C-2 Certificates which was payable on
          ____________, ____ (the "Distribution Date") in accordance with the
          terms and provisions of the Class C-2 Trust Agreement and the Class
          C-2 Certificates, which Advance is requested to be made on
          ____________, ____. The Interest Advance should be transferred to
          [name of bank/wire instructions/ABA number] in favor of account
          number [____], reference [____].

               (3) The amount of the Interest Advance requested hereby (i) is
          $_________________, to be applied in respect of the payment of the
          interest which was due and payable on the Class C-2 Certificates on
          the Distribution Date, (ii) does not include any amount with respect
          to the payment of principal of, or Break Amount (if any), Prepayment
          Premium (if any) or any other premium (if any) on, the Class G-1
          Certificates, the Class G-2 Certificates, the Class C-1 Certificates
          or the Class G-1 Certificates, or interest on the Class G-2
          Certificates, Class C-1 Certificates, the Class C-2 Certificates or
          the Class D Certificates, if any, (iii) was computed in accordance
          with the provisions of the Certificates, the Class C-2 Trust
          Agreement and the Intercreditor Agreement (a copy of which
          computation is attached hereto as Schedule I), (iv) does not exceed
          the Maximum Available Commitment on the date hereof, (v) does not
          include any amount of interest which was due and payable on the
          Class C-2 Certificates on such Distribution Date but which remains
          unpaid due to the failure of the Depositary to pay any amount of
          accrued interest on the Deposits on such Distribution Date and (vi)
          has not been and is not the subject of a prior or contemporaneous
          Notice of Borrowing.

               (4) Upon receipt by or on behalf of the Borrower of the amount
          requested hereby, (a) the Borrower will apply the same in accordance
          with the terms of Section 3.6(b) of the Intercreditor Agreement, (b)
          no portion of such amount shall

                                     I-1
<PAGE>

          be applied by the Borrower for any other purpose and (c) no portion
          of such amount until so applied shall be commingled with other funds
          held by the Borrower.

          The Borrower hereby acknowledges that, pursuant to the Liquidity
Agreement, the making of the Interest Advance as requested by this Notice of
Borrowing shall automatically reduce, subject to reinstatement in accordance
with the terms of the Liquidity Agreement, the Maximum Available Commitment by
an amount equal to the amount of the Interest Advance requested to be made
hereby as set forth in clause (i) of paragraph (3) of this Notice of Borrowing
and such reduction shall automatically result in corresponding reductions in
the amounts available to be borrowed pursuant to a subsequent Advance.

          IN WITNESS WHEREOF, the Borrower has executed and delivered this
Notice of Borrowing as of the ____ day of _________, ____.

                               STATE STREET BANK AND TRUST COMPANY,
                                    not in its individual capacity but solely
                                    as Subordination Agent, as Borrower

                               By:_______________________________________
                                  Name:
                                  Title:

                                     I-2
<PAGE>

          SCHEDULE I TO INTEREST ADVANCE NOTICE OF BORROWING

           [Insert Copy of Computations in accordance with Interest
                         Advance Notice of Borrowing]

                                     I-3
<PAGE>

                                                                   Annex II to
                                                    Revolving Credit Agreement

                   NON-EXTENSION ADVANCE NOTICE OF BORROWING

          The undersigned, a duly authorized signatory of the undersigned
subordination agent (the "Borrower"), hereby certifies to Westdeutsche
Landesbank Girozentrale (the "Primary Liquidity Provider"), with reference to
the Revolving Credit Agreement (2002-1C-2) dated as of August 5, 2002, between
the Borrower and the Primary Liquidity Provider (the "Liquidity Agreement";
the terms defined therein and not otherwise defined herein being used herein
as therein defined or referenced), that:

               (1) The Borrower is the Subordination Agent under the
          Intercreditor Agreement.

               (2) The Borrower is delivering this Notice of Borrowing for the
          making of the Non-Extension Advance by the Primary Liquidity
          Provider to be used for the funding of the Class C-2 Primary Cash
          Collateral Account in accordance with Section 3.6(d) of the
          Intercreditor Agreement, which Advance is requested to be made on
          __________, ____. The Non-Extension Advance should be transferred to
          [name of bank/wire instructions/ABA number] in favor of account
          number [___], reference [___].

               (3) The amount of the Non-Extension Advance requested hereby
          (i) is $_________________, which equals the Maximum Available
          Commitment on the date hereof and is to be applied in respect of the
          funding of the Class C-2 Primary Cash Collateral Account in
          accordance with Section 3.6(d) of the Intercreditor Agreement, (ii)
          does not include any amount with respect to the payment of the
          principal of, or Break Amount (if any), Prepayment Premium (if any)
          or any other premium (if any) on, the Class C-2 Certificates, or
          principal of, or interest or Break Amount (if any), Prepayment
          Premium (if any) or any other premium (if any) on, the Class G-1
          Certificates, the Class G-2 Certificates, the Class C-1 Certificates
          or the Class D Certificates, if any, (iii) was computed in
          accordance with the provisions of the Class C-2 Certificates, the
          Class C-2 Trust Agreement and the Intercreditor Agreement (a copy of
          which computation is attached hereto as Schedule I), and (iv) has
          not been and is not the subject of a prior or contemporaneous Notice
          of Borrowing under the Liquidity Agreement.

               (4) Upon receipt by or on behalf of the Borrower of the amount
          requested hereby, (a) the Borrower will deposit such amount in the
          Class C-2 Primary Cash Collateral Account and apply the same in
          accordance with the terms of Section 3.6(d) of the Intercreditor
          Agreement, (b) no portion of such amount shall be applied by the
          Borrower for any other purpose and (c) no portion of such amount
          until so applied shall be commingled with other funds held by the
          Borrower.

          The Borrower hereby acknowledges that, pursuant to the Liquidity
     Agreement, (A) the making of the Non-Extension Advance as requested by
     this Notice of Borrowing

                                     II-1
<PAGE>

     shall automatically and irrevocably terminate the obligation of the
     Primary Liquidity Provider to make further Advances under the Liquidity
     Agreement; and (B) following the making by the Primary Liquidity Provider
     of the Non-Extension Advance requested by this Notice of Borrowing, the
     Borrower shall not be entitled to request any further Advances under the
     Liquidity Agreement.

          IN WITNESS WHEREOF, the Borrower has executed and delivered this
Notice of Borrowing as of the ____ day of _________, ____.

                               STATE STREET BANK AND TRUST COMPANY,
                                    not in its individual capacity but solely
                                    as Subordination Agent, as Borrower

                               By:_______________________________________
                                  Name:
                                  Title:

                                     II-2
<PAGE>

            SCHEDULE I TO NON-EXTENSION ADVANCE NOTICE OF BORROWING

         [Insert Copy of computations in accordance with Non-Extension
                         Advance Notice of Borrowing]

                                     II-3
<PAGE>

                                                                  Annex III to
                                                    Revolving Credit Agreement

                     DOWNGRADE ADVANCE NOTICE OF BORROWING

          The undersigned, a duly authorized signatory of the undersigned
subordination agent (the "Borrower"), hereby certifies to Westdeutsche
Landesbank Girozentrale (the "Primary Liquidity Provider"), with reference to
the Revolving Credit Agreement (2002-1C-2) dated as of August 5, 2002, between
the Borrower and the Primary Liquidity Provider (the "Liquidity Agreement";
the terms defined therein and not otherwise defined herein being used herein
as therein defined or referenced), that:

               (1) The Borrower is the Subordination Agent under the
          Intercreditor Agreement.

               (2) The Borrower is delivering this Notice of Borrowing for the
          making of the Downgrade Advance by the Primary Liquidity Provider to
          be used for the funding of the Class C-2 Primary Cash Collateral
          Account in accordance with Section 3.6(c) of the Intercreditor
          Agreement by reason of the downgrading of the short-term unsecured
          debt rating of the Primary Liquidity Provider issued by either
          Rating Agency below the Threshold Rating, which Advance is requested
          to be made on __________, ____. The Downgrade Advance should be
          transferred to [name of bank/wire instructions/ABA number] in favor
          of account number [___], reference [____].

               (3) The amount of the Downgrade Advance requested hereby (i) is
          $_______________.__, which equals the Maximum Available Commitment
          on the date hereof and is to be applied in respect of the funding of
          the Class C-2 Primary Cash Collateral Account in accordance with
          Section 3.6(c) of the Intercreditor Agreement, (ii) does not include
          any amount with respect to the payment of the principal of, or Break
          Amount (if any), or Prepayment Premium (if any) or any premium on,
          the Class C-2 Certificates, or principal of or interest or Break
          Amount (if any), or Prepayment Premium (if any) or any premium on,
          the Class G-1 Certificates, the Class G-2 Certificates, the Class
          C-1 Certificates, or the Class D Certificates, (iii) was computed in
          accordance with the provisions of the Class C-2 Certificates, the
          Class C-2 Trust Agreement and the Intercreditor Agreement (a copy of
          which computation is attached hereto as Schedule I), and (iv) has
          not been and is not the subject of a prior or contemporaneous Notice
          of Borrowing under the Liquidity Agreement.

               (4) Upon receipt by or on behalf of the Borrower of the amount
          requested hereby, (a) the Borrower will deposit such amount in the
          Class C-2 Primary Cash Collateral Account and apply the same in
          accordance with the terms of Section 3.6(c) of the Intercreditor
          Agreement, (b) no portion of such amount shall be applied by the
          Borrower for any other purpose and (c) no portion of such amount
          until so applied shall be commingled with other funds held by the
          Borrower.

                                    III-1
<PAGE>

          The Borrower hereby acknowledges that, pursuant to the Liquidity
Agreement, (A) the making of the Downgrade Advance as requested by this Notice
of Borrowing shall automatically and irrevocably terminate the obligation of
the Primary Liquidity Provider to make further Advances under the Liquidity
Agreement; and (B) following the making by the Primary Liquidity Provider of
the Downgrade Advance requested by this Notice of Borrowing, the Borrower
shall not be entitled to request any further Advances under the Liquidity
Agreement.

          IN WITNESS WHEREOF, the Borrower has executed and delivered this
Notice of Borrowing as of the ____ day of _________, ____.

                               STATE STREET BANK AND TRUST COMPANY,
                                    not in its individual capacity but solely
                                    as Subordination Agent, as Borrower

                               By:_______________________________________
                                  Name:
                                  Title:

                                    III-2
<PAGE>

              SCHEDULE I TO DOWNGRADE ADVANCE NOTICE OF BORROWING

       [Insert Copy of computations in accordance with Downgrade Advance
                             Notice of Borrowing]

                                    III-3
<PAGE>

                                                                   Annex IV to
                                                    Revolving Credit Agreement

                       FINAL ADVANCE NOTICE OF BORROWING

          The undersigned, a duly authorized signatory of the undersigned
borrower (the "Borrower"), hereby certifies to Westdeutsche Landesbank
Girozentrale (the "Primary Liquidity Provider"), with reference to the
Revolving Credit Agreement (2002-1C-2) dated as of August 5, 2002, between the
Borrower and the Primary Liquidity Provider (the "Liquidity Agreement"; the
terms defined therein and not otherwise defined herein being used herein as
therein defined or referenced), that:

               (1) The Borrower is the Subordination Agent under the
          Intercreditor Agreement.

               (2) The Borrower is delivering this Notice of Borrowing for the
          making of the Final Advance by the Primary Liquidity Provider to be
          used for the funding of the Class C-2 Primary Cash Collateral
          Account in accordance with Section 3.6(i) of the Intercreditor
          Agreement by reason of the receipt by the Borrower of a Termination
          Notice from the Primary Liquidity Provider with respect to the
          Liquidity Agreement, which Advance is requested to be made on
          ____________, ____. The Final Advance should be transferred to [name
          of bank/wire instructions/ABA number] in favor of account number
          [___], reference [____].

               (3) The amount of the Final Advance requested hereby (i) is
          $_________________.__, which equals the Maximum Available Commitment
          on the date hereof and is to be applied in respect of the funding of
          the Class C-2 Primary Cash Collateral Account in accordance with
          Section 3.6(i) of the Intercreditor Agreement, (ii) does not include
          any amount with respect to the payment of principal of, or Break
          Amount (if any), Prepayment Premium (if any) or any other premium
          (if any) on, the Class C-2 Certificates, or principal of, or
          interest or Break Amount (if any), Prepayment Premium (if any) or
          any other premium (if any) on, the Class G-1 Certificates, the Class
          G-2 Certificates, the Class C-1 Certificates, or the Class D
          Certificates, (iii) was computed in accordance with the provisions
          of the Class C-2 Certificates, the Class C-2 Trust Agreement and the
          Intercreditor Agreement (a copy of which computation is attached
          hereto as Schedule I), and (iv) has not been and is not the subject
          of a prior or contemporaneous Notice of Borrowing.

               (4) Upon receipt by or on behalf of the Borrower of the amount
          requested hereby, (a) the Borrower will deposit such amount in the
          Class C-2 Primary Cash Collateral Account and apply the same in
          accordance with the terms of Section 3.6(i) of the Intercreditor
          Agreement, (b) no portion of such amount shall be applied by the
          Borrower for any other purpose and (c) no portion of such amount
          until so applied shall be commingled with other funds held by the
          Borrower.

                                     IV-1
<PAGE>

               (5) The Borrower hereby requests that the Advance requested
          hereby be a Base Rate Advance [and that such Base Rate Advance be
          converted into a LIBOR Advance on the third Business Day following
          your receipt of this notice]1.

          The Borrower hereby acknowledges that, pursuant to the Liquidity
Agreement, (A) the making of the Final Advance as requested by this Notice of
Borrowing shall automatically and irrevocably terminate the obligation of the
Primary Liquidity Provider to make further Advances under the Liquidity
Agreement; and (B) following the making by the Primary Liquidity Provider of
the Final Advance requested by this Notice of Borrowing, the Borrower shall
not be entitled to request any further Advances under the Liquidity Agreement.

          IN WITNESS WHEREOF, the Borrower has executed and delivered this
Notice of Borrowing as of the ____ day of _________, ____.

                               STATE STREET BANK AND TRUST COMPANY,
                                    not in its individual capacity but solely
                                    as Subordination Agent, as Borrower

                               By:_______________________________________
                                  Name:
                                  Title:

-------------------
1  Bracketed language may be included at Borrower's option.

                                     IV-2
<PAGE>

                SCHEDULE I TO FINAL ADVANCE NOTICE OF BORROWING

             [Insert Copy of Computations in accordance with Final
                         Advance Notice of Borrowing]

                                     IV-3
<PAGE>

                                                                    Annex V to
                                                    Revolving Credit Agreement

                             NOTICE OF TERMINATION

                                                  [Date]

State Street Bank and Trust Company,
  as Subordination Agent, as Borrower
2 Avenue de Lafayette
Boston, MA 02111

Attention:  Corporate Trust Administration

         Revolving Credit Agreement (2002-1C-2) dated as of August 5, 2002,
         between STATE STREET BANK AND TRUST COMPANY, as Subordination Agent,
         as Borrower, and WESTDEUTSCHE LANDESBANK GIROZENTRALE (the "Liquidity
         Agreement")

Ladies and Gentlemen:

          You are hereby notified that pursuant to Section 6.01 of the
Liquidity Agreement, by reason of the occurrence of a Liquidity Event of
Default and the existence of a Performing Note Deficiency (each as defined
therein), we are giving this notice to you in order to cause (i) our
obligations to make Advances (as defined therein) under such Liquidity
Agreement to terminate on the fifth Business Day after the date on which you
receive this notice and (ii) you to request a Final Advance under the
Liquidity Agreement pursuant to Section 3.6(i) of the Intercreditor Agreement
(as defined in the Liquidity Agreement) as a consequence of your receipt of
this notice.

                                     V-1
<PAGE>

          THIS NOTICE IS THE "NOTICE OF TERMINATION" PROVIDED FOR UNDER THE
LIQUIDITY AGREEMENT. OUR OBLIGATIONS TO MAKE ADVANCES UNDER THE LIQUIDITY
AGREEMENT WILL TERMINATE ON THE FIFTH BUSINESS DAY AFTER THE DATE ON WHICH YOU
RECEIVE THIS NOTICE.

                                      Very truly yours,

                                      WESTDEUTSCHE LANDESBANK
                                      GIROZENTRALE, NEW YORK BRANCH as
                                      Primary Liquidity Provider

                                      By:______________________________________
                                         Name:
                                         Title:

                                      By:______________________________________
                                         Name:
                                         Title:

cc:  State Street Bank and Trust Company of
     Connecticut, National Association,
     as Class C-2 Trustee

                                     V-2
<PAGE>

                                                                   Annex VI to
                                                    Revolving Credit Agreement

                   NOTICE OF REPLACEMENT SUBORDINATION AGENT

[Date]

Attention:

     Revolving Credit Agreement (2002-1C-2) dated as of August 5, 2002,
     between State Street Bank and Trust Company, as Subordination Agent, as
     Borrower, and Westdeutsche Landesbank Girozentrale (the "Liquidity
     Agreement")

Ladies and Gentlemen:

          For value received, the undersigned beneficiary hereby irrevocably
transfers to:

                        ------------------------------

                             [Name of Transferee]

                        ------------------------------

                            [Address of Transferee]

all rights and obligations of the undersigned as Borrower under the Liquidity
Agreement referred to above. The transferee has succeeded the undersigned as
Subordination Agent under the Intercreditor Agreement referred to in the first
paragraph of the Liquidity Agreement, pursuant to the terms of Section 8.1 of
the Intercreditor Agreement.

          By this transfer, all rights of the undersigned as Borrower under
the Liquidity Agreement are transferred to the transferee and the transferee
shall hereafter have the sole rights and obligations as Borrower thereunder.
The undersigned shall pay any costs and expenses of such transfer, including,
but not limited to, transfer taxes or governmental charges.

                                     VI-1
<PAGE>

          We ask that this transfer be effective as of _______________, ____.

                               STATE STREET BANK AND TRUST COMPANY,
                                    not in its individual capacity but solely
                                    as Subordination Agent, as Borrower

                               By:_______________________________________
                                  Name:
                                  Title:

                                     VI-2Exhibit 4(d)
                           INTERCREDITOR AGREEMENT

                                  Dated as of

                                August 5, 2002

                                 BY AND AMONG

              STATE STREET BANK AND TRUST COMPANY OF CONNECTICUT,
                             NATIONAL ASSOCIATION,

                        not in its individual capacity
                        but  as Trustee under the
               Northwest Airlines Pass Through Trust 2002-1G-1,
               Northwest Airlines Pass Through Trust 2002-1G-2,
              Northwest Airlines Pass Through Trust 2002-1C-1 and
                Northwest Airlines Pass Through Trust 2002-1C-2

                     WESTDEUTSCHE LANDESBANK GIROZENTRALE,
                                NEW YORK BRANCH

                   as Class G-1 Primary Liquidity Provider,
                     Class G-2 Primary Liquidity Provider,
                     Class C-1 Primary Liquidity Provider
                   and Class C-2 Primary Liquidity Provider

                   CREDIT SUISSE FIRST BOSTON INTERNATIONAL,
                   as Class G-1 Above-Cap Liquidity Provider
                  and Class C-1 Above-Cap Liquidity Provider

                      STATE STREET BANK AND TRUST COMPANY

                     not in its individual capacity except
                       as expressly set forth herein but
               as Subordination Agent and trustee hereunder

                                      AND

                          MBIA INSURANCE CORPORATION

                              as Policy Provider

<PAGE>

                               TABLE OF CONTENTS

                                                                          Page

ARTICLE I DEFINITIONS........................................................2

         Section 1.1.      Definitions.......................................2

ARTICLE II TRUST ACCOUNTS; CONTROLLING PARTY................................30

         Section 2.1.      Agreement to Terms of Subordination;
                           Payments from Monies Received Only...............30

         Section 2.2.      Trust Accounts...................................31

         Section 2.3.      Deposits to the Collection Account and
                           Special Payments Account.........................32

         Section 2.4.      Distributions of Special Payments................33

         Section 2.5.      Designated Representatives.......................36

         Section 2.6.      Controlling Party................................37

ARTICLE III RECEIPT, DISTRIBUTION AND APPLICATION OF
            AMOUNTS RECEIVED................................................40

         Section 3.1.      Written Notice of Distribution...................40

         Section 3.2.      Distribution of Amounts on Deposit in the
                           Collection Account...............................42

         Section 3.3.      Distribution of Amounts on Deposit
                           Following a Triggering Event.....................44

         Section 3.4.      Other Payments...................................48

         Section 3.5.      Payments to the Trustees, the Primary
                           Liquidity Providers and the Policy
                           Provider.........................................49

         Section 3.6.      Liquidity Facilities.............................49

         Section 3.7.      The Policies.....................................60

         Section 3.8.      Subrogation......................................65

ARTICLE IV EXERCISE OF REMEDIES.............................................65

         Section 4.1.      Directions from the Controlling Party............65

         Section 4.2.      Remedies Cumulative..............................66

         Section 4.3.      Discontinuance of Proceedings....................67

         Section 4.4.      Right of Certificateholders and Primary
                           Liquidity Providers to Receive Payments
                           Not to Be Impaired...............................67

         Section 4.5.      Undertaking for Costs............................67

                                      i
<PAGE>
                                                                          Page

ARTICLE V DUTIES OF THE SUBORDINATION AGENT; AGREEMENTS OF
          TRUSTEES, ETC.....................................................68

         Section 5.1.      Notice of Indenture Default or Triggering
                           Event............................................68

         Section 5.2.      Indemnification..................................68

         Section 5.3.      No Duties Except as Specified in
                           Intercreditor Agreement..........................68

         Section 5.4.      Notice from the Liquidity Providers
                           and Trustees.....................................69

ARTICLE VI THE SUBORDINATION AGENT..........................................69

         Section 6.1.      Authorization; Acceptance of Trusts
                           and Duties.......................................69

         Section 6.2.      Absence of Duties................................70

         Section 6.3.      No Representations or Warranties as to
                           Documents........................................70

         Section 6.4.      No Segregation of Monies; No Interest............71

         Section 6.5.      Reliance; Agents; Advice of Counsel..............71

         Section 6.6.      Capacity in Which Acting.........................71

         Section 6.7.      Compensation.....................................71

         Section 6.8.      May Become Certificateholder.....................71

         Section 6.9.      Subordination Agent Required; Eligibility........71

         Section 6.10.     Money to Be Held in Trust........................71

ARTICLE VII INDEMNIFICATION OF SUBORDINATION AGENT..........................72

         Section 7.1.      Scope of Indemnification.........................72

ARTICLE VIII SUCCESSOR SUBORDINATION AGENT..................................72

         Section 8.1.      Replacement of Subordination Agent;
                           Appointment of Successor.........................72

ARTICLE IX SUPPLEMENTS AND AMENDMENTS.......................................73

         Section 9.1.      Amendments, Waivers, Etc.........................73

         Section 9.2.      Subordination Agent Protected....................77

         Section 9.3.      Effect of Supplemental Agreements................77

         Section 9.4.      Notice to Rating Agencies and the Policy
                           Provider.........................................77

ARTICLE X MISCELLANEOUS.....................................................77

         Section 10.1.     Termination of Intercreditor Agreement...........77

         Section 10.2.     Intercreditor Agreement for Benefit of
                           Trustees, Liquidity Providers, Policy
                           Provider and Subordination Agent.................78

                                      ii
<PAGE>
                                                                          Page

         Section 10.3.     Notices..........................................78

         Section 10.4.     Severability.....................................80

         Section 10.5.     No Oral Modifications or Continuing Waivers......80

         Section 10.6.     Successors and Assigns...........................80

         Section 10.7.     Headings.........................................80

         Section 10.8.     Counterpart Form.................................80

         Section 10.9.     Subordination....................................81

         Section 10.10.    Governing Law....................................82

         Section 10.11.    Submission to Jurisdiction; Waiver of Jury
                           Trial; Waiver of Immunity........................82

                                      iii
<PAGE>

                            INTERCREDITOR AGREEMENT

          INTERCREDITOR AGREEMENT dated as of August 5, 2002, by and among
STATE STREET BANK AND TRUST COMPANY OF CONNECTICUT, NATIONAL ASSOCIATION, a
national banking association ("State Street of Connecticut"), not in its
individual capacity but solely as Trustee of each Trust (each as defined
below), WESTDEUTSCHE lANDESBANK girozentrale, NEW YORK BRANCH ("WestLB"), as
Class G-1 Primary Liquidity Provider, Class G-2 Primary Liquidity Provider,
Class C-1 Primary Liquidity Provider and Class C-2 Primary Liquidity Provider;
CREDIT SUISSE FIRST BOSTON INTERNATIONAL ("CSFBI"), as Class G-1 Above-Cap
Liquidity Provider and Class C-1 Above-Cap Liquidity Provider, STATE STREET
BANK AND TRUST COMPANY, a Massachusetts trust company, not in its individual
capacity except as expressly set forth herein, but solely as Subordination
Agent and trustee hereunder (in such capacity, together with any successor
appointed pursuant to Article VIII hereof, the "Subordination Agent") and MBIA
INSURANCE CORPORATION, a New York stock insurance company ("MBIA"), as the
Policy Provider.

          WHEREAS, all capitalized terms used herein shall have the respective
meaning referred to in Article I hereof;

          WHEREAS, pursuant to each Indenture (i) in the case of each Airbus
A319-100 Aircraft, Boeing 757-300 Aircraft or Airbus A330-300 Aircraft that is
owned by Northwest at the time such Indenture is entered into (the "Owned
Aircraft"), Northwest will issue on a recourse basis up to six series of
Equipment Notes to finance the purchase of such Aircraft and (ii) in the case
of one Boeing 757-300 Aircraft and one Airbus A330-300 Aircraft that may be
leased to Northwest pursuant to a related Lease (the "Leased Aircraft"), the
related Owner Trustee will issue on a nonrecourse basis two series of
Equipment Notes to finance the purchase of such Aircraft;

          WHEREAS, pursuant to the Financing Agreements, each Trust will
acquire Equipment Notes having an interest rate equal to the interest rate
applicable to the Certificates to be issued by such Trust;

          WHEREAS, pursuant to each Trust Agreement, the Trust created thereby
proposes to issue a single class of Certificates (a "Class") bearing the
interest rate and having the final distribution date described in such Trust
Agreement on the terms and subject to the conditions set forth therein;

          WHEREAS, pursuant to the Underwriting Agreement (as defined below),
the Underwriters propose to purchase the Class G-1 Certificates, Class G-2
Certificates, Class C-1 Certificates and Class C-2 Certificates issued by each
of the Class G-1 Trust, Class G-2 Trust, Class C-1 Trust and Class C-2 Trust,
respectively, in the aggregate face amount set forth opposite the name of each
such Trust on Schedule I thereto on the terms and subject to the conditions
set forth therein;

          WHEREAS, the Class G-1 Primary Liquidity Provider proposes to enter
into a revolving credit agreement relating to the Class G-1 Certificates, the
Class G-2 Primary

<PAGE>

Liquidity Provider proposes to enter into a revolving credit agreement
relating to the Class G-2 Certificates, the Class C-1 Primary Liquidity
Provider proposes to enter into a revolving credit agreement relating to the
Class C-1 Certificates, the Class C-2 Primary Liquidity Provider proposes to
enter into a revolving credit agreement relating to the Class C-2
Certificates, the Class G-1 Above-Cap Liquidity Provider proposes to enter
into an irrevocable interest rate cap agreement relating to the Class G-1
Certificates and the Class C-1 Above-Cap Liquidity Provider proposes to enter
into an irrevocable interest rate cap agreement relating to the Class C-1
Certificates in each case with the Subordination Agent, as agent for the
Trustee of the applicable Trust, respectively, for the benefit of the
Certificateholders of such Trust;

          WHEREAS, the Policy Provider proposes to enter into the Policy
Provider Agreement providing for the issuance by the Policy Provider of the
Policies for the benefit of the Class G-1 and Class G-2 Trusts;

          WHEREAS, it is a condition precedent to the obligations of the
Underwriters under the Underwriting Agreement that the Subordination Agent,
the Trustees, the Liquidity Providers and the Policy Provider agree to the
terms of subordination set forth in this Agreement in respect of each Class of
Certificates, and the Subordination Agent, the Trustees, the Liquidity
Providers and the Policy Provider, by entering into this Agreement, hereby
acknowledge and agree to such terms of subordination and the other provisions
of this Agreement; and

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

                                  ARTICLE I

                                  DEFINITIONS

          Section 1.1. Definitions. For all purposes of this Agreement, except
as otherwise expressly provided or unless the context otherwise requires:

               (1) the terms used herein that are defined in thi s Article
          have the meanings assigned to them in this Article, and include the
          plural as well as the singular;

               (2) all references in this Agreement to designated "Articles",
          "Sections" and other subdivisions are to the designated Articles,
          Sections and other subdivisions of this Agreement;

               (3) the words "herein", "hereof" and "hereunder" and other
          words of similar import refer to this Agreement as a whole and not
          to any particular Article, Section or other subdivision; and

               (4) the term "including" shall mean "including without
          limitation".

               "Above-Cap Account" means the Class G-1 Above-Cap Account or
          the Class C-1 Above Cap Account, as applicable.

                                     -2-
<PAGE>

               "Above-Cap Reserve Account" means the Class G-1 Above-Cap
          Reserve Account or the Class C-1 Above-Cap Reserve Account, as
          applicable.

               "Above-Cap Liquidity Facility" means the Class G-1 Above-Cap
          Liquidity Facility or the Class C-1 Above-Cap Liquidity Facility, as
          applicable.

               "Above-Cap Liquidity Provider" means the Class G-1 Above-Cap
          Liquidity Provider or the Class C-1 Above-Cap Liquidity Provider, as
          applicable.

               "Above-Cap Payment" has the meaning assigned to such term in
          Section 3.6(a).

               "Above-Cap Withdrawal" has the meaning assigned to such term in
          Section 3.6(a).

               "Acceleration" means, with respect to the amounts payable in
          respect of the Equipment Notes issued under any Indenture, the
          declaration or deemed declaration of such amounts to be immediately
          due and payable. "Accelerate" and "Accelerated" have meanings
          correlative to the foregoing.

               "Accrued Class G-1 Interest" means, with respect to any
          Distribution Date, all amounts due and owing in respect of accrued
          and unpaid interest on the Class G-1 Certificates at the Stated
          Interest Rate for the Class G-1 Certificates on such Distribution
          Date.

               "Accrued Class G-2 Interest" means, with respect to any
          Distribution Date, all amounts due and owing in respect of accrued
          and unpaid interest on the Class G-2 Certificates at the Stated
          Interest Rate for the Class G-2 Certificates on such Distribution
          Date.

               "Additional Payment" means the payment of any Break Amount,
          Prepayment Premium and/or other premium in respect of the Equipment
          Notes.

               "Adjusted Expected Distributions" means with respect to the
          Certificates of any Class on any Current Distribution Date the sum
          of (x) the amount of accrued and unpaid interest on such
          Certificates (excluding interest, if any, payable with respect to
          the Deposits related to such Trust) plus (y) the greater of:

                    (A) the difference between (x) the Pool Balance of such
               Certificates as of the immediately preceding Distribution Date
               (or if the Current Distribution Date is the first Distribution
               Date, the original aggregate face amount of the Certificates of
               such Trust) and (y) the Pool Balance of such Certificates as of
               the Current Distribution Date calculated on the basis that (i)
               the principal of the Non-Performing Equipment Notes held in
               such Trust has been paid in full and such payments have been
               distributed to the holders of such Certificates, (ii) the
               principal of the Performing Equipment Notes has been paid when
               due (but without giving effect to any Acceleration of
               Performing Equipment Notes except to the extent monies are
               received as a result of such Acceleration) and has been
               distributed to the holders of such Certificates and (iii) the
               principal of any

                                     -3-
<PAGE>

               Equipment Notes formerly held in such Trust which have been
               sold pursuant to the terms hereof have been paid in full and
               such payments have been distributed to the holders of such
               Certificates but without giving effect to any reduction in the
               Pool Balance as a result of any distribution attributable to
               Deposits occurring after the immediately preceding Distribution
               Date (or, if the Current Distribution Date is the first
               Distribution Date, occurring after the initial issuance of the
               Certificates of such Trust) and

                    (B) the amount of the excess, if any, by which (i) the
               Pool Balance of such Class of Certificates as of the
               immediately preceding Distribution Date (or, if the Current
               Distribution Date is the first Distribution Date, the original
               aggregate face amount of the Certificates of such Trust) less
               the amount of the Deposits for such Class of Certificates as of
               such preceding Distribution Date (or, if the Current
               Distribution Date is the first Distribution Date, the original
               aggregate amount of the Deposits for such Class of
               Certificates) other than any portion of such Deposits
               thereafter used to acquire Equipment Notes pursuant to the Note
               Purchase Agreement, over (ii) the Aggregate LTV Collateral
               Amount for such Class of Certificates for the Current
               Distribution Date;

          provided that, (x) until the date of the initial LTV Appraisals for
          all of the Aircraft, clause (B) above shall not be applicable and
          (y) in the case of the Class D Certificates, clause (B) above shall
          not be applicable.

               For purposes of calculating Adjusted Expected Distributions,
          any Additional Payment paid on the Equipment Notes held in any Trust
          which has not been distributed to the Certificateholders of such
          Trust (other than such Additional Payment or a portion thereof
          applied to the payment of interest on the Certificates of such Trust
          or the reduction of the Pool Balance of such Trust) shall be added
          to the amount of such Adjusted Expected Distributions.

               "Advance", with respect to any Primary Liquidity Facility,
          means any Advance as defined in such Primary Liquidity Facility.

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

               "Aggregate LTV Collateral Amount" for any Class of Certificates
          (other than the Class D Certificates) for any Distribution Date
          means an amount, not less than zero, equal to the product of (i) the
          sum of the applicable LTV Collateral Amounts for each Aircraft,
          minus the Pool Balance for each Class of Certificates, if any,
          senior to such Class, after giving effect to any distribution of
          principal on such Distribution Date with respect to such senior
          Class or Classes and (ii) (a) in the case of Class G-1 Certificates
          or Class G-2 Certificates, as the case may be, a fraction the
          numerator of which equals the

                                     -4-
<PAGE>

          Pool Balance for the Class G-1 Certificates or Class G-2
          Certificates, as the case may be, and the denominator of which
          equals the aggregate Pool Balances for the Class G-1 Certificates
          and the Class G-2 Certificates, in each case prior to giving effect
          to any distribution of principal on such Distribution Date with
          respect to either such Class of Certificates and (b) in the case of
          the Class C-1 Certificates or Class C-2 Certificates as the case may
          be, a fraction the numerator of which equals the Pool Balance for
          the Class C-1 Certificates or Class C-2 Certificates, as the case
          may be, and the denominator of which equals the aggregate Pool
          Balance for the Class C-1 Certificates and the Class C-2
          Certificates, in each case prior to giving effect to any
          distributions of principal on such Distribution Date with respect to
          either such Class of Certificate.

               "Aircraft" means, with respect to any Indenture, the "Aircraft"
          referred to therein.

               "Appraised Current Market Value" of any Aircraft means the
          lower of the average and the median of the most recent three LTV
          Appraisals of such Aircraft.

               "Appraisers" means Aircraft Information Systems, Inc., Avitas,
          Inc. and Morten Beyer and Agnew, Inc.

               "Avoided Payment" has the meaning assigned to such terms in
          each Policy.

               "Break Amount" shall have the meaning set forth in the
          Indentures.

               "Business Day" means any day other than a Saturday or Sunday or
          a day on which (i) for purposes of each Policy and the Policy
          Provider, the fiscal agent under the Policy, at its office specified
          in such Policy, the Policy Provider at its office specified in the
          Policy and insurance companies in New York, New York are required or
          authorized by law or executive order to close and (ii) for all such
          and all other purposes hereunder, commercial banks are required or
          authorized to close in Minneapolis, Minnesota, New York, New York,
          or the city and state in which any Trustee, the Subordination Agent
          or any Loan Trustee maintains its Corporate Trust Office or receives
          and disburses funds. Solely with respect to draws under any
          Liquidity Facility, Business Day shall also include a "Business Day"
          as defined in such Liquidity Facility.

               "Capped Interest Rate" means, with respect to the Class G-1
          Certificates, 10.75% per annum, and with respect to the Class C-1
          Certificates, 14.50% per annum.

               "Cash Collateral Account" means the Class G-1 Primary Cash
          Collateral Account, the Class G-1 Above-Cap Reserve Account, the
          Class G-2 Primary Cash Collateral Account, the Class C-1 Primary
          Cash Collateral Account, the Class C-1 Above-Cap Reserve Account or
          the Class C-2 Primary Cash Collateral Account, as applicable.

               "Capped LIBOR" means, at any time, 10.0% per annum.

               "Certificate" means a Class G-1 Certificate, a Class G-2
          Certificate, a Class C-1 Certificate, a Class C-2 Certificate or,
          upon its issuance, a Class D Certificate, as applicable.

                                     -5-
<PAGE>

               "Certificateholder" means any holder of one or more
          Certificates.

               "Class" has the meaning assigned to such term in the
          preliminary statements to this Agreement.

               "Class C-1 Above-Cap Account" means an Eligible Deposit Account
          in the name of the Subordination Agent maintained at an Eligible
          Institution, which shall be the Subordination Agent if it shall so
          qualify, into which all amounts paid under the Class C-1 Above-Cap
          Liquidity Facility pursuant to Section 3.6(a) shall be deposited.

               "Class C-1 Above-Cap Reserve Account" means an Eligible Deposit
          Account in the name of the Subordination Agent maintained at an
          Eligible Institution, which shall be the Subordination Agent if it
          shall so qualify, into which all amounts paid under the Class C-1
          Above-Cap Liquidity Facility pursuant to Section 3.6(f) shall be
          deposited.

               "Class C-1 Above-Cap Liquidity Facility" means, initially, the
          ISDA Master Agreement, dated as of the date hereof, between the
          Subordination Agent, as agent and trustee for the Class C-1 Trust,
          and the initial Class C-1 Above-Cap Liquidity Provider, together
          with the Schedule and Confirmation attached thereto, relating to the
          Class C-1 Certificates, and, from and after the replacement of such
          ISDA Master Agreement pursuant hereto, the Replacement Above-Cap
          Liquidity Facility therefor, if any, in each case as amended,
          supplemented or otherwise modified from time to time in accordance
          with its terms.

               "Class C-1 Above-Cap Liquidity Provider" means Credit Suisse
          First Boston International, together with any Replacement Above-Cap
          Liquidity Provider which has issued a Replacement Above-Cap
          Liquidity Facility to replace any Class C-1 Above-Cap Liquidity
          Facility pursuant to Section 3.6(c)(ii).

               "Class C-1 Certificateholder" means, at any time, any holder of
          one or more Class C-1 Certificates.

               "Class C-1 Certificates" means the certificates issued by the
          Class C-1 Trust, substantially in the form of Exhibit A to the Class
          C-1 Trust Agreement, and authenticated by the Class C-1 Trustee,
          representing fractional undivided interests in the Class C-1 Trust,
          and any certificates issued in exchange therefor or replacement
          thereof pursuant to the terms of the Class C-1 Trust Agreement.

               "Class C-1 Primary Cash Collateral Account" means an Eligible
          Deposit Account in the name of the Subordination Agent maintained at
          an Eligible Institution, which shall be the Subordination Agent if
          it shall so qualify, into which all amounts drawn under the Class
          C-1 Primary Liquidity Facility pursuant to Sections 3.6(c), 3.6(d)
          or 3.6(i) shall be deposited.

               "Class C-1 Primary Liquidity Facility" means, initially, the
          Revolving Credit Agreement dated as of the date hereof, by and
          between the Subordination Agent, as agent and trustee of the Class
          C-1 Trustee, and the initial Class C-1 Primary Liquidity Provider,
          and, from and after the replacement of such Agreement pursuant
          hereto, the Replacement

                                     -6-
<PAGE>

          Primary Liquidity Facility therefor, if any, in each case as
          amended, supplemented or otherwise modified from time to time in
          accordance with its terms.

               "Class C-1 Primary Liquidity Provider" means WestLB together
          with any Replacement Primary Liquidity Provider which has issued a
          Replacement Primary Liquidity Facility to replace the Class C-1
          Primary Liquidity Facility pursuant to Section 3.6(e).

               "Class C-1 Trust" means Northwest Airlines 2002-1C-1 Pass
          Through Trust created and administered pursuant to the Class C-1
          Trust Agreement.

               "Class C-1 Trust Agreement" means the Pass Through Trust
          Agreement, as supplemented by Trust Supplement No. 2002-1C-1 thereto
          dated as of the date hereof, by and among Northwest, the Guarantor
          and the Trustee, governing the creation and administration of the
          Class C-1 Trust and the issuance of the Class C-1 Certificates, as
          the same may be amended, supplemented or otherwise modified from
          time to time in accordance with its terms.

               "Class C-1 Trustee" means State Street of Connecticut, not in
          its individual capacity except as expressly set forth in the Class
          C-1 Trust Agreement, but solely as trustee under the Class C-1 Trust
          Agreement, together with any successor trustee appointed pursuant
          thereto.

               "Class C-2 Certificateholder" means, at any time, any holder of
          one or more Class C-2 Certificates.

               "Class C-2 Certificates" means the certificates issued by the
          Class C-2 Trust, substantially in the form of Exhibit A to the Class
          C-2 Trust Agreement, and authenticated by the Class C-2 Trustee,
          representing fractional undivided interests in the Class C-2 Trust,
          and any certificates issued in exchange therefor or replacement
          thereof pursuant to the terms of the Class C-2 Trust Agreement.

               "Class C-2 Primary Cash Collateral Account" means an Eligible
          Deposit Account in the name of the Subordination Agent maintained at
          an Eligible Institution, which shall be the Subordination Agent if
          it shall so qualify, into which all amounts drawn under the Class
          C-2 Primary Liquidity Facility pursuant to Sections 3.6(c), 3.6(d)
          or 3.6(i) shall be deposited.

               "Class C-2 Primary Liquidity Facility" means, initially, the
          Revolving Credit Agreement dated as of the date hereof, by and
          between the Subordination Agent, as agent and trustee of the Class
          C-2 Trustee, and the initial Class C-2 Primary Liquidity Provider,
          and, from and after the replacement of such Agreement pursuant
          hereto, the Replacement Primary Liquidity Facility therefor, if any,
          in each case as amended, supplemented or otherwise modified from
          time to time in accordance with its terms.

               "Class C-2 Primary Liquidity Provider" means WestLB, together
          with any Replacement Primary Liquidity Provider which has issued a
          Replacement Primary

                                     -7-
<PAGE>

          Liquidity Facility to replace the Class C-2 Primary Liquidity
          Facility pursuant to Section 3.6(e).

               "Class C-2 Trust" means Northwest Airlines 2002-1C-2 Pass
          Through Trust created and administered pursuant to the Class C-2
          Trust Agreement.

               "Class C-2 Trust Agreement" means the Pass Through Trust
          Agreement, as supplemented by Trust Supplement No. 2002-1C-2 thereto
          dated as of the date hereof, by and among Northwest, the Guarantor
          and the Trustee, governing the creation and administration of the
          Class C-2 Trust and the issuance of the Class C-2 Certificates, as
          the same may be amended, supplemented or otherwise modified from
          time to time in accordance with its terms.

               "Class C-2 Trustee" means State Street of Connecticut, not in
          its individual capacity except as expressly set forth in the Class
          C-2 Trust Agreement, but solely as trustee under the Class C-2 Trust
          Agreement, together with any successor trustee appointed pursuant
          thereto.

               "Class D Certificateholder" means, at any time, any holder of
          one or more Class D Certificates.

               "Class D Certificates" means the certificates, if any, issued
          by the Class D Trust, substantially in the form of Exhibit A to the
          Class D Trust Agreement, and authenticated by the Class D Trustee,
          representing fractional undivided interests in the Class D Trust,
          and any certificates issued in exchange therefor or in replacement
          thereof pursuant to the terms of the Class D Trust Agreement.

               "Class D Trust" means Northwest Airlines 2002-1D Pass Through
          Trust created and administered pursuant to the Class D Trust
          Agreement.

               "Class D Trust Agreement" means, upon execution of the Class D
          Trust Supplement (as defined in the Note Purchase Agreement), the
          Pass Through Trust Agreement, as supplemented by the Class D Trust
          Supplement, governing the creation and administration of the Class D
          Trust and the issuance of the Class D Certificates, as the same may
          be amended, supplemented or otherwise modified from time to time in
          accordance with its terms.

               "Class D Trustee" means, upon execution of the Class D Trust
          Agreement, State Street of Connecticut, not in its individual
          capacity except as expressly set forth in the Class D Trust
          Agreement, but solely as trustee under the Class D Trust Agreement,
          together with any successor trustee appointed pursuant thereto.

               "Class E Certificates" means the certificates, if any, issued
          by the Class E Trust representing a fractional undivided interest in
          the Class E Trust.

               "Class E Trust" means Northwest Airlines 2002-1E Pass Through
          Trust, if and when established.

                                     -8-
<PAGE>

               "Class G-1 Above-Cap Account" means an Eligible Deposit Account
          in the name of the Subordination Agent maintained at an Eligible
          Institution, which shall be the Subordination Agent if it shall so
          qualify, into which all amounts paid under the Class G-1 Above-Cap
          Liquidity Facility pursuant to Section 3.6(a) shall be deposited.

               "Class G-1 Above-Cap Reserve Account" means an Eligible Deposit
          Account in the name of the Subordination Agent maintained at an
          Eligible Institution, which shall be the Subordination Agent if it
          shall so qualify, into which all amounts paid under the Class G-1
          Above-Cap Liquidity Facility pursuant to Section 3.6(f) shall be
          deposited.

               "Class G-1 Above-Cap Liquidity Facility" means, initially, the
          ISDA Master Agreement, dated as of the date hereof, between the
          Subordination Agent, as agent and trustee for the Class G-1 Trust,
          and the initial Class G-1 Above-Cap Liquidity Provider, together
          with the Schedule and Confirmation attached thereto, relating to the
          Class G-1 Certificates, and, from and after the replacement of such
          ISDA Master Agreement pursuant hereto, the Replacement Above-Cap
          Liquidity Facility therefor, if any, in each case as amended,
          supplemented or otherwise modified from time to time in accordance
          with its terms.

               "Class G-1 Above-Cap Liquidity Provider" means Credit Suisse
          First Boston International, together with any Replacement Above-Cap
          Liquidity Provider which has issued a Replacement Above-Cap
          Liquidity Facility to replace any Class G-1 Above-Cap Liquidity
          Facility pursuant to Section 3.6(c)(ii).

               "Class G-1 Certificateholder" means, at any time, any holder of
          one or more Class G-1 Certificates.

               "Class G-1 Certificates" means the certificates issued by the
          Class G-1 Trust, substantially in the form of Exhibit A to the Class
          G-1 Trust Agreement, and authenticated by the Class G-1 Trustee,
          representing fractional undivided interests in the Class G-1 Trust,
          and any certificates issued in exchange therefor or replacement
          thereof pursuant to the terms of the Class G-1 Trust Agreement.

               "Class G-1 Deposits" means the Deposits with respect to the
          Class G-1 Certificates.

               "Class G-1 Escrow Receipts" means the Escrow Receipts issued
          under the Escrow and Paying Agent Agreement relating to the Class
          G-1 Trust.

               "Class G-1 Paying Agent Account" means the Paying Agent Account
          as defined in the Escrow and Paying Agent Agreement relating to the
          Class G-1 Certificates.

               "Class G-1 Policy" means the Financial Guaranty Insurance
          Policy No.38687 issued as of the Closing Date, by the Policy
          Provider in favor of the Subordination Agent, for the benefit of the
          Class G-1 Certificateholders, as amended, supplemented or otherwise
          modified from time to time in accordance with its terms.

                                     -9-
<PAGE>

               "Class G-1 Policy Account" means the Eligible Deposit Account
          Established by the Subordination Agent pursuant to Section
          2.2(a)(iii).

               "Class G-1 Primary Cash Collateral Account" means an Eligible
          Deposit Account in the name of the Subordination Agent maintained at
          an Eligible Institution, which shall be the Subordination Agent if
          it shall so qualify, into which all amounts drawn under the Class
          G-1 Primary Liquidity Facility pursuant to Sections 3.6(c), 3.6(d)
          or 3.6(i) shall be deposited.

               "Class G-1 Primary Liquidity Facility" means, initially, the
          Revolving Credit Agreement dated as of the date hereof, by and
          between the Subordination Agent, as agent and trustee of the Class
          G-1 Trustee, and the initial Class G-1 Primary Liquidity Provider,
          and, from and after the replacement of such Agreement pursuant
          hereto, the Replacement Primary Liquidity Facility therefor, if any,
          in each case as amended, supplemented or otherwise modified from
          time to time in accordance with its terms.

               "Class G-1 Primary Liquidity Provider" means WestLB, together
          with any Replacement Primary Liquidity Provider which has issued a
          Replacement Primary Liquidity Facility to replace the Class G-1
          Primary Liquidity Facility pursuant to Section 3.6(e).

               "Class G-1 Trust" means Northwest Airlines 2002-1G-1 Pass
          Through Trust created and administered pursuant to the Class G-1
          Trust Agreement.

               "Class G-1 Trust Agreement" means the Pass Through Trust
          Agreement, as supplemented by Trust Supplement No. 2002-1G-1 thereto
          dated as of the date hereof, by and among Northwest, the Guarantor
          and the Trustee, governing the creation and administration of the
          Class G-1 Trust and the issuance of the Class G-1 Certificates, as
          the same may be amended, supplemented or otherwise modified from
          time to time in accordance with its terms.

               "Class G-1 Trustee" means State Street of Connecticut, not in
          its individual capacity except as expressly set forth in the Class
          G-1 Trust Agreement, but solely as trustee under the Class G-1 Trust
          Agreement, together with any successor trustee appointed pursuant
          thereto.

               "Class G-2 Certificateholder" means, at any time, any holder of
          one or more Class G-2 Certificates.

               "Class G-2 Certificates" means the certificates issued by the
          Class G-2 Trust, substantially in the form of Exhibit A to the Class
          G-2 Trust Agreement, and authenticated by the Class G-2 Trustee,
          representing fractional undivided interests in the Class G-2 Trust,
          and any certificates issued in exchange therefor or replacement
          thereof pursuant to the terms of the Class G-2 Trust Agreement.

               "Class G-2 Deposits" means the Deposits with respect to the
          Class G-2 Certificates.

                                     -10-
<PAGE>

               "Class G-2 Escrow Receipts" means the Escrow Receipts issued
          under the Escrow and Paying Agent Agreement relating to the Class
          G-2 Trust.

               "Class G-2 Paying Agent Account" means the Paying Agent Account
          as defined in the Escrow and Paying Agent Agreement relating to the
          Class G-2 Certificates.

               "Class G-2 Policy" means the Financial Guaranty Insurance
          Policy No. 38688 issued as of the Closing Date, by the Policy
          Provider in favor of the Subordination Agent, for the benefit of the
          Class G-2 Certificateholders, as amended, supplemented or otherwise
          modified from time to time in accordance with its terms.

               "Class G-2 Policy Account" means the Eligible Deposit Account
          Established by the Subordination Agent pursuant to Section
          2.2(a)(iii).

               "Class G-2 Primary Cash Collateral Account" means an Eligible
          Deposit Account in the name of the Subordination Agent maintained at
          an Eligible Institution, which shall be the Subordination Agent if
          it shall so qualify, into which all amounts drawn under the Class
          G-2 Primary Liquidity Facility pursuant to Sections 3.6(c), 3.6(d)
          or 3.6(i) shall be deposited.

               "Class G-2 Primary Liquidity Facility" means, initially, the
          Revolving Credit Agreement dated as of the date hereof, by and
          between the Subordination Agent, as agent and trustee of the Class
          G-2 Trustee, and the initial Class G-2 Primary Liquidity Provider,
          and, from and after the replacement of such Agreement pursuant
          hereto, the Replacement Primary Liquidity Facility therefor, if any,
          in each case as amended, supplemented or otherwise modified from
          time to time in accordance with its terms.

               "Class G-2 Primary Liquidity Provider" means WestLB together
          with any Replacement Primary Liquidity Provider which has issued a
          Replacement Primary Liquidity Facility to replace the Class G-2
          Primary Liquidity Facility pursuant to Section 3.6(e).

               "Class G-2 Trust" means Northwest Airlines 2002-1G-2 Pass
          Through Trust created and administered pursuant to the Class G-2
          Trust Agreement.

               "Class G-2 Trust Agreement" means the Pass Through Trust
          Agreement, as supplemented by Trust Supplement No. 2002-1G-2 thereto
          dated as of the date hereof, by and among Northwest, the Guarantor
          and the Trustee, governing the creation and administration of the
          Class G-2 Trust and the issuance of the Class G-2 Certificates, as
          the same may be amended, supplemented or otherwise modified from
          time to time in accordance with its terms.

               "Class G-2 Trustee" means State Street of Connecticut, not in
          its individual capacity except as expressly set forth in the Class
          G-2 Trust Agreement, but solely as trustee under the Class G-2 Trust
          Agreement, together with any successor trustee appointed pursuant
          thereto.

               "Closing Date" means August 5, 2002.

                                     -11-
<PAGE>

               "Code" means the Internal Revenue Code of 1986, as amended from
          time to time, and Treasury Regulations promulgated thereunder.

               "Collection Account" means the Eligible Deposit Account
          established by the Subordination Agent pursuant to Section 2.2 which
          the Subordination Agent shall make deposits in and withdrawals from
          in accordance with this Agreement.

               "Consent Period" has the meaning ascribed to such term in
          Section 3.6(d).

               "Controlling Party" means the Person entitled to act as such
          pursuant to the terms of Section 2.6.

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

               "Current Distribution Date" means a Distribution Date specified
          as a reference date for calculating the Adjusted Expected
          Distributions or Expected Distributions with respect to the
          Certificates of any Trust as of such Distribution Date.

               "Defaulted Series G-1 Equipment Notes" has the meaning assigned
          to such term in Section 3.7(c).

               "Defaulted Series G-2 Equipment Notes" has the meaning assigned
          to such term in Section 3.7(c).

               "Deficiency Amount" has the meaning assigned to such term in
          Section 3.6(a).

               "Delivery Period Expiry Date" means March 31, 2004.

               "Deposit Agreement" shall mean, with respect to any Class of
          Certificates (other than Class D Certificates), the Deposit
          Agreement pertaining to such Class dated the date hereof between the
          Escrow Agent and the Depositary, as the same may be amended,
          modified or supplemented from time to time in accordance with the
          terms thereof.

               "Depositary" means Credit Suisse First Boston, New York Branch,
          as depositary under the Deposit Agreement relating to Class G-1,
          Class G-2, Class C-1 and Class C-2 Certificates.

               "Deposits" with respect to any Class of Certificates (other
          than Class D Certificates), shall have the meaning set forth in the
          Deposit Agreement pertaining to such Class.

               "Designated Representatives" means the Subordination Agent
          Representatives, Trustee Representatives, the Policy Provider
          Representatives and the LP Representatives identified under Section
          2.5.

                                     -12-
<PAGE>

               "Distribution Date" means a Regular Distribution Date or a
          Special Distribution Date.

               "Dollars" or "$" means United States dollars.

               "Downgrade Drawing" with respect to any Primary Liquidity
          Facility, has the meaning assigned to such term in such Primary
          Liquidity Facility.

               "Downgrade Event" has the meaning assigned to such term in each
          Primary Liquidity Facility.

               "Downgraded Facility" has the meaning assigned to such term in
          Section 3.6(c).

               "Drawing" means an Interest Drawing, a Non-Extension Drawing, a
          Final Drawing or a Downgrade Drawing, as the case may be.

               "Election Interest Payment" has the meaning specified in
          Section 3.7(d) hereof.

               "Eligible Deposit Account" means either (a) a segregated
          account with an Eligible Institution or (b) a segregated trust
          account with the corporate trust department of a depository
          institution organized under the laws of the United States of America
          or any one of the states thereof or the District of Columbia (or any
          U.S. branch of a foreign bank), having corporate trust powers and
          acting as trustee for funds deposited in such account, so long as
          any of the securities of such depository institution has a long-term
          unsecured debt rating from each Rating Agency of at least A-3 or its
          equivalent. An Eligible Deposit Account may be maintained with a
          Primary Liquidity Provider so long as such Primary Liquidity
          Provider is an Eligible Institution (as defined below); provided
          that such Primary Liquidity Provider shall have waived all rights of
          set-off and counterclaim with respect to such account.

               "Eligible Institution" means, subject to the last sentence of
          subsection 2.2(c), (a) the corporate trust department of the
          Subordination Agent or any Trustee, as applicable, or (b) a
          depository institution organized under the laws of the United States
          of America or any one of the states thereof or the District of
          Columbia (or any U.S. branch of a foreign bank), which has a
          long-term unsecured debt rating from each Rating Agency of at least
          A-3 or its equivalent.

               "Eligible Investments" means (a) investments in obligations of,
          or guaranteed by, the United States Government having maturities no
          later than 90 days following the date of such investment, (b)
          investments in open market commercial paper of any corporation
          incorporated under the laws of the United States of America or any
          state thereof with a short-term unsecured debt rating issued by
          Moody's and Standard & Poor's of at least P-1 or A-1, respectively,
          having maturities no later than 90 days following the date of such
          investment or (c) investments in negotiable certificates of deposit,
          time deposits, banker's acceptances, commercial paper or other
          direct obligations of, or obligations guaranteed by, commercial
          banks organized under the laws of the United States or of any
          political subdivision thereof (or any U.S. branch of a foreign bank)
          with issuer ratings of at least B/C by Thomson Bankwatch, having
          maturities no later than 90 days following the date

                                     -13-
<PAGE>

          of such investment; provided, however, that (x) all Eligible
          Investments that are bank obligations shall be denominated in U.S.
          dollars; and (y) the aggregate amount of Eligible Investments at any
          one time that are bank obligations issued by any one bank shall not
          be in excess of 5% of such bank's capital surplus; provided further
          that (1) any investment of the types described in clauses (a), (b)
          and (c) above may be made through a repurchase agreement in
          commercially reasonable form with a bank or other financial
          institution qualifying as an Eligible Institution so long as such
          investment is held by a third party custodian also qualifying as an
          Eligible Institution, and (2) all such investments set forth in (a),
          (b) and (c) above mature no later than the Business Day immediately
          preceding the next Regular Distribution Date; provided further,
          however, that in the case of any Eligible Investment issued by a
          domestic branch of a foreign bank, the income from such investment
          shall be from sources within the United States for purposes of the
          Code. Notwithstanding the foregoing, no investment of the types
          described in clause (b) or (c) above which is issued or guaranteed
          by a Liquidity Provider or Northwest or any of their respective
          Affiliates shall be an Eligible Investment.

               "Eligible Provider" has the meaning assigned to such term in
          Section 2.6(c).

               "Equipment Notes" means, at any time, the Series G-1 Equipment
          Notes, the Series G-2 Equipment Notes, the Series C-1 Equipment
          Notes, the Series C-2 Equipment Notes and, upon their issuance, the
          Series D Equipment Notes, collectively, and in each case, any
          Equipment Notes issued in exchange therefor or replacement thereof
          pursuant to the terms of the Indentures.

               "Escrow Agent" means Wells Fargo Bank Northwest, National
          Association, as escrow agent under each Escrow and Paying Agent
          Agreement, together with its successors in such capacity.

               "Escrow and Paying Agent Agreement" shall mean, with respect to
          any Class of Certificates (other than Class D Certificates), the
          Escrow and Paying Agent Agreement pertaining to such Class, dated
          the date hereof, among the Escrow Agent, the Underwriters, the
          Trustee for such Class and the Paying Agent, as the same may be
          amended, modified or supplemented from time to time in accordance
          with the terms thereof.

               "Escrow Receipts" has the meaning assigned to such term in the
          Escrow and Paying Agent Agreements for the Trusts (other than the
          Class D Trust).

               "Excess Reimbursement Obligations" means, (a) in the event of
          any Policy Provider Election, the portion of the Policy Provider
          Obligations that represents interest on the Series G-1 or Series G-2
          Equipment Notes in respect of which the Policy Provider Election has
          been made in excess of 21 months of interest at the interest rate
          applicable to such Series G-1 and G-2 Equipment Notes and (b) any
          interest on the Liquidity Obligations in respect of the Class G-1
          and Class G-2 Liquidity Facilities paid by the Policy Provider to
          the related Liquidity Providers from and after the end of the
          21-month period referred to in Section 3.7(c) hereof.

                                     -14-
<PAGE>

               "Expected Distributions" means, with respect to the
          Certificates of any Trust on any Current Distribution Date, the sum
          of (x) accrued and unpaid interest on such Certificates (excluding
          interest, if any, payable with respect to the Deposits related to
          such Trust) and (y) the difference between (A) the Pool Balance of
          such Certificates as of the immediately preceding Distribution Date
          (or if the Current Distribution Date is the first Distribution Date,
          the original aggregate face amount of the Certificates of such
          Trust) and (B) the Pool Balance of such Certificates as of the
          Current Distribution Date, calculated on the basis that (1) the
          principal of the Equipment Notes held in such Trust has been paid
          when due (whether at stated maturity or upon redemption, prepayment,
          purchase, Acceleration or otherwise) and such payments have been
          distributed to the holders of such Certificates and (2) the
          principal of any Equipment Notes formerly held in such Trust that
          have been sold pursuant to this Agreement has been paid in full and
          such payments have been distributed to the Certificateholders, but
          without giving effect to any reduction in the Pool Balance as a
          result of any distribution attributable to Deposits occurring after
          the immediately preceding Distribution Date (or, if the Current
          Distribution Date is the first Distribution Date, occurring after
          the initial issuance of the Certificates of such Trust). For
          purposes of calculating Expected Distributions with respect to the
          Certificates of any Trust, any Additional Payment paid on the
          Equipment Notes held in such Trust which has not been distributed to
          the Certificateholders of such Trust (other than such Additional
          Payment or a portion thereof applied to the payment of interest on
          the Certificates of such Trust or the reduction of the Pool Balance
          of such Trust) shall be added to the amount of such Expected
          Distributions.

               "Expiry Date" with respect to any Primary Liquidity Facility,
          shall have the meaning set forth in such Primary Liquidity Facility.

               "Facility Office" with respect to any Primary Liquidity
          Provider, shall have the meaning set forth in the related Primary
          Liquidity Facility.

               "Fee Letter" with respect to any Primary Liquidity Facility,
          shall have the meaning set forth in such Primary Liquidity Facility.

               "Final Distributions" means, with respect to the Certificates
          of any Trust on any Distribution Date, the sum of (a) the aggregate
          amount of all accrued and unpaid interest on such Certificates
          (excluding interest, if any, payable with respect to the Deposits
          relating to such Trust) and (b) the Pool Balance of such
          Certificates as of the immediately preceding Distribution Date (less
          the amount of the Deposits for such Class of Certificates as of such
          preceding Distribution Date other than any portion of such Deposits
          thereafter used to acquire Equipment Notes pursuant to the Note
          Purchase Agreement). For purposes of calculating Final Distributions
          with respect to the Certificates of any Trust, any Additional
          Payment paid on the Equipment Notes held in such Trust which has not
          been distributed to the Certificateholders of such Trust (other than
          such Additional Payment or a portion thereof applied to the payment
          of interest on the Certificates of such Trust or the reduction of
          the Pool Balance of such Trust) shall be added to the amount of such
          Final Distributions.

                                     -15-
<PAGE>

               "Final Drawing" means, in respect of a Primary Liquidity
          Facility, a borrowing or drawing, other than an Interest Drawing, a
          Downgrade Drawing or a Non-Extension Drawing, of all available and
          undrawn amounts under such Primary Liquidity Facility in accordance
          with the provisions thereof.

               "Final Legal Distribution Date" means, for the Class G-1
          Certificates, November 20, 2015, for the Class G-2 Certificates, May
          20, 2023, for the Class C-1 Certificates, November 20, 2013 and for
          the Class C-2 Certificates, November 20, 2013.

               "Final Order" has the meaning assigned to such term in each
          Policy.

               "Financing Agreement" means each of the Participation
          Agreements and the Note Purchase Agreement.

               "Fitch" means Fitch Ratings.

               "Guarantor" means Northwest Airlines Corporation, a Delaware
          corporation and its successors and assigns.

               "Indenture" means each of the Trust Indentures entered into by
          the Loan Trustee, and the Owner Trustee or Northwest, pursuant to
          the Note Purchase Agreement, in each case as the same may be
          amended, supplemented or otherwise modified from time to time in
          accordance with its terms.

               "Indenture Default" means, with respect to any Indenture, any
          Event of Default (as such term is defined in such Indenture)
          thereunder.

               "Interest Drawing" has the meaning assigned to such term in
          Section 3.6(a).

               "Interest Payment Date" means, with respect to any Primary
          Liquidity Facility, each date on which interest is due and payable
          under such Primary Liquidity Facility on a Downgrade Drawing,
          Non-Extension Drawing or Final Drawing thereunder.

               "Interest Period" has the meaning assigned to such term in the
          Indentures.

               "Investment Earnings" means investment earnings on funds on
          deposit in the Trust Accounts net of losses and investment expenses
          of the Subordination Agent in making such investments.

               "Lease" means, with respect to any Indenture relating to a
          Leased Aircraft, the "Lease" referred to therein.

               "Leased Aircraft" has the meaning assigned to such term in the
          preliminary statements of this Agreement.

               "Leased Aircraft Indenture" means, with respect to each Leased
          Aircraft, the Indenture pertaining to such Aircraft.

                                     -16-
<PAGE>

               "LIBOR" has the meaning assigned to such term in the Reference
          Agency Agreement.

               "Lien" means any mortgage, pledge, lien, charge, claim,
          disposition of title, encumbrance, lease, sublease, sub-sublease or
          security interest of any kind, including, without limitation, any
          thereof arising under any conditional sales or other title retention
          agreement.

               "Liquidity Event of Default" with respect to any Primary
          Liquidity Facility, has the meaning assigned to such term in such
          Primary Liquidity Facility.

               "Liquidity Expenses" means, with respect to the Primary
          Liquidity Facilities, all Liquidity Obligations other than (i) the
          principal amount of any Drawings under the Primary Liquidity
          Facilities and (ii) any interest accrued on any Liquidity
          Obligations.

               "Liquidity Facility" means, at any time, the Class G-1 Primary
          Liquidity Facility, the Class G-1 Above-Cap Liquidity Facility, the
          Class G-2 Primary Liquidity Facility, the Class C-1 Primary
          Liquidity Facility, the Class C-1 Above-Cap Liquidity Facility or
          the Class C-2 Primary Liquidity Facility, as applicable.

               "Liquidity Obligations" means all principal, interest, fees and
          other amounts owing to the Primary Liquidity Provider under the
          Primary Liquidity Facilities, the Fee Letters and Section 7 of the
          Participation Agreements.

               "Liquidity Provider" means, at any time, any Primary Liquidity
          Provider or any Above-Cap Liquidity Provider, as applicable.

               "Loan Trustee" means, with respect to any Indenture, the
          indenture trustee thereunder.

               "LP Incumbency Certificate" has the meaning assigned to such
          term in Section 2.5(c).

               "LP Representatives" has the meaning assigned to such term in
          Section 2.5(c).

               "LTV Appraisal" means a current fair market appraisal (which
          may be a "desktop" appraisal) performed by any Appraiser or any
          other nationally recognized appraiser on the basis of an
          arm's-length transaction between an informed and willing purchaser
          under no compulsion to buy and an informed and willing seller under
          no compulsion to sell and both having knowledge of all relevant
          facts.

               "LTV Collateral Amount" of any Aircraft for any Class of
          Certificates (other than the Class D Certificates) on any
          Distribution Date means the lesser of (i) the LTV Ratio for such
          Class of Certificates multiplied by the Appraised Current Market
          Value of such Aircraft (or with respect to any such Aircraft which
          has suffered an Event of Loss under and as defined in the relevant
          Lease (in the case of a Leased Aircraft) or Indenture (in the case
          of an Owned Aircraft), the amount of the insurance proceeds paid to
          the related Loan Trustee in respect thereof to the extent then held
          by such Loan Trustee (and/or on

                                     -17-
<PAGE>

          deposit in the Special Payments Account) or payable to such Loan
          Trustee in respect thereof) and (ii) the outstanding principal
          amount of the Equipment Notes secured by such Aircraft after giving
          effect to any principal payments of such Equipment Notes on or
          before such Distribution Date.

               "LTV Ratio" means, for the Class G-1 and Class G-2
          Certificates, 55.2%, for the Class C-1 and Class C-2 Certificates,
          64.9% and for the Class D Certificates, upon their issuance, 73.0%.

               "Make-Whole Premium" has the meaning specified in the
          Indentures.

               "Maximum Available Commitment," with respect to any Primary
          Liquidity Facility, has the meaning specified therein.

               "Minimum Sale Price" means, with respect to any Aircraft or the
          Equipment Notes issued in respect of such Aircraft, at any time, the
          lesser of (a) 75% of the Appraised Current Market Value of such
          Aircraft and (b) the aggregate outstanding principal amount of such
          Equipment Notes, plus accrued and unpaid interest thereon.

               "Moody's" means Moody's Investors Service, Inc.

               "Non-Controlling Party" means, at any time, any Trustee,
          Liquidity Provider or Policy Provider which is not the Controlling
          Party at such time.

               "Non-Extended Facility" has the meaning provided in Section
          3.6(d).

               "Non-Extension Drawing" has the meaning provided in Section
          3.6(d).

               "Non-Performing Equipment Note" means an Equipment Note issued
          pursuant to an Indenture that is not a Performing Equipment Note.

               "Northwest" means Northwest Airlines, Inc., a Minnesota
          corporation, and its successors and assigns.

               "Northwest Bankruptcy Event" means the occurrence and
          continuation of any of the following:

               (a) the commencement of an involuntary case or other proceeding
          in respect of Northwest in an involuntary case under the federal
          bankruptcy laws, as now or hereafter constituted, or any other
          applicable federal or state bankruptcy, insolvency or other similar
          law in the United States or seeking the appointment of a receiver,
          liquidator, assignee, custodian, trustee, sequestrator (or similar
          official) of Northwest or for all or substantially all of its
          property, or seeking the winding-up or liquidation of its affairs
          and the continuation of any such case or other proceeding
          undismissed and unstayed for a period of ninety (90) consecutive
          days or an order, judgment or decree shall be entered in any
          proceeding by any court of competent jurisdiction appointing,
          without the consent of Northwest, a receiver, trustee or liquidator
          of Northwest, or

                                     -18-
<PAGE>

          of any substantial part of its property, or sequestering any
          substantial part of the property of Northwest and any such order,
          judgment or decree or appointment or sequestration shall be final or
          shall remain in force undismissed, unstayed or unvacated for a
          period of ninety (90) days after the date of entry thereof; or

               (b) the commencement by Northwest of a voluntary case under the
          federal bankruptcy laws, as now constituted or hereafter amended, or
          any other applicable federal or state bankruptcy, insolvency or
          other similar law in the United States, or the consent by Northwest
          to the appointment of or taking possession by a receiver,
          liquidator, assignee, trustee, custodian, sequestrator (or other
          similar official) of Northwest or for all or substantially all of
          its property, or the making by Northwest of any assignment for the
          benefit of creditors or the taking by Northwest of any corporate
          action to authorize any of the foregoing.

               "Northwest Provisions" has the meaning provided in Section
          9.1(a).

               "Note Purchase Agreement" means the Note Purchase Agreement
          dated as of the date hereof among Northwest, each Trustee, the
          Escrow Agent, the Subordination Agent and the Paying Agent.

               "Notice of Avoided Payment", with respect to a Policy, has the
          meaning assigned to such term in such Policy.

               "Notice of Nonpayment", with respect to a Policy, has the
          meaning assigned to such term in such Policy.

               "NWA Corp." means Northwest Airlines Corporation (formerly
          known as Newbridge Parent Corporation), a Delaware corporation, and
          its successors and assigns.

               "Officer's Certificate" of any Person means a certification
          signed by a Responsible Officer of such Person.

               "Operative Agreements" means this Agreement, the Liquidity
          Facilities, the Policies, the Policy Provider Agreement, the Policy
          Fee Letter, the Fee Letter, the Indentures, the Trust Agreements,
          the Underwriting Agreement, the Purchase Agreement, the Financing
          Agreements, the Leases, the Reference Agency Agreement, the
          Equipment Notes and the Certificates, together with all exhibits and
          schedules included with any of the foregoing and each of the other
          documents and instruments referred to in the definitions of
          "Operative Documents" contained in the Leases or any Owned Aircraft
          Indenture.

               "Outstanding" means, when used with respect to each Class of
          Certificates, as of the date of determination, all Certificates of
          such Class theretofore authenticated and delivered under the related
          Trust Agreement, except:

                    (i) Certificates of such Class theretofore cancelled by
               the Registrar (as defined in such Trust Agreement) or delivered
               to the Trustee thereunder or such Registrar for cancellation;

                                     -19-
<PAGE>

                    (ii) Certificates of such Class for which money in the
               full amount required to make the final distribution with
               respect to such Certificates pursuant to Section 11.01 of such
               Trust Agreement has been theretofore deposited with the related
               Trustee in trust for the holders of such Certificates as
               provided in Section 4.01 of such Trust Agreement pending
               distribution of such money to such Certificateholders pursuant
               to such final distribution payment; and

                    (iii) Certificates of such Class in exchange for or in
               lieu of which other Certificates have been authenticated and
               delivered pursuant to such Trust Agreement;

          provided, however, that in determining whether the holders of the
          requisite Outstanding amount of such Certificates have given any
          request, demand, authorization, direction, notice, consent or waiver
          hereunder, any Certificates owned by Northwest or any of its
          Affiliates shall be disregarded and deemed not to be Outstanding,
          except that, in determining whether such Trustee shall be protected
          in relying upon any such request, demand, authorization, direction,
          notice, consent or waiver, only Certificates that such Trustee knows
          to be so owned shall be so disregarded. Certificates so owned that
          have been pledged in good faith may be regarded as Outstanding if
          the pledgee establishes to the satisfaction of the applicable
          Trustee the pledgee's right so to act with respect to such
          Certificates and that the pledgee is not Northwest or any of its
          Affiliates.

               "Overdue Scheduled Payment" means any Scheduled Payment which
          is not in fact received by the Subordination Agent within five days
          of the Scheduled Payment Date relating thereto.

               "Owned Aircraft" has the meaning assigned to such term in the
          preliminary statements of this Agreement.

               "Owned Aircraft Indenture" means, with respect to each Owned
          Aircraft, the Indenture pertaining to such Aircraft.

               "Owner Participant" means, with respect to any Indenture
          pertaining to a Leased Aircraft, the Owner Participant (as defined
          therein) and any permitted successor or assign of such Owner
          Participant.

               "Owner Trustee" means, with respect to any Indenture pertaining
          to a Leased Aircraft, the Owner Trustee (as defined therein) not in
          its individual capacity but solely as trustee under the related
          owner trust agreement, together with any successor trustee appointed
          pursuant to such owner trust agreement.

               "Participation Agreements" means, with respect to each
          Indenture, each of the Participation Agreements referred to therein,
          as the same may be amended, supplemented or otherwise modified from
          time to time in accordance with its terms.

               "Pass Through Trust Agreement" means the Pass Through Trust
          Agreement, dated as of June 3, 1999 by and among the Guarantor,
          Northwest and the State Street Bank and Trust Company of
          Connecticut, National Association, not in its individual

                                     -20-
<PAGE>

          capacity except as expressly provided therein, but solely as trustee
          (in such capacity, together with its successors in such capacity,
          the "Pass Through Trustee").

               "Payee" has the meaning assigned to such term in Section
          2.4(e).

               "Paying Agent" means State Street Bank and Trust Company, as
          paying agent under each Escrow and Paying Agent Agreement, together
          with its successors in such capacity.

               "Paying Agent Account" has the meaning specified in each Escrow
          and Paying Agent Agreement.

               "Performing Equipment Note" means an Equipment Note issued
          pursuant to an Indenture with respect to which no payment default
          has occurred and is continuing (without giving effect to any
          Acceleration); provided that if a bankruptcy proceeding is commenced
          involving Northwest under Title 11 of the United State Code (the
          "U.S. Bankruptcy Code"), (i) any payment default existing during the
          60-day period under Section 1110(a)(2)(A) of the U.S. Bankruptcy
          Code (or such longer period as may apply under Section 1110(b) of
          the U.S. Bankruptcy Code) (the "Section 1110 Period") will not be
          taken into consideration until the expiration of the applicable
          period, (ii) any payment default occurring after the date of the
          order of relief in such proceeding but during the Section 1110
          Period will not be taken into consideration if such payment default
          is cured under Section 1110(a)(2)(B) of the U.S. Bankruptcy Code
          before the later of 30 days after the date of such default or the
          expiration of the Section 1110 Period and (iii) any payment default
          occurring after the Section 1110 Period will not be taken into
          consideration if such payment default is cured before the end of the
          grace period, if any, set forth in the related Lease (in the case of
          a Leased Aircraft) or Owned Aircraft Indenture (in the case of an
          Owned Aircraft).

               "Performing Note Deficiency" means any time that less than 65%
          of the then aggregate outstanding principal amount of all Equipment
          Notes are Performing Equipment Notes.

               "Person" means any individual, corporation, limited liability
          company, partnership, joint venture, association, joint-stock
          company, trust, trustee, unincorporated organization or government
          or any agency or political subdivision thereof.

               "Policy" means the Class G-1 Policy or the Class G-2 Policy, as
          applicable.

               "Policy Account" means the Class G-1 Policy Account or the
          Class G-2 Policy Account, as applicable.

               "Policy Drawing" means any payment of a claim under the Policy.

               "Policy Expenses" means all amounts (including amounts in
          respect of expenses) owing to the Policy Provider under the Policy
          Provider Agreement or the Participation Agreements other than (i)
          any amounts due under the Policy Fee Letter, (ii) the amount of any
          Policy Drawing and any interest accrued thereon, (iii) reimbursement
          of and interest

                                     -21-
<PAGE>

          on the Liquidity Obligations paid to the Liquidity Provider by the
          Policy Provider, (iv) any indemnity payments owed to the Policy
          Provider, (v) any amounts that the Policy Provider is entitled to
          receive by virtue of the subrogation rights of the Policy Provider
          hereunder, including, without limitation, fees and expenses incurred
          in connection with the enforcement of such rights and (vi) any
          Excess Reimbursement Obligations.

               "Policy Fee Letter" means the fee letter, dated as of August 5,
          2002 from the Policy Provider to Northwest and the Subordination
          Agent setting forth the Policy Premium and certain other amounts
          payable in respect of the Policies.

               "Policy Premium" has the meaning specified in the Policy Fee
          Letter.

               "Policy Provider" means MBIA Insurance Corporation or any
          successor thereto, as issuer of the Policies.

               "Policy Provider Agreement" means the Insurance and Indemnity
          Agreement, dated as of the date of issuance of the Certificates,
          among the Subordination Agent, the Class G-1 Trustee, Class G-2
          Trustee, Northwest and the Policy Provider pursuant to which, among
          other things, the Subordination Agent agrees to reimburse the Policy
          Provider for amounts paid pursuant to claims made under the Policy.

               "Policy Provider Default" means the occurrence of any of the
          following events (a) the Policy Provider fails to make a payment
          required under the Policy in accordance with its terms and such
          failure remains unremedied for two Business Days following the
          delivery of Written Notice of such failure to the Policy Provider or
          (b) the Policy Provider (i) files any petition or commences any case
          or proceeding under any provisions of any federal or state law
          relating to insolvency, bankruptcy, rehabilitation, liquidation or
          reorganization, (ii) makes a general assignment for the benefit of
          its creditors or (iii) has an order for relief entered against it
          under any federal or state law relating to insolvency, bankruptcy,
          rehabilitation, liquidation or reorganization that is final and
          nonappealable, or (c) a court of competent jurisdiction, the New
          York Insurance Department or another competent regulatory authority
          enters a final and nonappealable order, judgment or decree (i)
          appointing a custodian, trustee, agent or receiver for the Policy
          Provider or for all or any material portion of its property or (ii)
          authorizing the taking of possession by a custodian, trustee, agent
          or receiver of the Policy Provider (or taking of possession of all
          or any material portion of the Policy Provider's property).

               "Policy Provider Election" has the meaning assigned to such
          term in Section 3.7(c).

               "Policy Provider Incumbency Certificate" has the meaning
          assigned to such term in Section 2.5(d).

               "Policy Provider Obligations" means all reimbursement and other
          amounts, including fees and indemnities, due to the Policy Provider
          under the Policy Provider Agreement, but shall not include (i) any
          amounts due under the Policy Fee Letter or (ii) any interest on
          Policy Drawings except, if the Class G-1 Liquidity Provider or the
          Class G-2 Liquidity Provider has failed to honor its obligation to
          make a payment on any

                                     -22-
<PAGE>

          Interest Drawing in respect of the Class G-1 Certificates or the
          Class G-2 Certificates, as applicable, interest on the portion of
          any Policy Drawing made to cover the shortfall attributable to such
          failure by the Liquidity Provider in an amount equal to the amount
          of interest that would have accrued on such Interest Drawing if such
          Interest Drawing had been made at the interest rate applicable to
          such Interest Drawing until such Policy Drawing has been repaid in
          full, up to a maximum of six such Policy Drawings under the
          applicable Policy. For the avoidance of doubt, and subject to the
          effect of payment priorities with respect to Excess Reimbursement
          Obligations, Policy Provider Obligations include reimbursement of
          and interest on the Liquidity Obligations in respect of the
          Liquidity Facilities paid by the Policy Provider to the Liquidity
          Provider.

               "Policy Provider Representative" has the meaning specified in
          Section 2.5(d).

               "Pool Balance" means, with respect to each Trust (other than
          the Class D Trust) or the Certificates issued by any Trust (other
          than the Class D Trust), as of any date, (i) the original aggregate
          face amount of the Certificates of such Trust which, in the case of
          the Class G-1 Trust, is $487,131,000, in the case of the Class G-2
          Trust, $150,000,000, in the case of the Class C-1 Trust,
          $56,000,000, and, in the case of the Class C-2 Trust, $56,000,000,
          less (ii) the aggregate amount of all payments made in respect of
          the Certificates of such Trust or in respect of Deposits relating to
          such Trust other than payments made in respect of interest or
          Additional Payments thereon or reimbursement of any costs and
          expenses in connection therewith. The Pool Balance for the Class D
          Trust or the Class D Certificates, means, as of any date, (x) the
          original aggregate amount of all of the Series D Equipment Notes
          acquired by the Class D Trustee on or prior to such date less (y)
          the aggregate amount of all payments made in respect of the Class D
          Certificates other than payments made in respect of interest or
          premium thereon or reimbursement of any costs and expenses in
          connection therewith. The Pool Balance for each Trust or the
          Certificates issued by any Trust as of any Distribution Date shall
          be computed after giving effect to any special distribution with
          respect to unused Deposits, any payment of principal, of the
          Equipment Notes or payment with respect to other Trust Property held
          in such Trust and the distribution thereof to be made on such date
          and, with respect to the Class G-1 and Class G-2 Trusts, payments
          under the related Policy for the benefit of the Class G-1 and Class
          G-2 Certificate respectively (other than in respect of the Liquidity
          Facilities and interest on the Class G-1 or Class G-2 Certificates).

               "Premium Percentage" has the meaning set forth in the Policy
          Fee Letter.

               "Prepayment Premium" has the meaning set forth in the
          Indenture.

               "Primary Cash Collateral Account" means the Class G-1 Primary
          Cash Collateral Account, the Class G-2 Primary Cash Collateral
          Account, Class C-1 Primary Cash Collateral Account or the Class C-2
          Primary Cash Collateral Account, as applicable.

               "Primary Liquidity Facility" means the Class G-1 Primary
          Liquidity Facility, the Class G-2 Primary Liquidity Facility, the
          Class C-1 Primary Liquidity Facility or the Class C-2 Primary
          Liquidity Facility, as applicable.

                                     -23-
<PAGE>

               "Primary Liquidity Provider" means the Class G-1 Primary
          Liquidity Provider, the Class G-2 Primary Liquidity Provider, the
          Class C-1 Primary Liquidity Provider or the Class C-2 Primary
          Liquidity Provider, as applicable.

               "Proceeding" means any suit in equity, action at law or other
          judicial or administrative proceeding.

                  "PTC Event of Default" means, with respect to each Trust
         Agreement, the failure to pay within 10 Business Days of the due date
         thereof: (i) the outstanding Pool Balance of the applicable Class of
         Certificates on the Final Legal Distribution Date for such Class
         (unless, in the case of the Class G-1 or Class G-2 Certificates, the
         Subordination Agent shall have made a drawing under the related
         Policy in an aggregate amount sufficient to pay such outstanding Pool
         Balance and shall have distributed such amount to the Class G-1
         and/or Class G-2 Trustee, as the case may be), or (ii) interest due
         on such Certificates on any Distribution Date (unless the
         Subordination Agent shall have made an Interest Drawing or a
         withdrawal from the Primary Cash Collateral Account relating to a
         Primary Liquidity Facility or, in the case of the Class G-1 or Class
         C-1 Certificates a withdrawal from any related Above-Cap Account or,
         in the case of the Class G-1 or Class G-2 Certificates, a drawing
         under the related Policy, with respect thereto in an aggregate amount
         sufficient to pay such interest and shall have distributed such
         amount to the Trustee entitled thereto).

                  "Rating Agencies" means, collectively, at any time, each
         nationally recognized rating agency which shall have been requested
         to rate the Certificates (other than the Class D Certificates) and
         which shall then be rating the Certificates (other than the Class D
         Certificates). Initially, the Rating Agencies shall consist of
         Moody's, Standard & Poor's and Fitch.

               "Ratings Confirmation" means, with respect to any action
          proposed to be taken, a written confirmation from each of the Rating
          Agencies (without regard to the Policies in the case of the Class
          G-1 and Class G-2 Certificates) that such action would not result in
          (i) a reduction of the rating for any Class of Certificates below
          the then current rating for such Class of Certificates or (ii) a
          withdrawal or suspension of the rating of any Class of Certificates.

               "Reference Agency Agreement" means the Reference Agency
          Agreement, dated as of the date hereof, among Northwest, State
          Street Bank and Trust Company, as the reference agent thereunder,
          the Subordination Agent, the Loan Trustee and the Escrow Agent.

               "Regular Distribution Dates" means each February 20, May 20,
          August 20 and November 20, commencing on August 20, 2002; provided,
          however, that, if any such day shall not be a Business Day, the
          related distribution shall be made on the next succeeding Business
          Day and interest will be added for such additional period in the
          case of the Class G-1 Certificates, Class C-1 Certificate or Class D
          Certificates but not in the case of the Class G-2 Certificates or
          Class C-2 Certificates.

                                     -24-
<PAGE>

               "Replacement Above-Cap Liquidity Facility" means, for either
          Above-Cap Liquidity Facility, an irrevocable interest rate cap
          agreement (or agreements) for the same term as the Above-Cap
          Liquidity Facility being replaced, in substantially the form of the
          Above-Cap Liquidity Facility being replaced or in such other form
          (which may include a letter of credit) as shall permit the Rating
          Agencies to issue in writing, and the Rating Agencies shall have
          issued in writing, a Ratings Confirmation (before the downgrading of
          the ratings on the Certificates, if any, as a result of any
          downgrading of the applicable Above-Cap Liquidity Provider), issued
          by a Person (or Person(s)) having short-term unsecured debt ratings
          or corporate credit ratings, as the case may be, issued by Fitch,
          Moody's and Standard & Poor's that are equal to or higher than the
          applicable Threshold Rating (which Person, in the case of the Class
          G-1 Above-Cap Liquidity Facility, will be consented to by the Policy
          Provider, which consent shall not be unreasonably withheld or
          denied), provided that no prior Ratings Confirmation or consent of
          the Policy Provider shall be required under the circumstances
          specified in Part 5(i) of the Schedule to the ISDA Master Agreement
          forming a part of each Above-Cap Liquidity Facility.

               "Replacement Above-Cap Liquidity Provider" means a Person (or
          Persons) who issues a Replacement Above-Cap Liquidity Facility.

               "Replacement Primary Liquidity Facility" means, for any Primary
          Liquidity Facility, an irrevocable revolving credit agreement for
          the same term as the Primary Liquidity Facility being replaced in
          substantially the form of the Primary Liquidity Facility being
          replaced, including reinstatement provisions, or in such other form
          (which may include a letter of credit) as shall permit the Rating
          Agencies to confirm in writing pursuant to Section 3.6(e)(iv)(x)
          their respective ratings (in the case of the Class G-1 and Class G-2
          Certificates, without regard to the Policies) then in effect for the
          related Class of Certificates (before the downgrading of such
          ratings, if any, as a result of the downgrading of the applicable
          Primary Liquidity Provider), and, in the case of the Class G-1
          Primary Liquidity Facility or the Class G-2 Primary Liquidity
          Facility, which is consented to by the Policy Provider, which
          consent shall not be unreasonably withheld or delayed, in a face
          amount (or in an aggregate face amount) equal to the Required Amount
          for the related Class of Certificates as of the date of replacement
          for such Primary Liquidity Facility and issued by a Person (or
          Person(s)) having short-term unsecured debt ratings or corporate
          credit ratings, as the case may be, issued by Moody's, Fitch (if
          rated by Fitch) and Standard & Poor's that are equal to or higher
          than the applicable Threshold Rating. Without limitation of the form
          that a Replacement Primary Liquidity Facility otherwise may have
          pursuant to the preceding sentence, a Replacement Primary Liquidity
          Facility for any Class of Certificates may have a stated expiration
          date earlier than 15 days after the Final Legal Distribution Date of
          such Class of Certificates so long as such Replacement Primary
          Liquidity Facility provides for a Non-Extension Drawing as
          contemplated by Section 3.6(d) hereof.

               "Replacement Primary Liquidity Provider" means a Person (or
          Person(s)) who issues a Replacement Primary Liquidity Facility.

               "Required Amount" means, with respect to each Primary Liquidity
          Facility and each Primary Cash Collateral Account related thereto,
          for any day, the sum of the

                                     -25-
<PAGE>

          aggregate amount of interest, calculated at the rate per annum equal
          to the applicable Capped Interest Rate (in the case of each of the
          Class G-1 and Class C-1 Primary Liquidity Facility and Primary Cash
          Collateral Account) or at the applicable Stated Interest Rate (in
          the case of the Class G-2 and Class C-2 Primary Liquidity Facility
          and Primary Cash Collateral Account), that in each case would be
          payable on the related Class of Certificates on each of the six
          successive Regular Distribution Dates immediately following such day
          or, if such day is a Regular Distribution Date, on such day and the
          succeeding five Regular Distribution Dates, in each case calculated
          on the basis of the Pool Balance of such Class of Certificates on
          such date and without regard to expected future payments of
          principal on such Class of Certificates. The Pool Balance for
          purposes of the definition of Required Amount with respect to the
          Class G-1 and Class G-2 Liquidity Facilities shall, in the event of
          any Policy Provider Election, be deemed to be reduced by an amount
          (if positive) by which (a) the outstanding principal balance of the
          Series G-1 and Series G-2 Equipment Notes in respect of which such
          Policy Provider Election has been made shall exceed (b) the amount
          of any Policy Drawings previously paid by the Policy Provider in
          respect of principal on such Series G-1 and Series G-2 Equipment
          Notes.

               "Responsible Officer" means (i) with respect to the
          Subordination Agent and each of the Trustees, any officer in the
          corporate trust administration department of the Subordination Agent
          or such Trustee or any other officer customarily performing
          functions similar to those performed by the Persons who at the time
          shall be such officers, respectively, or to whom any corporate trust
          matter is referred because of his knowledge of and familiarity with
          a particular subject and (ii) with respect to each Liquidity
          Provider, any authorized officer or agent of such Liquidity
          Provider.

               "Scheduled Payment" means, with respect to any Equipment Note,
          (i) any payment of principal or interest on such Equipment Note
          (other than an Overdue Scheduled Payment) due from the obligor
          thereon, which payment represents the installment of principal at
          the stated maturity of such installment of principal on such
          Equipment Note, the payment of regularly scheduled interest accrued
          on the unpaid principal amount of such Equipment Note, or both or
          (ii) any payment of interest on the corresponding Class of
          Certificates with funds drawn under the related Primary Liquidity
          Facility or withdrawn from the Primary Cash Collateral Accounts for
          such Class of Certificates or, in the case of the Class G-1 or Class
          C-1 Certificates, from the related Above-Cap Account or, in the case
          of any Series G-1 or Series G-2 Equipment Note, drawn under the
          related Policy; provided that any payment of principal or Additional
          Payment, if any, or interest resulting from the redemption or
          purchase of any Equipment Note shall not constitute a Scheduled
          Payment.

               "Scheduled Payment Date" means, with respect to any Scheduled
          Payment, the date on which such Scheduled Payment is scheduled to be
          made.

               "Section 2.4(b) Fraction" has the meaning assigned to such term
          in Section 2.4(b)(i).

                                     -26-
<PAGE>

               "Selected Aircraft" has the meaning assigned to such term in
          the Note Purchase Agreement.

               "Series C-1 Equipment Notes" means the Series C-1 Equipment
          Notes issued pursuant to certain Indentures by Northwest and
          authenticated by the Loan Trustee thereunder, and any such Equipment
          Notes issued in exchange therefor or replacement thereof pursuant to
          the terms of such Indenture.

               "Series C-2 Equipment Notes" means the 9.055% Series C-2
          Equipment Notes issued pursuant to certain Indentures by Northwest,
          as the case may be, and authenticated by the Loan Trustee
          thereunder, and any such Equipment Notes issued in exchange therefor
          or replacement thereof pursuant to the terms of such Indenture.

               "Series D Equipment Notes" means the equipment notes, if any,
          issued pursuant to certain Indentures by Northwest, as the case may
          be, and authenticated by the Loan Trustee thereunder, and designated
          as "Series D" thereunder, and any such equipment notes issued in
          exchange therefor or replacement thereof pursuant to the terms of
          such Indenture.

               "Series G-1 Equipment Notes" means the Series G-1 Equipment
          Notes issued pursuant to certain Indentures by Northwest and
          authenticated by the Loan Trustee thereunder, and any such Equipment
          Notes issued in exchange therefor or replacement thereof pursuant to
          the terms of such Indenture.

               "Series G-2 Equipment Notes" means the 6.264% Series G-2
          Equipment Notes issued pursuant to certain Indentures by Northwest
          and authenticated by the Loan Trustee thereunder, and any such
          Equipment Notes issued in exchange therefor or replacement thereof
          pursuant to the terms of such Indenture.

               "Special Distribution Date" means, (i) with respect to any
          Special Payment, the date chosen by the Subordination Agent pursuant
          to Section 2.4(a) or Section 3.7(b) for the distribution of such
          Special Payment in accordance with this Agreement, (ii) an Election
          Distribution Date or (iii) each date designated in Section 3.7(c) or
          Section 3.7(e) as a Special Distribution Date.

               "Special Payment" means any payment (other than a Scheduled
          Payment) in respect of, or any proceeds of, any Equipment Note,
          Trust Indenture Estate (as defined in the Indenture in respect of a
          Leased Aircraft) or Collateral (as defined in the Indenture in
          respect to an Owned Aircraft), including Overdue Scheduled Payments,
          payments in respect of the redemption or repurchase of any Equipment
          Note and payments in respect of the sale of any Equipment Note to
          the related Owner Trustee, Owner Participant or any other Person.

               "Special Payments Account" means the Eligible Deposit Account
          created pursuant to Section 2.2 as a sub-account to the Collection
          Account.

               "Specified Investments" has the meaning assigned to such term
          in the Pass Through Trust Agreement.

                                     -27-
<PAGE>

               "Standard & Poor's" means Standard & Poor's Ratings Services, a
          division of The McGraw-Hill Companies, Inc.

               "State Street of Connecticut" has the meaning assigned to it in
          the preamble to this Agreement.

               "Stated Amount" with respect to any Primary Liquidity Facility
          at any time, means the Maximum Commitment (as defined in such
          Primary Liquidity Facility) at such time of the applicable Primary
          Liquidity Provider thereunder.

               "Stated Expiration Date" has the meaning specified in Section
          3.6(d).

               "Stated Interest Rate" means (i) with respect to the Class G-1
          Certificates, for any Interest Period, LIBOR for such Interest
          Period plus 0.75% per annum; (ii) with respect to the Class G-2
          Certificates, 6.264% per annum; (iii) with respect to the Class C-1
          Certificates, for any Interest Period, LIBOR for such Interest
          Period plus 4.50% per annum; (iv) with respect to the Class C-2
          Certificates, 9.055% per annum; and (v) with respect to the Class D
          Certificates, the interest rate specified in the Class D Trust
          Agreement.

               "Subordination Agent" has the meaning assigned to it in the
          preamble to this Agreement.

               "Subordination Agent Incumbency Certificate" has the meaning
          assigned to such term in Section 2.5(a).

               "Subordination Agent Representative" has the meaning assigned
          to such term in Section 2.5(a).

               "Tax" and "Taxes" mean any and all taxes, fees, levies, duties,
          tariffs, imposts, and other charges of any kind (together with any
          and all interest, penalties, loss, damage, liability, expense,
          additions to tax and additional amounts or costs incurred or imposed
          with respect thereto) imposed or otherwise assessed by the United
          States or by any state, local or foreign government (or any
          subdivision or agency thereof) or other taxing authority, including,
          without limitation: taxes or other charges on or with respect to
          income, franchises, windfall or other profits, gross receipts,
          property, sales, use, capital stock, payroll, employment, social
          security, workers' compensation, unemployment compensation, or net
          worth and similar charges; taxes or other charges in the nature of
          excise, withholding, ad valorem, stamp, transfer, value added, taxes
          on goods and services, gains taxes, license, registration and
          documentation fees, customs duties, tariffs, and similar charges.

               "Termination Amount", with respect to any Above-Cap Liquidity
          Facility, has the meaning assigned to such term in such Above-Cap
          Liquidity Facility.

               "Termination Notice" with respect to any Primary Liquidity
          Facility has the meaning assigned to such term in such Primary
          Liquidity Facility.

                                     -28-
<PAGE>

               "Threshold Rating" means the short-term unsecured debt rating
          of F-1 by Fitch (if rated by Fitch) and P-1 by Moody's and the
          short-term corporate credit rating of A-1 by Standard & Poor's.

               "Treasury Regulations" means regulations, including proposed or
          temporary regulations, promulgated under the Code. References herein
          to specific provisions of proposed or temporary regulations shall
          include analogous provisions of final Treasury Regulations or other
          successor Treasury Regulations.

               "Triggering Event" means (x) the occurrence of an Indenture
          Default under all of the Indentures resulting in a PTC Event of
          Default with respect to the most senior Class of Certificates then
          Outstanding, (y) the Acceleration of all of the outstanding
          Equipment Notes (provided that, with respect to the period prior to
          the Delivery Period Expiry Date, such Equipment Notes have an
          aggregate principal balance in excess of $300,000,000) or (z) the
          occurrence of a Northwest Bankruptcy Event.

               "Trust" means any of the Class G-1 Trust, the Class G-2 Trust,
          the Class C-1 Trust, the Class C-2 Trust or, upon its formation, the
          Class D Trust.

               "Trust Accounts" has the meaning assigned to such term in
          Section 2.2(a).

               "Trust Agreement" means any of the Class G-1 Trust Agreement,
          the Class G-2 Trust Agreement, Class C-1 Trust Agreement, Class C-2
          Trust Agreement or, upon the execution thereof, the Class D Trust
          Agreement.

               "Trust Property" with respect to any Trust, has the meaning set
          forth in the Trust Agreement for such Trust.

               "Trust Supplement" means an agreement supplemental to the Pass
          Through Trust Agreement pursuant to which (i) a separate trust is
          created for the benefit of the holders of Certificates of a series,
          (ii) the issuance of the Certificates of a series representing
          fractional undivided interests in such trust is authorized and (iii)
          the terms of the Certificates of such series are established, as
          such agreement may from time to time be supplemented, amended or
          otherwise modified.

               "Trustee" means any of the Class G-1 Trustee, the Class G-2
          Trustee, the Class C-1 Trustee, the Class C-2 Trustee or upon the
          execution of the Class D Trust Agreement, the Class D Trustee.

               "Trustee Incumbency Certificate" has the meaning assigned to
          such term in Section 2.5(b).

               "Trustee Representatives" has the meaning assigned to such term
          in Section 2.5(b).

               "Underwriters" means the several Underwriters listed as such in
          the Underwriting Agreement.

                                     -29-
<PAGE>

               "Underwriting Agreement" means the Underwriting Agreement dated
          July 29, 2002, by and among the Underwriters, Northwest and the
          Guarantor, relating to the purchase of the Class G-1 Certificates,
          the Class G-2 Certificates, the Class C-1 Certificates and the Class
          C-2 Certificates by the Underwriters, as the same may be amended,
          supplemented or otherwise modified from time to time in accordance
          with its terms.

               "Withdrawal Notice" has the meaning specified in Section
          3.6(d).

               "Written Notice" means, from any Trustee, Liquidity Provider,
          the Policy Provider or the Subordination Agent, a written instrument
          executed by the Designated Representative of such Person. An invoice
          delivered by a Primary Liquidity Provider pursuant to Section 3.1 in
          accordance with its normal invoicing procedures shall constitute
          Written Notice under such Section.

                                  ARTICLE II

                       TRUST ACCOUNTS; CONTROLLING PARTY

          Section 2.1. Agreement to Terms of Subordination; Payments from
Monies Received Only. (a) Each Trustee hereby (i) acknowledges and agrees to
the terms of subordination and distribution set forth in this Agreement in
respect of each Class of Certificates, (ii) agrees to enforce such provisions
and cause all payments in respect of the Equipment Notes, the Liquidity
Facilities and the Policies to be applied in accordance with the terms of this
Agreement and (iii) with respect to payments in respect of the Equipment Notes
received by it, agrees to allocate such payments first, to interest payable in
respect of the Certificates of the related Class, second, to Prepayment
Premium, Make-Whole Premium and Break Amount, if any, payable in respect of
the Certificates of the related Class, and third, to principal payable in
respect of the Certificates of the related Class. In addition, each Trustee
hereby agrees to cause the Equipment Notes purchased by the related Trust to
be registered in the name of the Subordination Agent, as agent and trustee for
such Trustee, to be held in trust by the Subordination Agent solely for the
purpose of facilitating the enforcement of the subordination and other
provisions of this Agreement.

          (b) Except as otherwise expressly provided in the next succeeding
sentence of this Section 2.1, all payments to be made by the Subordination
Agent hereunder shall be made only from amounts received by it that constitute
Scheduled Payments, Special Payments and other payments under the Operative
Agreements including payments under Section 7(c) of the Participation
Agreement relating to the Owned Aircraft, Section 7(c) of the Participation
Agreement relating to the Leased Aircraft, payments under Section 7 of the
Note Purchase Agreement or payments under the Liquidity Facilities or amounts
credited to the Trust Accounts, and only to the extent that the Subordination
Agent shall have received sufficient income or proceeds therefrom to enable it
to make such payments in accordance with the terms hereof. Each of the
Trustees and the Subordination Agent hereby agrees and, as provided in each
Trust Agreement, each Certificateholder, by its acceptance of a Certificate,
and each Primary Liquidity Provider, by entering into the Primary Liquidity
Facility to which it is a party, and the Policy Provider, by entering into the
Policy Provider Agreement, has agreed to look solely to such

                                     -30-
<PAGE>

amounts to the extent available for distribution to it as provided in this
Agreement and to the relevant Deposits and that none of the Trustees, Owner
Trustees, Loan Trustees, Owner Participants nor the Subordination Agent is
personally liable to any of them for any amounts payable or any liability
under this Agreement, any Trust Agreement, any Liquidity Facility, the Policy
Provider Agreement or such Certificate, except (in the case of the
Subordination Agent) as expressly provided herein or (in the case of the
Trustees) as expressly provided in each Trust Agreement or (in the case of the
Owner Trustees and the Loan Trustees) as expressly provided in any Operative
Agreement.

          Notwithstanding anything to the contrary in this Agreement and in
the other Operative Agreements, the Certificates do not represent indebtedness
of the related Trust, and references in this Agreement and the Operative
Agreements to accrued interest or principal amounts payable on the
Certificates of any Class are included only for computational purposes. For
purposes of such computations, the Certificates of any Class shall be deemed
to be comprised of interest and principal components, with the principal
component deemed to be the Pool Balance, and the interest component deemed to
equal interest accruing at the Stated Interest Rate for such Class of
Certificates from (i) the later of (1) the date of issuance thereof and (2)
the most recent but preceding Distribution Date to which such interest was
distributed to (ii) the applicable date of determination, such interest to be
considered payable in arrears and to be calculated on the basis of a 360-day
year comprised of twelve 30-day months (in the case of the Class G-2 and Class
C-2 Certificates) or on the basis of the actual number of days elapsed over a
360-day year (in the case of the Class G-1, Class C-1 and Class D
Certificates).

          Section 2.2. Trust Accounts. (a) Upon the execution of this
Agreement, the Subordination Agent shall establish and maintain in its name
(i) the Collection Account as an Eligible Deposit Account, bearing a
designation clearly indicating that the funds deposited therein are held in
trust for the benefit of the Trustees, the Certificateholders, the Primary
Liquidity Providers and the Policy Provider, (ii) as a sub-account in the
Collection Account, the Special Payments Account as an Eligible Deposit
Account, bearing a designation clearly indicating that the funds deposited
therein are held in trust for the benefit of the Trustees, the
Certificateholders, the Primary Liquidity Providers and the Policy Provider,
(iii) (x) a Class G-1 Policy Account as an Eligible Deposit Account bearing a
designation clearly indicating that the funds deposited therein are held in
trust for the benefit of the Class G-1 Certificateholders and (y) a Class G-2
Policy Account as an Eligible Deposit Account bearing a designation clearly
indicating that the funds deposited therein are held in trust for the benefit
of the Class G-2 Certificateholders and (iv) a Class G-1 Above-Cap Account and
a Class C-1 Above-Cap Account each bearing a designation clearly indicating
that the funds deposited therein are held in trust for the benefit of the
related Trustee and Certificateholders. The Subordination Agent shall
establish and maintain the Cash Collateral Accounts pursuant to and under the
circumstances set forth in Section 3.6(f) hereof. Each Cash Collateral Account
shall bear a designation clearly indicating that the funds deposited therein
are held in trust for the benefit of the related Trustee and
Certificateholders. Upon such establishment and maintenance under Section
3.6(f) hereof, the Cash Collateral Accounts shall, together with the
Collection Accounts, the Policy Accounts, and the Above-Cap Accounts
constitute the "Trust Accounts" hereunder. Without limiting the foregoing, all
monies credited to the Trust Accounts shall be, and shall remain, the property
of the relevant Trust(s).

                                     -31-
<PAGE>

          (b) Funds on deposit in the Trust Accounts shall be invested and
reinvested by the Subordination Agent in Eligible Investments selected by the
Subordination Agent if such investments are reasonably available and have
maturities no later than the earlier of (i) 90 days following the date of such
investment (provided that the Subordination Agent shall invest and reinvest
funds on deposit in the Above-Cap Accounts and Above-Cap Reserve Accounts in
the manner specified in Schedule 2.2(b) attached hereto) or (ii) the Business
Day immediately preceding the Regular Distribution Date or the date of the
related distribution pursuant to Section 2.4 hereof, as the case may be, next
following the date of such investment; provided further, however, that upon
the occurrence and during the continuation of a Triggering Event, the
Subordination Agent shall invest and reinvest such amounts in Eligible
Investments in accordance with the written instructions of the Controlling
Party. Unless otherwise expressly provided in this Agreement (including,
without limitation, with respect to Investment Earnings on amounts on deposit
in the Above-Cap Reserve Accounts and in the Above-Cap Accounts, in each case
pursuant to Section 3.6(f) hereof), any Investment Earnings shall be deposited
in the Collection Account when received by the Subordination Agent and shall
be applied by the Subordination Agent in the same manner as the other amounts
on deposit in the Collection Account are to be applied and any losses shall be
charged against the principal amount invested, in each case net of the
Subordination Agent's reasonable fees and expenses in making such investments.
The Subordination Agent shall not be liable for any loss resulting from any
investment, reinvestment or liquidation required to be made under this
Agreement other than by reason of its willful misconduct or gross negligence
or, with respect to the handling or transfer of funds, ordinary negligence.
Eligible Investments and any other investment required to be made hereunder
shall be held to their maturities except that any such investment may be sold
(without regard to its maturity) by the Subordination Agent without
instructions whenever such sale is necessary to make a distribution required
under this Agreement. Uninvested funds held hereunder shall not earn or accrue
interest.

          (c) The Subordination Agent shall possess all right, title and
interest in all funds on deposit from time to time in the Trust Accounts and
in all proceeds thereof (including all income thereon, except as otherwise
provided herein with respect to Investment Earnings). The Trust Accounts shall
be held in trust by the Subordination Agent under the sole dominion and
control of the Subordination Agent for the benefit of the Trustees, the
Certificateholders, the Liquidity Providers and the Policy Providers, as the
case may be. If, at any time, any of the Trust Accounts ceases to be an
Eligible Deposit Account, the Subordination Agent shall within 10 Business
Days (or such longer period, not to exceed 30 calendar days, to which each
Rating Agency may consent) establish a new Collection Account, Special
Payments Account, Policy Account, Cash Collateral Account or Above-Cap
Account, as the case may be, as an Eligible Deposit Account and shall transfer
any cash and/or any investments to such new Collection Account, Special
Payments Account, Policy Account, Cash Collateral Account or Above-Cap
Account, as the case may be. So long as the Subordination Agent is an Eligible
Institution, the Trust Accounts shall be maintained with it as Eligible
Deposit Accounts.

          Section 2.3. Deposits to the Collection Account and Special Payments
Account. (a) The Subordination Agent shall, upon receipt thereof, deposit in
the Collection Account all Scheduled Payments received by it (other than any
Scheduled Payment which by the express terms hereof is to be deposited to a
Policy Account or a Cash Collateral Account).

                                     -32-
<PAGE>

          (b) The Subordination Agent shall, on each date when one or more
Special Payments are made to the Subordination Agent as holder of the
Equipment Notes, deposit in the Special Payments Account the aggregate amount
of such Special Payments.

          Section 2.4. Distributions of Special Payments. (a) Notice of
Special Payment. Except as provided in Section 2.4(e), upon receipt by the
Subordination Agent, as registered holder of the Equipment Notes, of any
notice of a Special Payment (or, in the absence of any such notice, upon
receipt by the Subordination Agent of a Special Payment), the Subordination
Agent shall promptly give notice thereof to each Trustee, the Primary
Liquidity Providers and the Policy Provider. The Subordination Agent shall
promptly calculate the amount of the redemption or purchase of Equipment Notes
or the amount of any Overdue Scheduled Payment, as the case may be, comprising
such Special Payment under the applicable Indenture or Indentures and shall
promptly send to each Trustee and the Primary Liquidity Providers a Written
Notice of such amount and the amount allocable to each Trust. Such Written
Notice shall also set the distribution date for such Special Payment (a
"Special Distribution Date"), which shall be the Business Day which
immediately follows the later to occur of (x) the 15th day after the date of
such Written Notice or (y) the date the Subordination Agent has received or
expects to receive such Special Payment. Amounts on deposit in the Special
Payments Account shall be distributed in accordance with Sections 2.4(b) and
2.4(c) hereof, as applicable.

          (b) (i) Redemptions and Purchases of Equipment Notes. So long as no
Triggering Event shall have occurred (whether or not continuing), the
Subordination Agent shall make distributions pursuant to this Section 2.4(b)
of amounts on deposit in the Special Payments Account on account of the
redemption or purchase (including, without limitation, a purchase resulting
from the sale of the Equipment Notes permitted by Article IV hereof) of any of
the Equipment Notes issued pursuant to an Indenture on the Special
Distribution Date for such Special Payment in the following order of priority:

          first, such amount as shall be required to pay (A) all accrued and
     unpaid Liquidity Expenses and Policy Expenses then in arrears plus (B)
     the product of (x) the aggregate amount of all accrued and unpaid
     Liquidity Expenses and Policy Expenses not in arrears to such Special
     Distribution Date multiplied by (y) a fraction, the numerator of which is
     the aggregate outstanding principal amount of Equipment Notes (other than
     Series D Equipment Notes) being redeemed, purchased or prepaid on such
     Special Distribution Date and the denominator of which is the aggregate
     outstanding principal amount of all Equipment Notes (other than Series D
     Equipment Notes) (the "Section 2.4(b) Fraction") ("accrued amounts"),
     shall be distributed to the applicable Primary Liquidity Providers and
     Policy Provider first in satisfaction of any past due amounts then in
     satisfaction of the accrued amounts, in each case, pro rata on the basis
     of the amount of Liquidity Expenses and Policy Expenses, owed to each
     Primary Liquidity Provider and the Policy Provider;

          second, such amount as shall be required to pay (i)(A) all accrued
     and unpaid interest then in arrears on all Liquidity Obligations (at the
     rate provided in the applicable Primary Liquidity Facility, determined
     after giving effect to payments made by the Policy Provider to each
     Primary Liquidity Provider, if any, in respect of interest on drawings
     under the Primary Liquidity Facilities) plus (B) the aggregate amount of
     all accrued and unpaid interest on all Liquidity Obligations not in
     arrears to such Special Distribution

                                     -33-
<PAGE>

     Date (at the rate provided in the applicable Primary Liquidity Facility
     and determined after giving effect to payments made by the Policy
     Provider to each Primary Liquidity Provider, if any, in respect of
     interest on Drawings under the Primary Liquidity Facilities), (ii) if
     either the Class G-1 or Class G-2 Primary Liquidity Provider has
     defaulted in its obligation to make a payment on any Interest Drawing in
     respect of the Class G-1 or Class G-2 Certificates, as the case may be,
     (A) the aggregate amount of interest accrued on the portion of any Policy
     Drawing made to cover the shortfall attributable to such default by the
     Primary Liquidity Provider at the rate provided in the "except" clause of
     clause (ii) of the definition of "Policy Provider Obligations" which are
     then in arrears plus (B) the aggregate amount of all accrued and unpaid
     interest on such Policy Drawings not in arrears to such Special
     Distribution Date and (iii) if the Policy Provider has elected to pay to
     each Primary Liquidity Provider all outstanding drawings and interest
     owing to such Primary Liquidity Provider under its Primary Liquidity
     Facility pursuant to subsection 2.6(c) hereof, the amount of such payment
     made to the Primary Liquidity Providers attributable to such interest
     accrued on such drawings, shall be distributed to the Primary Liquidity
     Providers and the Policy Provider pro rata (without duplication), on the
     basis of such Liquidity Obligations owed to each Primary Liquidity
     Provider and the amount of such unreimbursed Policy Provider Obligations
     payable to the Policy Provider under this clause "second";

          third, such amount as shall be required (A) if any Primary Cash
     Collateral Account had been previously funded as provided in Section
     3.6(f), to fund such Cash Collateral Account up to its Required Amount
     shall be deposited in such Primary Cash Collateral Account, (B) if any
     Primary Liquidity Facility shall become a Downgraded Facility or a
     Non-Extended Facility at a time when unreimbursed Interest Drawings under
     such Primary Liquidity Facility have reduced the Maximum Available
     Commitment thereunder to zero, to deposit into the related Primary Cash
     Collateral Account an amount equal to such Primary Cash Collateral
     Account's Required Amount shall be deposited in such Primary Cash
     Collateral Account, (C) if with respect to any particular Primary
     Liquidity Facility neither subclause (A) nor subclause (B) of this clause
     "third" is applicable, to pay or reimburse the Primary Liquidity Provider
     in respect of such Primary Liquidity Facility in an amount equal to the
     amount of any unreimbursed Interest Drawings under such Primary Liquidity
     Facility shall be distributed to such Primary Liquidity Provider (other
     than amounts payable pursuant to clauses first or second of this Section
     2.4(b) and as determined after giving effect to payments made by the
     Policy Provider to such Primary Liquidity Provider in respect of
     principal of drawings under its Primary Liquidity Facility), pro rata
     with any amount distributable pursuant to subclause (D) of this clause
     "third" on the basis of the amount of all such unreimbursed Interest
     Drawings and unreimbursed Policy Provider Obligations payable to the
     Policy Provider under subclause (D) of this clause "third" and (D) if the
     Policy Provider has elected to pay to the Primary Liquidity Providers all
     outstanding drawings and interest owing to each such Primary Liquidity
     Provider under its Primary Liquidity Facility pursuant to subsection
     2.6(c) hereof, to reimburse the Policy Provider for the principal amount
     of such payment made to the Primary Liquidity Providers, but only after
     giving effect to the application of amounts, if any, under subclause (A)
     or (B) of this clause "third" and if any amount shall be distributable
     under subclause (C) of this clause "third", pro rata with any amount
     distributable on the basis of the amounts distributable pursuant to such
     subclause

                                     -34-
<PAGE>

     (C) on the basis of the amounts of all such unreimbursed Interest
     Drawings and the amount of such unreimbursed Policy Provider Obligations
     payable to the Policy Provider under this clause "third";

          fourth, if, with respect to any particular Primary Liquidity
     Facility, any amounts are to be distributed pursuant to either subclause
     (A) or (B) of clause "third" above, then the Primary Liquidity Provider
     with respect to such Primary Liquidity Facility shall be paid the excess
     of (x) the aggregate outstanding amount of unreimbursed Advances (whether
     or not then due) under such Primary Liquidity Facility over (y) the
     Required Amount for the relevant Class, pro rata on the basis of such
     amounts in respect of each Primary Liquidity Provider;

          fifth, if any Above-Cap Reserve Account had been previously funded
     as provided in Section 3.6(f), such amount as shall be required to fund
     such Above-Cap Reserve Account up to an amount equal to the applicable
     Termination Amount (as recalculated on such Distribution Date) less any
     amount then on deposit in the related Above-Cap Account shall be
     deposited in such Above-Cap Reserve Account;

          sixth, such amount as shall be required to pay in full Expected
     Distributions to the holders of Class G-1 Certificates and Class G-2
     Certificates on such Special Distribution Date shall be distributed to
     the Class G-1 Trustee and Class G-2 Trustee pro rata on the basis of such
     amounts in respect of each such Class of Certificates;

          seventh, such amount as shall be required to pay Policy Provider
     Obligations then due (other than amounts payable pursuant to the
     preceding clauses of this Section 2.4(b)(i) and other than any Excess
     Reimbursement Obligations) and any amounts due under the Policy Fee
     Letter;

          eighth, such amount as shall be required to pay in full Expected
     Distributions to the holders of Class C-1 Certificates and Class C-2
     Certificates on such Special Distribution Date shall be distributed to
     the Class C-1 Trustee and Class C-2 Trustee, pro rata, on the basis of
     such amounts in respect of each such Class of Certificates;

          ninth, such amount as shall be required to pay Excess Reimbursement
     Obligations to the Policy Provider;

          tenth, such amount as shall be required to pay in full Expected
     Distributions to the holders of Class D Certificates, if any, on such
     Special Distribution Date shall be distributed to the Class D Trustee,
     provided, however, that if all of the Class D Certificates are owned by
     one or more Persons that are not Affiliates of Northwest and the sale or
     sales of such Certificates to such Persons occurred prior to the
     occurrence of an Indenture Default under any Indenture, the Expected
     Distributions on the Class D Certificates shall be distributed
     immediately prior to the payment in clause "ninth" above;

          eleventh, such amount as shall be required, if any Above-Cap Reserve
     Account had been previously funded as provided in Section 3.6(f), to fund
     such Above-Cap Cash Reserve Account up to an amount equal to the
     applicable Termination Amount (as

                                     -35-
<PAGE>

     recalculated on such Distribution Date) shall be deposited in such
     Above-Cap Reserve Account; and

          twelfth, the balance, if any, of such Special Payment shall be
     transferred to the Collection Account for distribution in accordance with
     Section 3.2 hereof.

For the purpose of this Section 2.4(b)(i), clause (x) of the definition of
"Expected Distributions" shall be deemed to read as follows: "(x) accrued, due
and unpaid interest on such Certificates excluding interest, if any, payable
with respect to the Deposits related to such Trust", together with (without
duplication) accrued and unpaid interest in respect of a portion of such
Certificates equal to the outstanding principal amount of Equipment Notes
being redeemed, purchased or prepaid (immediately prior to such redemption,
purchase or prepayment).

          (ii) Upon the occurrence of a Triggering Event (whether or not
     continuing), the Subordination Agent shall make distributions pursuant to
     this Section 2.4(b) of amounts on deposit in the Special Payments Account
     on account of the redemption or purchase of all of the Equipment Notes
     issued pursuant to an Indenture on the Special Distribution Date for such
     Special Payment in accordance with Section 3.3 hereof.

          (c) Other Special Payments. Except as provided in clause (e) below,
any amounts on deposit in the Special Payments Account other than in respect
of amounts to be distributed pursuant to Section 2.4(b) shall be distributed
on the Special Distribution Date therefor in accordance with Article III
hereof.

          (d) Investment of Amounts in Special Payments Account. Any amounts
on deposit in the Special Payments Account prior to the distribution thereof
pursuant to Section 2.4(b) or (c) shall be invested in accordance with Section
2.2(b). Investment Earnings on such investments shall be distributed in
accordance with Section 2.4(b) or (c), as the case may be.

          (e) Certain Payments. Except for amounts constituting Liquidity
Obligations which shall be distributed as provided in Sections 2.4(b), 3.2 or
3.3 (as the case may be), the Subordination Agent will distribute promptly
upon receipt thereof (i) any indemnity payment received by it from the Owner
Participant, the Owner Trustee or Northwest in respect of any Trustee, any
Primary Liquidity Provider, the Policy Provider, any Paying Agent, any
Depositary or any Escrow Agent (collectively, the "Payees") and (ii) any
compensation (including, without limitation, any fees payable to any Liquidity
Provider under the Fee Letters or to the Policy Provider under the Policy
Letter) received by it from the Owner Participant, the Owner Trustee or
Northwest under any Operative Agreement in respect of any Payee, directly to
the Payee entitled thereto.

          Section 2.5. Designated Representatives. (a) With the delivery of
this Agreement, the Subordination Agent shall furnish to each Liquidity
Provider, the Policy Provider and each Trustee, and from time to time
thereafter may furnish to each Liquidity Provider, the Policy Provider and
each Trustee, at the Subordination Agent's discretion, or upon any Liquidity
Provider's, the Policy Provider's or Trustee's request (which request shall
not be made more than one time in any 12-month period), a certificate (a
"Subordination Agent Incumbency Certificate") of a Responsible Officer of the
Subordination Agent certifying as to the

                                     -36-
<PAGE>

incumbency and specimen signatures of the officers of the Subordination Agent
and the attorney-in-fact and agents of the Subordination Agent (the
"Subordination Agent Representatives") authorized to give Written Notices on
behalf of the Subordination Agent hereunder. Until each Liquidity Provider,
Policy Provider and Trustee receives a subsequent Subordination Agent
Incumbency Certificate, it shall be entitled to rely on the last Subordination
Agent Incumbency Certificate delivered to it hereunder.

          (b) With the delivery of this Agreement, each Trustee shall furnish
to the Subordination Agent, and from time to time thereafter may furnish to
the Subordination Agent, at such Trustee's discretion, or upon the
Subordination Agent's request (which request shall not be made more than one
time in any 12-month period), a certificate (a "Trustee Incumbency
Certificate") of a Responsible Officer of such Trustee certifying as to the
incumbency and specimen signatures of the officers of such Trustee and the
attorney-in-fact and agents of such Trustee (the "Trustee Representatives")
authorized to give Written Notices on behalf of such Trustee hereunder. Until
the Subordination Agent receives a subsequent Trustee Incumbency Certificate,
it shall be entitled to rely on the last Trustee Incumbency Certificate
delivered to it hereunder.

          (c) With the delivery of this Agreement, each Liquidity Provider
shall furnish to the Subordination Agent, and from time to time thereafter may
furnish to the Subordination Agent, at such Liquidity Provider's discretion,
or upon the Subordination Agent's request (which request shall not be made
more than one time in any 12-month period), a certificate (each a "LP
Incumbency Certificate") of any authorized signatory of such Liquidity
Provider certifying as to the incumbency and specimen signatures of any
officer, attorney-in-fact, agent or other designated representative of such
Liquidity Provider (in each case, the "LP Representatives" and, together with
the Trustee Representatives, the "Designated Representatives") authorized to
give Written Notices on behalf of such Liquidity Provider hereunder. Until the
Subordination Agent receives a subsequent LP Incumbency Certificate, it shall
be entitled to rely on the last LP Incumbency Certificate delivered to it
hereunder.

          (d) With the delivery of this Agreement, each Policy Provider shall
furnish to the Subordination Agent, and from time to time thereafter may
furnish to the Subordination Agent, at such Policy Provider's discretion, or
upon the Subordination Agent's request (which request shall not be made more
than one time in any 12-month period), a certificate (each a "Policy Provider
Incumbency Certificate") of any authorized signatory of such the Policy
Provider certifying as to the incumbency and specimen signatures of any
officer, attorney-in-fact, agent or other designated representative of such
Policy Provider (in each case, the "Policy Provider Representatives" and
together with the Trustee Representatives, the "Designated Representatives")
authorized to give Written Notices on behalf of such Policy Provider
hereunder. Until the Subordination Agent receives a subsequent Policy Provider
Incumbency Certificate, it shall be entitled to rely on the last Policy
Provider Incumbency Certificate delivered to it hereunder.

          Section 2.6. Controlling Party. (a) The Trustees, the Liquidity
Providers and the Policy Provider hereby agree that, with respect to any
Indenture at any given time, the Loan Trustee thereunder will be directed (i)
in taking, or refraining from taking, any action with respect to such
Indenture or the Equipment Notes issued thereunder, so long as no Indenture

                                     -37-
<PAGE>

Default has occurred and is continuing thereunder, by the holders of at least
a majority of the outstanding principal amount of such Equipment Notes
(provided that, for so long as the Subordination Agent is the registered
holder of the Equipment Notes, the Subordination Agent shall act with respect
to this clause (i) in accordance with the directions of the Trustees of Trusts
for which the related Trust Properties include, in the aggregate, such a
majority of outstanding principal amount of Equipment Notes, except so long as
the Final Distributions on the Class G-1 and Class G-2 Certificates have not
been made or any Policy Provider Obligations remain outstanding and no Policy
Provider Default shall have occurred and be continuing, the Subordination
Agent shall request directions from the Policy Provider rather than the Class
G-1 Trustee with respect to the Series G-1 Equipment Notes or the Class G-2
Trustee with respect to the Series G-2 Equipment Notes), and (ii) after the
occurrence and during the continuance of an Indenture Default thereunder
(which, in the case of an Indenture pertaining to a Leased Aircraft, has not
been cured by the applicable Owner Trustee or the applicable Owner
Participant, if applicable, pursuant to Section 4.03 of such Indenture), in
taking, or refraining from taking, any action with respect to such Indenture
or such Equipment Notes, including exercising remedies thereunder (including
accelerating the Equipment Notes issued thereunder or foreclosing the Lien on
the Aircraft securing such Equipment Notes), by the Subordination Agent as
directed by the Controlling Party.

          (b) Subject to subparagraph (c) below, the "Controlling Party" with
respect to any Indenture shall be: (x)(i) the Policy Provider until payment of
Final Distributions to the holders of Class G-1 and Class G-2 Certificates and
no obligations owing to the Policy Provider hereunder remain outstanding, or
(ii) if a Policy Provider Default has occurred and is continuing, (A) the
Class G-1 or Class G-2 Trustee, whichever represents the Class with the larger
Pool Balance of Certificates outstanding at the time that the Indenture
Default occurs, and (B) upon payment of Final Distributions to the holders of
such larger Class, the other of the Class G-1 Trustee or Class G-2 Trustee;
(y) upon payment of Final Distributions to the holders of Class G-1
Certificates and Class G-2 Certificates and, unless a Policy Provider Default
has occurred and is continuing, of any obligations owing to the Policy
Provider hereunder, the Class C-1 or Class C-2 Trustee, whichever represents
the Class with the larger Pool Balance of Certificates outstanding at the time
that the Indenture Default occurs, until payment of Final Distributions to the
holders of such larger Class, and thereafter the other of the Class C-1
Trustee or Class C-2 Trustee and (z) upon payment of Final Distributions to
the holders of the Class G-1, Class G-2, Class C-1 and Class C-2 Certificates,
and unless a Policy Provider Default has occurred and is continuing, of any
obligations owing to the Policy Provider hereunder, the Class D Trustee, if
there be one. For purposes of giving effect to the foregoing, the Trustees
(other than the Controlling Party) irrevocably agree (and the
Certificateholders (other than the Certificateholders represented by the
Controlling Party) shall be deemed to agree by virtue of their purchase of
Certificates) that the Subordination Agent, as record holder of the Equipment
Notes, shall exercise its voting rights in respect of the Equipment Notes as
directed by the Controlling Party and any vote so exercised shall be binding
upon the Trustees and all Certificateholders.

          The Subordination Agent shall give Written Notice to all of the
other parties to this Agreement promptly upon a change in the identity of the
Controlling Party. Each of the parties hereto agrees that it shall not
exercise any of the rights of the Controlling Party at such time as it is not
the Controlling Party hereunder; provided, however, that nothing herein
contained shall prevent or prohibit any Non-Controlling Party from exercising
such rights as

                                     -38-
<PAGE>

shall be specifically granted to such Non-Controlling Party hereunder and
under the other Operative Agreements.

          (c) Notwithstanding the foregoing, at any time after 18 months from
the earliest to occur of (i) the date on which the entire Maximum Available
Commitment under any Primary Liquidity Facility shall have been drawn (for any
reason other than a Downgrade Drawing or a Non-Extension Drawing) and any
amount remains unreimbursed, (ii) the date on which the entire amount of any
Downgrade Drawing or Non-Extension Drawing has been withdrawn from a Primary
Cash Collateral Account to pay interest on the relevant Class of Certificates
or, if earlier, the date on which the entire amount of any Downgrade Drawing
or Non-Extension Drawing is converted into a Final Drawing, and which in each
case remains unreimbursed and (iii) the date on which all Equipment Notes
shall have been Accelerated (provided that with respect to the period prior to
the Delivery Period Expiry Date, such Equipment Notes have an aggregate
outstanding principal balance in excess of $300,000,000), the Primary
Liquidity Provider with the highest outstanding amount of unreimbursed
Liquidity Obligations (so long as such Primary Liquidity Provider has not
defaulted in its obligation to make any advance under its Primary Liquidity
Facility, the "Eligible Provider") shall have the right to elect, by Written
Notice to the Subordination Agent, the Policy Provider and each of the
Trustees, to become the Controlling Party hereunder with respect to any
Indenture at any time from and including the last day of such 18-month period,
provided, further, that if, within 15 Business Days after its receipt of any
such Written Notice from such Primary Liquidity Provider (which notice may be
given on or after the fifteenth Business Day prior to the end of such 18-month
period) the Policy Provider pays to each Primary Liquidity Provider all
outstanding drawings owing to each Primary Liquidity Provider in respect of
its Primary Liquidity Facility, and interest accrued thereon to such date, the
Policy Provider shall remain the Controlling Party so long as no Policy
Provider Default has occurred and is continuing and the Policy Provider
thereafter pays to the Primary Liquidity Providers with respect to the Class
G-1 and the Class G-2 Certificates all subsequent Drawings, together with
accrued interest thereon, under the related Primary Liquidity Facilities as
and when such obligations become due (which payments shall be applied by the
Primary Liquidity Provider as repayments of such Drawings and accrued interest
thereon), provided, further, however, that upon any such Policy Provider
Default the Eligible Provider, if it so elects and if Liquidity Obligations
owing to it remain outstanding, or if it does not so elect or if no Liquidity
Obligations owing to it remain outstanding, the Person determined to be the
Controlling Party in accordance with Section 2.6(b) shall become the
Controlling Party.

          (d) The exercise of remedies by the Controlling Party under this
Agreement shall be expressly limited by Section 4.1(a)(ii) hereof.

          (e) The Controlling Party shall not be entitled to require or
obligate any Non-Controlling Party to provide funds necessary to exercise any
right or remedy hereunder.

                                     -39-
<PAGE>

                                 ARTICLE III

                   RECEIPT, DISTRIBUTION AND APPLICATION OF
                               AMOUNTS RECEIVED

          Section 3.1. Written Notice of Distribution. (a) No later than 3:00
P.M. (New York City time) on the Business Day immediately preceding each
Regular Distribution Date (or Special Distribution Date for purposes of
Section 2.4(b) hereof, as the case may be), each of the following Persons
shall deliver to the Subordination Agent a Written Notice setting forth the
following information as at the close of business on such Business Day:

          (i) With respect to the Class G-1 and Class G-2 Certificates, the
     Class G-1 and Class G-2 Trustees, respectively, shall separately set
     forth the amounts to be paid in accordance with clause "sixth" of Section
     2.4(b) or Section 3.2, as the case may be, hereof;

          (ii) With respect to the Class C-1 and Class C-2 Certificates, the
     Class C-1 and Class C-2 Trustees, respectively, shall separately set
     forth the amounts to be paid in accordance with clause "eighth" of
     Section 2.4(b) or Section 3.2, as the case may be, hereof;

          (iii) With respect to the Class D Certificates, the Class D Trustee
     shall separately set forth the amounts to be paid in accordance with
     clause "tenth" of Section 2.4(b) or Section 3.2, as the case may be,
     hereof;

          (iv) With respect to each Primary Liquidity Facility, the Primary
     Liquidity Provider thereunder shall separately set forth the amounts to
     be paid in accordance with clauses "first", "second", "third" and
     "fourth" of Section 2.4(b) or Section 3.2, as the case may be, hereof;

          (v) The Policy Provider shall set forth the amounts to be paid to it
     in accordance with clauses "first", "second" and "third", of Section
     2.4(b) or Section 3.2, as the case may be, hereof;

          (vi) Each Trustee shall set forth the amounts to be paid in
     accordance with clause "eleventh" of Section 3.2 hereof.

The notices required under this Section 3.1(a) shall be provided to the
Subordination Agent by the parties referenced therein or by any one of them
pursuant to an agreement between the parties referred to therein, and may
state that, unless there has been a prepayment of the Certificates, such
notice is to remain in effect until any substitute notice or amendment shall
be given to the Subordination Agent by the party providing such notice.

          (b) Following the occurrence of a Triggering Event, the
Subordination Agent shall request the following information from the following
Persons, and each of the following Persons shall, upon the request of the
Subordination Agent, deliver a Written Notice to the Subordination Agent
setting forth for such Person the following information:

                                     -40-
<PAGE>

          (i) With respect to the Class G-1 and G-2 Certificates, the Class
     G-1 and Class G-2 Trustees, respectively, shall separately set forth the
     amounts to be paid in accordance with clauses "first" (relating to
     reimbursement of payments made by such Trustee or the Class G-1 and Class
     G-2 Certificateholders), and "seventh" and "eighth" of Section 3.3
     hereof;

          (ii) With respect to the Class C-1 and Class C-2 Certificates, the
     Class C-1 and Class C-2 Trustees, respectively, shall separately set
     forth the amounts to be paid in accordance with clauses "first" (relating
     to reimbursement of payments made by such Trustee or the Class C-1
     Certificateholders or Class C-2 Certificateholders), "seventh" and
     "tenth" of Section 3.3 hereof;

          (iii) With respect to the Class D Certificates, the Class D Trustee
     shall separately set forth the amounts to be paid in accordance with
     clauses "first" (relating to reimbursement of payments made by such
     Trustee or the Class D Certificateholders), "seventh" and "twelfth" of
     Section 3.3 hereof;

          (iv) With respect to each Primary Liquidity Facility, the Primary
     Liquidity Provider thereunder shall separately set forth the amounts to
     be paid in accordance with clauses "first", "second," "third", "fourth"
     and "fifth" of Section 3.3 hereof;

          (v) The Policy Provider shall separately set forth amounts to be
     paid to it in accordance with clauses "first", "second", "third",
     "fourth", "ninth" and "eleventh" of Section 3.3 hereof; and

          (vi) Each Trustee shall set forth the amounts to be paid in
     accordance with clause "seventh" of Section 3.3 hereof.

          (c) At such time as a Trustee, a Primary Liquidity Provider or the
Policy Provider shall have received all amounts owing to it (and, in the case
of a Trustee, the Certificateholders for which it is acting) pursuant to
Sections 2.4, 3.2 or 3.3 hereof, as applicable, and, in the case of a Primary
Liquidity Provider or the Policy Provider, its commitment under the related
Primary Liquidity Facility or the Policy shall have terminated or expired,
such Person shall, by a Written Notice, so inform the Subordination Agent and
each other party to this Agreement.

          (d) As provided in Section 6.5 hereof, the Subordination Agent shall
be fully protected in relying on any of the information set forth in a Written
Notice provided by any Trustee, any Primary Liquidity Provider or the Policy
Provider pursuant to paragraphs (a) through (c) above and shall have no
independent obligation to verify, calculate or recalculate any amount set
forth in any Written Notice delivered in accordance with such paragraphs.

          (e) Any Written Notice delivered by a Trustee, a Primary Liquidity
Provider or the Policy Provider, as applicable, pursuant to Sections 3.1(a),
3.1(b) or 3.1(c) hereof, if made prior to 10:00 A.M. (New York City time) on
any Business Day shall be effective on the date delivered (or, if delivered
later on a Business Day or if delivered on a day which is not a Business Day,
shall be effective as of the next Business Day). Subject to the terms of this
Agreement, the Subordination Agent shall as promptly as practicable comply
with any such instructions; provided, however, that any transfer of funds
pursuant to any instruction received

                                     -41-
<PAGE>

after 10:00 A.M. (New York City time) on any Business Day may be made on the
next succeeding Business Day.

          (f) In the event the Subordination Agent shall not receive from any
Person any information set forth in paragraphs (a) or (b) above which is
required to enable the Subordination Agent to make a distribution to such
Person pursuant to Sections 2.4, 3.2 or 3.3 hereof, the Subordination Agent
shall request such information in writing and, failing to receive any such
information, the Subordination Agent shall, after written notice to such
person, not make such distribution(s) to such Person. In such event, the
Subordination Agent shall make distributions pursuant to clauses "first"
through "twelfth" of Section 2.4, clauses "first" through "thirteenth" of
Section 3.2 and clauses "first" through "fifteenth" of Section 3.3 to the
extent it shall have sufficient information to enable it to make such
distributions, and shall continue to hold any funds remaining, after making
such distributions, until the Subordination Agent shall receive all necessary
information to enable it to distribute any funds so withheld.

          (g) On such dates (but not more frequently than monthly) as any
Primary Liquidity Provider, the Policy Provider or any Trustee shall request,
but in any event automatically at the end of each calendar quarter, the
Subordination Agent shall send to such party a written statement reflecting
all amounts on deposit with the Subordination Agent pursuant to Section 3.1(f)
hereof.

          Section 3.2. Distribution of Amounts on Deposit in the Collection
Account. Except as otherwise provided in Sections 2.4, 3.1(f), 3.3, 3.4 and
3.6(b), amounts on deposit in the Collection Account (or, in the case of any
amount described in Section 2.4(c), on deposit in the Special Payments
Account) shall be promptly distributed on each Regular Distribution Date (or,
in the case of any amount described in Section 2.4(c), on the Special
Distribution Date therefor) in the following order of priority and in
accordance with the information provided to the Subordination Agent pursuant
to Section 3.1(a) hereof:

          first, such amount as shall be required to pay (i) all accrued and
     unpaid Liquidity Expenses owed to each Primary Liquidity Provider and
     (ii) all accrued and unpaid Policy Expenses owed to the Policy Provider
     shall be distributed to the Primary Liquidity Providers and the Policy
     Provider pro rata on the basis of the amount of Liquidity Expenses owed
     to the Primary Liquidity Provider and Policy Expenses owed to the Policy
     Provider;

          second, such amount as shall be required to pay in full (i) the
     aggregate amount of interest accrued on all Liquidity Obligations (at the
     rate provided in the applicable Primary Liquidity Facility determined
     after giving effect to payments made by the Policy Provider to each
     Primary Liquidity Provider, if any, in respect of interest on drawings
     under the Primary Liquidity Facilities), (ii) if either the Class G-1 or
     Class G-2 Primary Liquidity Provider has defaulted in its obligation to
     make a payment on any Interest Drawing in respect of the Class G-1 or
     Class G-2 Certificates, as the case may be, the aggregate amount of
     interest accrued on the portion of any Policy Drawing made to cover the
     shortfall attributable to such default by such Primary Liquidity Provider
     at the rate provided in the "except" clause (ii) of the definition of
     "Policy Provider Obligations" and (iii) if the Policy Provider has
     elected to pay to each Primary Liquidity Provider all

                                     -42-
<PAGE>

     outstanding drawings and interest owing to such Primary Liquidity
     Provider under its Primary Liquidity Facility pursuant to subsection
     2.6(c) hereof, the amount of such payment made to the Primary Liquidity
     Providers attributable to such interest accrued on such drawings, shall
     be distributed to the Primary Liquidity Providers and the Policy Provider
     pro rata (without duplication) on the basis of the amounts owing to each;

          third, such amount as shall be required (A) if any Primary Cash
     Collateral Account relating to a Primary Liquidity Facility had been
     previously funded as provided in Section 3.6(f), to fund such Primary
     Cash Collateral Account up to its Required Amount shall be deposited in
     such Account, (B) if any Primary Liquidity Facility shall become a
     Downgraded Facility or a Non-Extended Facility at a time when
     unreimbursed Interest Drawings under such Primary Liquidity Facility have
     reduced the Maximum Available Commitment thereunder to zero, to deposit
     into the related Primary Cash Collateral Account an amount equal to such
     Primary Cash Collateral Account's Required Amount shall be deposited in
     such Cash Collateral Account, (C) if, with respect to any particular
     Primary Liquidity Facility, neither subclause (A) nor subclause (B) of
     this clause "third" is applicable, to pay or reimburse the Primary
     Liquidity Provider in respect of such Primary Liquidity Facility in an
     amount equal to the amount of all Liquidity Obligations then due under
     such Primary Liquidity Facility (other than amounts payable pursuant to
     clause "first" or "second" of this Section 3.2 and as determined after
     giving effect to payments made by the Policy Provider to such Primary
     Liquidity Provider in respect of principal of drawings under its Primary
     Liquidity Facility), pro rata with any amount distributable pursuant to
     subclause (D) of this clause "third" on the basis of the amount of all
     such unreimbursed Interest Drawing and unreimbursed Policy Provider
     Obligations payable to the Policy Provider under subclause (D) of this
     clause "third" and (D) if the Policy Provider has elected to pay to the
     Primary Liquidity Provider all outstanding drawings and interest owing to
     the Primary Liquidity Provider under the applicable Primary Liquidity
     Facility pursuant to subsection 2.6(c) hereof, to reimburse the Policy
     Provider for the principal amount of such payment made to the Primary
     Liquidity Provider, but only after giving effect to the application of
     amounts, if any, under subclause (A) or (B) of this clause "third" and if
     any amount shall be distributable under subclause (C) of this clause
     "third", pro rata (without duplication) with any amount distributable
     pursuant to such subclause (C), on the basis of the amounts of all such
     unreimbursed Interest Drawings and the amount of such unreimbursed Policy
     Provider Obligations payable to the Policy Provider under this clause
     "third";

          fourth, if, with respect to any particular Primary Liquidity
     Facility, any amounts are to be distributed pursuant to either subclause
     (A) or (B) of clause "third" above, then the Primary Liquidity Provider
     with respect to such Primary Liquidity Facility shall be paid the excess
     of (x) the aggregate outstanding amount of unreimbursed Advances (whether
     or not then due) under such Primary Liquidity Facility over (y) the
     Required Amount for the relevant Class, pro rata on the basis of such
     amounts in respect of each Primary Liquidity Provider;

          fifth, if any Above-Cap Reserve Account had been previously funded
     as provided in Section 3.6(f), such amount as shall be required to fund
     such Above-Cap Reserve Account up to an amount equal to the applicable
     Termination Amount (as recalculated on

                                     -43-
<PAGE>

     such Distribution Date) less any amount then on deposit in the related
     Above-Cap Account shall be deposited in such Above-Cap Reserve Account;

          sixth, such amount as shall be required to pay in full Expected
     Distributions to the holders of Class G-1 and Class G-2 Certificates on
     such Distribution Date shall be distributed to the Class G-1 and Class
     G-2 Trustees, pro rata on the basis of such amounts in respect of each
     such Class of Certificates;

          seventh, such amount as shall be required to pay the Policy Provider
     all Policy Provider Obligations then due (other than amounts payable
     pursuant to the preceding clauses of this Section 3.2 and other than
     Excess Reimbursement Obligations) and any amounts due under the Policy
     Fee Letter;

          eighth, such amount as shall be required to pay in full Expected
     Distributions to the holders of the Class C-1 and Class C-2 Certificates
     on such Distribution Date shall be distributed to the Class C-1 and Class
     C-2 Trustees, pro rata on the basis of such amounts in respect of each
     such Class of Certificates;

          ninth, such amount as shall be required to pay in full any Excess
     Reimbursement Obligations shall be distributed to the Policy Provider;

          tenth, such amount as shall be required to pay in full Expected
     Distributions to the holders of the Class D Certificates on such
     Distribution Date shall be distributed to the Class D Trustee, provided,
     however, that if all of the Class D Certificates are owned by one or more
     Persons that are not Affiliates of Northwest and the sale or sales of
     such Certificates to such Persons occurred prior to the occurrence of an
     Indenture Default under any Indenture, the Expected Distributions on the
     Class D Certificates shall be distributed immediately prior to the
     payment in clause "ninth" above;

          eleventh, such amount as shall be required to pay in full the
     aggregate unpaid amount of fees and expenses payable as of such
     Distribution Date to the Subordination Agent and each Trustee pursuant to
     the terms of this Agreement and the Trust Agreements, as the case may be,
     shall be distributed to the Subordination Agent and such Trustee;

          twelfth, such amount as shall be required, if any Above-Cap Reserve
     Account had been previously funded as provided in Section 3.6(f), to fund
     such Above-Cap Reserve Account up to an amount equal to the applicable
     Termination Amount (as recalculated on such Distribution Date) shall be
     deposited in such Above-Cap Reserve Account; and

          thirteenth, the balance, if any, of any such payment remaining
     thereafter shall be held in the Collection Account for later distribution
     in accordance with this Article III (including the priorities set forth
     therein).

          Section 3.3. Distribution of Amounts on Deposit Following a
Triggering Event. (a) Except as otherwise provided in Sections 3.1(f) and
3.6(b) hereof, upon the occurrence of a Triggering Event and at all times
thereafter, all funds in the Collection Account or the Special

                                     -44-
<PAGE>

Payments Account shall be promptly distributed by the Subordination Agent in
the following order of priority:

          first, such amount as shall be required to reimburse (i) the
     Subordination Agent for any out-of-pocket costs and expenses actually
     incurred by it (to the extent not previously reimbursed) in the
     protection of, or the realization of the value of, the Equipment Notes or
     any Collateral or Trust Indenture Estate (as defined in the relevant
     Indenture), shall be applied by the Subordination Agent in reimbursement
     of such costs and expenses, (ii) each Trustee for any amounts of the
     nature described in clause (i) above actually incurred by it under the
     applicable Trust Agreement (to the extent not previously reimbursed),
     shall be distributed to such Trustee, (iii) the Policy Provider for any
     amounts of the nature described in clause (i) above actually incurred by
     it (to the extent not previously reimbursed), shall be distributed to the
     Policy Provider and (iv) any Primary Liquidity Provider, Policy Provider
     or Certificateholder for payments, if any, made by it to the
     Subordination Agent or any Trustee in respect of amounts described in
     clause (i) above, shall be distributed to such Primary Liquidity
     Provider, Policy Provider or to the applicable Trustee for the account of
     such Certificateholder, in each such case, pro rata on the basis of all
     amounts described in clauses (i) through (iv) above;

          second, (i) such amount as shall be required to pay all accrued and
     unpaid Liquidity Expenses and (ii) all accrued and unpaid Policy Expenses
     shall be distributed to each Primary Liquidity Provider and the Policy
     Provider pro rata on the basis of the amount of Primary Liquidity
     Expenses and Policy Expenses owed to each Primary Liquidity Provider and
     the Policy Provider;

          third, such amount as shall be required to pay (i) accrued and
     unpaid interest on the Liquidity Obligations (at the rate provided in the
     applicable Primary Liquidity Facility determined after giving effect to
     payments made by the Policy Provider to each Primary Liquidity Provider,
     if any, in respect of interest on drawings under the Primary Liquidity
     Facilities) as provided in the Primary Liquidity Facilities shall be
     distributed to each Primary Liquidity Provider pro rata on the basis of
     the amount of such accrued and unpaid interest owed to each Primary
     Liquidity Provider, (ii) if either the Class G-1 or Class G-2 Primary
     Liquidity Provider has defaulted in its obligation to make a payment on
     any Interest Drawing in respect of the Class G-1 or Class G-2
     Certificates, as the case may be, the aggregate amount of interest
     accrued on the portion of any Policy Drawing made to cover the shortfall
     attributable to such default by such Primary Liquidity Provider at the
     rate provided in the "except" clause (ii) of the definition of "Policy
     Provider Obligations" and (iii) if the Policy Provider has elected to pay
     to each Primary Liquidity Provider all outstanding drawings and interest
     owing to such Primary Liquidity Provider under its Primary Liquidity
     Facility pursuant to subsection 2.6(c) hereof, the amount of such payment
     made to the Primary Liquidity Providers attributable to such interest
     accrued on such drawings, shall be distributed to the Primary Liquidity
     Providers and the Policy Provider pro rata (without duplication) on the
     basis of the amounts owing to each;

          fourth, such amount as shall be required (A) if any Primary Cash
     Collateral Account relating to a Primary Liquidity Facility had been
     previously funded as provided

                                     -45-
<PAGE>

     in Section 3.6(f), unless (i) a Performing Note Deficiency exists and a
     Liquidity Event of Default shall have occurred and be continuing with
     respect to the relevant Primary Liquidity Facility or (ii) a Final
     Drawing shall have occurred with respect to such Primary Liquidity
     Facility, to fund such Primary Cash Collateral Account up to its Required
     Amount (less the amount of any repayments of Interest Drawings under such
     Primary Liquidity Facility while subclause (A)(i) above is applicable)
     shall be deposited in such Primary Cash Collateral Account, (B) if any
     Primary Liquidity Facility shall become a Downgraded Facility or a
     Non-Extended Facility at a time when unreimbursed Interest Drawings under
     such Primary Liquidity Facility have reduced the Maximum Available
     Commitment thereunder to zero, unless (i) a Performing Note Deficiency
     exists and a Liquidity Event of Default shall have occurred and be
     continuing with respect to the relevant Primary Liquidity Facility or
     (ii) a Final Drawing shall have occurred with respect to such Primary
     Liquidity Facility, to deposit into the related Primary Cash Collateral
     Account an amount equal to such Primary Cash Collateral Account's
     Required Amount (less the amount of any repayments of Interest Drawings
     under such Primary Liquidity Facility while subclause (B)(i) above is
     applicable) shall be deposited in such Cash Collateral Account, (C) if,
     with respect to any particular Primary Liquidity Facility, neither
     subclause (A) nor subclause (B) of this clause "fourth" are applicable,
     to pay in full the outstanding amount of all Liquidity Obligations then
     due under such Primary Liquidity Facility (other than amounts payable
     pursuant to clause "second" or "third" of this Section 3.3 and as
     determined after giving effect to payments made by the Policy Provider to
     the Primary Liquidity Provider of such Primary Liquidity Facility in
     respect of principal of drawings under such Primary Liquidity Facility),
     pro rata with any amount distributable pursuant to subclause (D) of this
     clause "fourth" on the basis of the amount of all such unreimbursed
     Interest Drawing and unreimbursed Policy Provider Obligations payable to
     the Policy Provider under subclause (D) of this clause "fourth" and (D)
     if the Policy Provider has elected to pay to each Primary Liquidity
     Provider all outstanding drawings and interest owing to such Primary
     Liquidity Provider under its Primary Liquidity Facility pursuant to
     subsection 2.6(c) hereof, to reimburse the Policy Provider for the
     principal amount of such payment made to the Primary Liquidity Providers,
     but only after giving effect to the application of amounts, if any, under
     subclause (A) or (B) of this clause "fourth" and if any amount shall be
     distributable under subclause (C) of this clause "fourth", pro rata with
     any amount distributable pursuant to such subclause (C) on the basis of
     the amounts of all such unreimbursed Liquidity Obligations and the amount
     of such unreimbursed Policy Provider Obligations payable to the Policy
     Provider under this clause "fourth";

          fifth, if, with respect to any particular Primary Liquidity
     Facility, any amounts are to be distributed pursuant to either subclause
     (A) or (B) of clause "fourth" above, then the Primary Liquidity Provider
     with respect to such Primary Liquidity Facility shall be paid the excess
     of (x) the aggregate outstanding amount of unreimbursed Advances (whether
     or not then due) under such Primary Liquidity Facility over (y) the
     Required Amount for the relevant Class (less the amount of any repayments
     of Interest Drawings under such Primary Liquidity Facility while
     subclause (A)(i) or (B)(i), as the case may be, of clause "fourth" above
     is applicable), pro rata on the basis of such amounts in respect of each
     Primary Liquidity Provider;

                                     -46-
<PAGE>

          sixth, such amount as shall be required, if any Above-Cap Account
     had been previously funded as provided in Section 3.6(f), unless (i) a
     Performing Note Deficiency exists and a Liquidity Event of Default shall
     have occurred and be continuing with respect to the relevant Primary
     Liquidity Facility or (ii) a Final Drawing shall have occurred with
     respect to such Primary Liquidity Facility, to fund such Above-Cap
     Reserve Account up to an amount equal to the applicable Termination
     Amount (as recalculated on such Distribution Date) less any amount then
     on deposit in the related Above-Cap Account shall be deposited in such
     Above-Cap Reserve Account;

          seventh, such amount as shall be required to reimburse or pay (i)
     the Subordination Agent for any Tax (other than Taxes imposed on
     compensation paid hereunder), expense, fee, charge or other loss incurred
     by or any other amount payable to the Subordination Agent in connection
     with the transactions contemplated hereby (to the extent not previously
     reimbursed), shall be applied by the Subordination Agent in reimbursement
     of such amount, (ii) each Trustee for any Tax (other than Taxes imposed
     on compensation paid under the applicable Trust Agreement), expense, fee,
     charge, loss or any other amount payable to such Trustee under the
     applicable Trust Agreements (to the extent not previously reimbursed),
     shall be distributed to such Trustee and (iii) each Certificateholder for
     payments, if any, made by it pursuant to Section 5.2 hereof in respect of
     amounts described in clause (i) above, shall be distributed to the
     applicable Trustee for the account of such Certificateholder, in each
     such case, pro rata on the basis of all amounts described in clauses (i)
     through (iii) above;

          eighth, such amount as shall be required to pay in full Adjusted
     Expected Distributions to the holders of Class G-1 and Class G-2
     Certificates on such Distribution Date shall be distributed to the Class
     G-1 and Class G-2 Trustees; provided that if available funds are
     insufficient to pay an Adjusted Expected Distribution to each such Class
     in full, available funds will be distributed to each of the Class G-1
     Trustee and Class G-2 Trustee in the same proportion as such Trustee's
     proportionate share of the aggregate amount of such Adjusted Expected
     Distributions;

          ninth, such amount remaining as shall be required to pay the Policy
     Provider Obligations then due to the Policy Provider under the Policy
     Provider Agreement (other than amounts payable pursuant to clauses
     "first" through "fourth" above and other than any Excess Reimbursement
     Obligations) and any amounts due under the Policy Fee Letter shall be
     paid to the Policy Provider;

          tenth, such amount as shall be required to pay in full Adjusted
     Expected Distributions to the holders of Class C-1 and Class C-2
     Certificates on such Distribution Date shall be distributed to the Class
     C-1 and Class C-2 Trustees; provided that if available funds are
     insufficient to pay an Adjusted Expected Distribution to each such Class
     in full, available funds will be distributed to each of the Class C-1
     Trustee and Class C-2 Trustee in the same proportion as such Trustee's
     proportionate share of the aggregate amount of such Adjusted Expected
     Distributions;

          eleventh, such amount remaining as shall be required to pay any
     Excess Reimbursement Obligations to the Policy Provider;

                                     -47-
<PAGE>

          twelfth, such amount remaining as shall be required to pay in full
     Adjusted Expected Distributions on the Class D Certificates shall be
     distributed to the Class D Trustee, provided, however, that if all of the
     Class D Certificates are owned by one or more Persons that are not
     Affiliates of Northwest and the sale or sales of such Certificates to
     such Persons occurred prior to the occurrence of an Indenture Default
     under any Indenture, the Expected Distributions on the Class D
     Certificates shall be distributed immediately prior to the payment in
     clause "eleventh" above;

          thirteenth, if any Above-Cap Reserve Account had been previously
     funded as provided in Section 3.6(f), unless (i) a Performing Note
     Deficiency exists and a Liquidity Event of Default shall have occurred
     and be continuing with respect to the relevant Primary Liquidity Facility
     or (ii) a Final Drawing shall have occurred with respect to such Primary
     Liquidity Facility, to fund such Above-Cap Reserve Account up to an
     amount equal to the applicable Termination Amount (as recalculated on
     such Distribution Date) shall be deposited in such Above-Cap Reserve
     Account;

          fourteenth, such amount remaining shall be retained in the
     Collection Account until the immediately succeeding Distribution Date or,
     if all Classes of Certificates shall have been paid in full, shall be
     distributed to the Owner Trustee to the extent that the amount received
     from the Loan Trustees and deposited in the Collection Account exceed the
     amounts described in clauses "first" through "thirteenth" above; and

          fifteenth, amount remaining shall be distributed to the
     Certificateholders of the related Trust.

          Section 3.4. Other Payments. (a) Any payments received by the
Subordination Agent for which no provision as to the application thereof is
made in this Agreement shall be distributed by the Subordination Agent in the
order of priority specified in Section 3.3 hereof.

          (b) On any Interest Payment Date under each Primary Liquidity
Facility which is not a Distribution Date, the Subordination Agent shall pay
to the Primary Liquidity Provider under such Primary Liquidity Facility from,
and to the extent of, amounts on deposit in the Collection Account, an amount
equal to the amount of interest then due and payable to such Primary Liquidity
Provider under such Primary Liquidity Facility.

          (c) Except as otherwise provided in Section 3.3 hereof, if the
Subordination Agent receives any Scheduled Payment after the Scheduled Payment
Date relating thereto, but prior to such payment becoming an Overdue Scheduled
Payment, then the Subordination Agent shall deposit such Scheduled Payment in
the Collection Account and promptly distribute such Scheduled Payment in
accordance with the priority of distributions set forth in Section 3.2 hereof;
provided that, for the purposes of this Section 3.4(c) only, each reference in
clause "eleventh" of Section 3.2 to "Distribution Date" shall be deemed to
mean the actual date of payment of such Scheduled Payment and each reference
in clause "sixth", "eighth" or "tenth" of Section 3.2 to "Distribution Date"
shall be deemed to refer to such Scheduled Payment Date.

                                     -48-
<PAGE>

          Section 3.5. Payments to the Trustees, the Primary Liquidity
Providers and the Policy Provider. Any amounts distributed hereunder to any
Primary Liquidity Provider or the Policy Provider shall be paid to such
Primary Liquidity Provider or the Policy Provider by wire transfer of funds to
the address such Primary Liquidity Provider or the Policy Provider shall
provide to the Subordination Agent. The Subordination Agent shall provide a
Written Notice of any such transfer to the applicable Primary Liquidity
Provider or the Policy Provider, as the case may be, at the time of such
transfer. Any amounts distributed hereunder by the Subordination Agent to any
Trustee which shall not be the same institution as the Subordination Agent
shall be paid to such Trustee by wire transfer of funds to the address such
Trustee shall provide to the Subordination Agent.

          Section 3.6. Liquidity Facilities. (a) Interest Drawings and
Above-Cap Payments. If on any Distribution Date, after giving effect to the
subordination provisions of this Agreement and any Election Interest Payment
made by the Policy Provider pursuant to subclause (ii) of Section 3.7(c), the
Subordination Agent shall not have sufficient funds for the payment of any
amounts due and owing in respect of accrued interest on the Class G-1
Certificates, Class G-2 Certificates, Class C-1 Certificates or the Class C-2
Certificates (at the Stated Interest Rate for such Class of Certificates for
the applicable Interest Period), then, prior to 12:00 Noon (New York City
time) on such Distribution Date, (i) the Subordination Agent shall request a
drawing (each such drawing, an "Interest Drawing") under the Primary Liquidity
Facility with respect to such Class of Certificates (and concurrently with the
making of such request, the Subordination Agent shall give notice to the
Policy Provider of such insufficiency of funds) in an amount equal to the
lesser of (x) an amount sufficient to pay the amount of such accrued interest
(calculated at the applicable Stated Interest Rate for such Class of
Certificates for the applicable Interest Period) and (y) the Maximum Available
Commitment under such Liquidity Facility, and shall pay such amount to the
Trustee with respect to such Class of Certificates in payment of such accrued
interest; and (ii) if LIBOR for the Interest Period ending on such
Distribution Date (or, if such Distribution Date is not the last day of an
Interest Period, LIBOR for the Interest Period including such Distribution
Date) exceeds Capped LIBOR, the Subordination Agent shall (if it can make the
certification described in the last sentence of this Section 3.6(a)) request
an interest rate cap payment (each such payment, an "Above-Cap Payment") under
the Above-Cap Liquidity Facility with respect to the Class G-1 Certificates or
the Class C-1 Certificates, as the case may be, for credit to the applicable
Above-Cap Account in an amount equal to the product of (x) the difference
between LIBOR for the Interest Period ending on such Distribution Date (or, if
such Distribution Date is not the last day of an Interest Period, LIBOR for
the Interest Period including such Distribution Date) and Capped LIBOR,
multiplied by (y) the Pool Balance of such Class of Certificates as of such
Distribution Date (and before giving effect to any distribution on such date),
multiplied by (z) the actual number of days elapsed in the Interest Period
ending on such Distribution Date divided by 360, and upon the receipt thereof
the Subordination Agent shall immediately deposit such Above-Cap Payment into
the Above-Cap Account for such Class of Certificates. If the Interest Drawing
on such Distribution Date pursuant to clause (i) above, together with all
other amounts available to the Subordination Agent on such Distribution Date
(after giving effect to the subordination provisions of this Agreement and any
withdrawals from any available Cash Collateral Account related to the relevant
Primary Liquidity Facility), is insufficient to pay accrued interest (at the
Stated Interest Rate for such Class of Certificates for the applicable
Interest Period) payable on such Class of Certificates on such Distribution
Date (such deficiency, the "Deficiency Amount"), the

                                     -49-
<PAGE>

Subordination Agent shall, prior to 4:00 p.m. (New York City time) on such
Distribution Date, withdraw (each, an "Above-Cap Withdrawal") from the
Above-Cap Account for such Class of Certificates an amount equal to the lesser
of (x) such Deficiency Amount and (y) the amount on deposit in such Above-Cap
Account (including any amounts deposited, or to be deposited, on such
Distribution Date pursuant to clause (ii) above), and shall pay such amount to
the Trustee with respect to such Class of Certificates in payment of such
accrued interest. In connection with a request for an Above-Cap Payment under
any Above-Cap Liquidity Facility pursuant to clause (ii) above, the
Subordination Agent shall certify to the Above-Cap Liquidity Provider that at
least one of the following statements is true as of such Distribution Date:
(i) the Maximum Available Commitment under the related Primary Liquidity
Facility (prior to giving effect to any Interest Advances to be made on such
Distribution Date) is greater than zero; (ii) the amount on deposit in the
Primary Cash Collateral Account relating to such Primary Liquidity Facility
(prior to giving effect to any withdrawal to be made from such account on such
Distribution Date) is greater than zero; or (iii) the amount on deposit in the
related Above-Cap Account (prior to giving effect to any withdrawal to be made
from such account on such Distribution Date) is greater than zero.

          (b) Application of Interest Drawings and Above-Cap Withdrawals.
Notwithstanding anything to the contrary contained in this Agreement, (i) all
payments received by the Subordination Agent in respect of an Interest Drawing
under any Primary Liquidity Facility and all amounts withdrawn by the
Subordination Agent from any Primary Cash Collateral Account and payable in
each case to the related Class of Certificateholders shall be promptly
distributed to the Trustee for such Class and applied to the payment of
interest in respect of which it was drawn, except that if (x) the
Subordination Agent shall receive any amount in respect of an Interest Drawing
under the Class G-1 or Class G-2 Primary Liquidity Facility or a withdrawal
from the Class G-1 or Class G-2 Primary Cash Collateral Account to pay Accrued
Class G-1 Interest or Accrued Class G-2 Interest after such Accrued Class G-1
Interest or Accrued Class G-2 Interest has been fully paid by a Policy Drawing
under the applicable Policy pursuant to Section 3.7(a) hereof, or (y) the
Subordination Agent shall receive any amount in respect of a Policy Drawing
under the applicable Policy pursuant to Section 3.7(a) hereof to fully pay
Accrued Class G-1 Interest or Accrued Class G-2 Interest after such Accrued
Class G-1 Interest or Accrued Class G-2 Interest has been paid (in full or in
part) to the applicable Trustee by an Interest Drawing under the applicable
Primary Liquidity Facility or a withdrawal from the applicable Primary Cash
Collateral Account, the Subordination Agent, in either case, shall pay an
amount equal to the amount of such Interest Drawing directly to the Policy
Provider as reimbursement of such Policy Drawing rather than to the applicable
Certificateholders or Trustee and (ii) all payments received by the
Subordination Agent in respect of an Above-Cap Withdrawal from any Above-Cap
Account, and payable to the related Class of Certificateholders shall be
promptly distributed to the Trustee for such Class of Certificateholders and
applied to the payment of interest in respect of which it was drawn, except
that if the Subordination Agent shall receive any amount in respect of such
Above-Cap Withdrawal to pay Accrued Class G-1 Interest after such Accrued
Class G-1 Interest has been fully paid to the applicable Trustee by a Policy
Drawing under the applicable Policy pursuant to Section 3.7(a) hereof, such
amount received in respect of such Above-Cap Withdrawal shall be paid directly
to the Policy Provider as reimbursement of such Policy Drawing rather than to
the applicable Certificateholders or the applicable Trustee.

                                     -50-
<PAGE>

          (c) Downgrade Drawings. (i) If at any time a Downgrade Event shall
have occurred with respect to any Primary Liquidity Facility, the Primary
Liquidity Provider under such Primary Liquidity Facility may arrange, or the
Subordination Agent (in consultation with Northwest), may arrange for a
Replacement Primary Liquidity Provider to issue and deliver a Replacement
Primary Liquidity Facility to the Subordination Agent. If such Primary
Liquidity Facility is not replaced with a Replacement Primary Liquidity
Facility within ten (10) days after such Downgrade Event (but no later than
the expiration date of the Primary Liquidity Facility (the "Downgraded
Facility") in respect of which the Downgrade Event occurs), the Subordination
Agent shall, on the 10th day (or if such 10th day is not a Business Day, on
the next succeeding Business Day) (or, if earlier, the expiration date of such
Downgraded Facility), request a drawing in accordance with and to the extent
permitted by such Downgraded Facility (such drawing, a "Downgrade Drawing") of
the then Maximum Available Commitment thereunder. Amounts drawn pursuant to a
Downgrade Drawing shall be maintained and invested as provided in Section
3.6(f) hereof. The applicable Primary Liquidity Provider may also arrange for
a Replacement Primary Liquidity Provider to issue and deliver a Replacement
Primary Liquidity Facility at any time after such Downgrade Drawing so long as
such Downgrade Drawing has not been reimbursed in full to such Primary
Liquidity Provider.

          (ii) If an "Illegality", "Credit Event Upon Merger" or "Credit
Downgrade" (each as defined in the Class G-1 Above-Cap Liquidity Facility or
the Class C-1 Above-Cap Liquidity Facility, as the case may be, each such
event, a "Mandatory Termination Event") shall occur under either Above-Cap
Liquidity Facility, the Above-Cap Liquidity Provider under such Above-Cap
Liquidity Facility shall provide notice of such Mandatory Termination Event in
writing to Northwest, the Subordination Agent, the Class G-1 Trustee and the
Class C-1 Trustee, and Northwest or such Above-Cap Liquidity Provider may, in
each case at its own expense, arrange for one or more Replacement Above-Cap
Liquidity Providers to issue and deliver a Replacement Above-Cap Liquidity
Facility for such Above-Cap Liquidity Facility to the Subordination Agent. In
addition, if a "Tax Event" or "Tax Event Upon Merger" (as defined in each
Above-Cap Liquidity Facility) shall occur under an Above-Cap Liquidity
Facility, the Above-Cap Liquidity Provider thereunder shall have the right
(but not the obligation) to transfer its rights and obligations under such
Above-Cap Liquidity Facility to another Office (as defined in such Above-Cap
Liquidity Facility), to deliver to the Subordination Agent a Replacement
Above-Cap Liquidity Facility or to pay the applicable Termination Amount on an
Early Termination Date (as defined in each Above-Cap Liquidity Facility)
designated by such Above-Cap Liquidity Provider, all in accordance with the
terms of such Above-Cap Liquidity Facility. In the event that an Above-Cap
Liquidity Provider or Northwest makes arrangements for a Replacement Above-Cap
Liquidity Facility or for the rights and obligations of such Above-Cap
Liquidity Provider under such Above-Cap Liquidity Facility to be transferred,
in either case, in accordance with the terms of the applicable Above-Cap
Liquidity Facility, (y) the Subordination Agent shall, if and to the extent so
requested by such Above-Cap Liquidity Provider or Northwest, execute and
deliver any certificate or other instrument required to give effect to such
replacement or transfer and (z) each of the parties hereto shall enter into
any amendments to this Agreement necessary to give effect to such replacement
or transfer. If an Above-Cap Liquidity Facility subject to a Mandatory
Termination Event has not been replaced in accordance with its terms and the
terms of this paragraph or if an Early Termination Date has been designated
under an Above-Cap Liquidity Facility after the occurrence of an Event of
Default (as defined in such Above-Cap Liquidity Facility) or "Tax Event" or
"Tax Event Upon Merger," such Above-Cap

                                     -51-
<PAGE>

Liquidity Facility shall be terminated and such Above-Cap Liquidity Provider
shall, on such Early Termination Date, pay to the Subordination Agent, for the
benefit of the Trustee on behalf of the holders of the related Class of
Certificates, the applicable Termination Amount for credit to such Above-Cap
Reserve Account relating to such Above-Cap Liquidity Facility to be applied as
provided in Section 3.6(f) hereof plus the amount of all other unpaid sums due
and payable by such Above-Cap Liquidity Provider thereunder on or prior to
such date, and upon such payment, such Above-Cap Liquidity Facility shall be
terminated. Nothing contained herein shall limit the rights of any Above-Cap
Liquidity Provider to transfer its rights and obligations under the applicable
Above-Cap Liquidity Facility or otherwise arrange for a Replacement Above-Cap
Liquidity Facility, subject to and in accordance with the provisions of such
Above-Cap Liquidity Facility.

          (d) Non-Extension Drawings. If any Primary Liquidity Facility with
respect to any Class of Certificates is scheduled to expire on a date (the
"Stated Expiration Date") prior to the date that is 15 days after the Final
Legal Distribution Date for such Class of Certificates, then, no earlier than
the 60th day and no later than the 40th day prior to the then Stated
Expiration Date, the Subordination Agent may request that such Primary
Liquidity Provider renew its obligations under the applicable Primary
Liquidity Facility for a period ending on a date (the "Renewal Date") that is
the earlier of (i) the date which is 15 days after such Final Legal
Distribution Date and (ii) the date that is the day immediately preceding the
364th day occurring after the last day of the applicable Consent Period
(unless the obligations of such Primary Liquidity Provider under such Primary
Liquidity Facility are earlier terminated in accordance with such Primary
Liquidity Facility). Whether or not the Primary Liquidity Provider has
received a request from the Subordination Agent, such Primary Liquidity
Provider shall, by a notice to the Subordination Agent, given during the
period commencing on the date that is 60 days prior to the Stated Expiration
Date then in effect and ending on the date that is 25 days prior to the Stated
Expiration Date then in effect for such Primary Liquidity Facility (such
period, with respect to such Primary Liquidity Facility, the "Consent
Period"), advise the Subordination Agent whether, in its sole discretion, it
consents to such renewal of its obligations under the applicable Primary
Liquidity Facility for the period ending on the Renewal Date, in which event
the Renewal Date shall become the Stated Expiration Date hereunder; provided,
however, that any such consent shall not be effective with respect to such
Primary Liquidity Provider if by a notice (a "Withdrawal Notice") to the
Subordination Agent during the applicable Consent Period such Primary
Liquidity Provider revokes its consent. If (x) on or before the date on which
such Consent Period ends, such Primary Liquidity Facility shall not have been
replaced in accordance with Section 3.6(e), and (y) the applicable Primary
Liquidity Provider shall not have advised the Subordination Agent that it
consents to such renewal of such Primary Liquidity Facility within the
applicable Consent Period or a Withdrawal Notice has been given with respect
to such Primary Liquidity Facility during the applicable Consent Period, the
Subordination Agent shall, on the date on which such Consent Period ends (or
as soon as possible thereafter), in accordance with the terms of the expiring
Primary Liquidity Facility (a "Non-Extended Facility"), request a drawing
under such expiring Primary Liquidity Facility (such drawing, a "Non-Extension
Drawing") of the Maximum Available Commitment thereunder. Amounts drawn
pursuant to a Non-Extension Drawing shall be maintained and invested in
accordance with Section 3.6(f) hereof.

          (e) Issuance of Replacement Primary Liquidity Facility.

                                     -52-
<PAGE>

               (i) At any time, Northwest may, at its option, with cause or
          without cause, arrange for a Replacement Primary Liquidity Facility
          to replace any Primary Liquidity Facility for any Class of
          Certificates (including any Replacement Primary Liquidity Facility
          provided pursuant to Section 3.6(e)(ii) hereof); provided that
          WestLB shall not be replaced by Northwest as a Primary Liquidity
          Provider with respect to any Primary Liquidity Facility prior to the
          fifth anniversary of the Closing Date unless (A) there shall have
          become due to such Primary Liquidity Provider, or such Primary
          Liquidity Provider shall have demanded, amounts pursuant to Sections
          3.01, 3.02 or 3.03 of any applicable Primary Liquidity Facility and
          the replacement of such Primary Liquidity Provider would reduce or
          eliminate the obligation to pay such amounts or Northwest determines
          in good faith that there is a substantial likelihood that such
          Primary Liquidity Provider will have the right to claim any such
          amounts (unless such Primary Liquidity Provider waives, in writing,
          any right it may have to claim such amounts), which determination
          shall be set forth in a certificate delivered by Northwest to such
          Primary Liquidity Provider setting forth the basis for such
          determination and accompanied by an opinion of outside counsel
          selected by Northwest and reasonably acceptable to such Primary
          Liquidity Provider verifying the legal conclusions, if any, of such
          certificate relating to such basis, provided that, in the case of
          any likely claim for such amounts based upon any proposed, or
          proposed change in, law, rule, regulation, interpretation,
          directive, requirement, request or administrative practice, such
          opinion may assume the adoption or promulgation of such proposed
          matter, (B) it shall become unlawful or impossible for such Primary
          Liquidity Provider to maintain or fund its LIBOR Advances as
          described in Section 3.10 of any of its Primary Liquidity
          Facilities, (C) any Primary Liquidity Facility of such Primary
          Liquidity Provider shall become a Downgraded Facility or a
          Non-Extended Facility or a Downgrade Drawing or a Non-Extension
          Drawing shall have occurred under any Primary Liquidity Facility of
          such Primary Liquidity Provider or (D) such Primary Liquidity
          Provider shall have breached any of its payment (including, without
          limitation, funding) obligations under any Primary Liquidity
          Facility in respect of which it is the Primary Liquidity Provider.
          If such Replacement Primary Liquidity Facility is provided at any
          time after a Downgrade Drawing or Non-Extension Drawing has been
          made, all funds on deposit in the relevant Primary Cash Collateral
          Account will be returned to the Primary Liquidity Provider being
          replaced.

               (ii) If any Primary Liquidity Provider shall determine not to
          renew any of its Primary Liquidity Facilities in accordance with
          Section 3.6(d), then such Primary Liquidity Provider may, at its
          option, arrange for a Replacement Primary Liquidity Facility to
          replace such Primary Liquidity Facility during the period no earlier
          than 40 days and no later than 25 days prior to the then effective
          Stated Expiration Date of such Primary Liquidity Facility or at any
          time after such Stated Expiration Date. In addition, at any time
          after a Non-Extension Drawing has been made under any Primary
          Liquidity Facility or at any time after a Primary Liquidity Provider
          has extended the Stated Expiration Date under any such Primary
          Liquidity Facility to a date that is up to 15 days after the
          applicable Final Legal Distribution Date in accordance with the
          provisions of such Primary Liquidity Facility, the Primary Liquidity
          Provider thereunder, may, at its option, arrange for a Replacement
          Primary Liquidity Facility to replace such Primary Liquidity
          Facility; provided, however, if a Primary Liquidity Provider has
          extended the

                                     -53-
<PAGE>

          Stated Expiration Date as described above in this sentence, it shall
          not have the right to replace such Primary Liquidity Facility prior
          to the first anniversary of the Closing Date.

               (iii) No Replacement Primary Liquidity Facility arranged by
          Northwest or a Primary Liquidity Provider in accordance with clause
          (i) or (ii) above or pursuant to Section 3.6(c), respectively, shall
          become effective and no such Replacement Primary Liquidity Facility
          shall be deemed a "Primary Liquidity Facility" under the Operative
          Agreements, unless and until (A) each of the conditions referred to
          in subclauses (iv)(x) and (z) below shall have been satisfied, (B)
          if such Replacement Primary Liquidity Facility shall materially
          adversely affect the rights, remedies, interests or obligations of
          the Class G-1 Certificateholders, the Class G-2 Certificateholders,
          the Class C-1 Certificateholders or the Class C-2 Certificateholders
          under any of the Operative Agreements, the applicable Trustee shall
          have consented, in writing, to the execution and issuance of such
          Replacement Primary Liquidity Facility and (C) in the case of a
          Replacement Primary Liquidity Facility arranged by a Primary
          Liquidity Provider under Section 3.6(e)(ii) or pursuant to Section
          3.6(c), such Replacement Primary Liquidity Facility has been
          consented to by Northwest (which consent, in the case of a
          replacement pursuant to Section 3.6(c), shall not be unreasonably
          withheld).

               (iv) In connection with the issuance of each Replacement
          Primary Liquidity Facility, the Subordination Agent shall (x) prior
          to the issuance of such Replacement Primary Liquidity Facility,
          obtain written confirmation from each Rating Agency that such
          Replacement Primary Liquidity Facility will not cause a reduction of
          any rating then in effect for any Class of Certificates by such
          Rating Agency (without regard to any downgrading of any rating of
          any Primary Liquidity Provider being replaced pursuant to Section
          3.6(c) hereof and without regard to any Policy) and, in the case of
          the Class G-1 Primary Liquidity Facility or the Class G-2 Primary
          Liquidity Facility, the written consent of the Policy Provider
          (which consent shall not be unreasonably withheld or delayed), (y)
          pay all Primary Liquidity Obligations then owing to the replaced
          Primary Liquidity Provider (which payment shall be made first from
          available funds in the applicable Primary Cash Collateral Account as
          described in clause (v) of Section 3.6(f) hereof, and thereafter
          from any other available source, including, without limitation, a
          drawing under the Replacement Primary Liquidity Facility) and (z)
          cause the issuer of the Replacement Primary Liquidity Facility to
          deliver the Replacement Primary Liquidity Facility to the
          Subordination Agent, together with a legal opinion opining that such
          Replacement Primary Liquidity Facility is an enforceable obligation
          of such Replacement Primary Liquidity Provider.

               (v) Upon satisfaction of the conditions set forth in clauses
          (iii) and (iv) of this Section 3.6(e) with respect to a Replacement
          Primary Liquidity Facility, (w) the replaced Primary Liquidity
          Facility shall terminate, (x) the Subordination Agent shall, if and
          to the extent so requested by Northwest or the Primary Liquidity
          Provider being replaced, execute and deliver any certificate or
          other instrument required in order to terminate the replaced Primary
          Liquidity Facility, shall surrender the replaced Primary Liquidity
          Facility to the Primary Liquidity Provider being replaced and shall
          execute and deliver the Replacement Primary Liquidity Facility and
          any associated Fee Letter, (y) each of the parties hereto shall
          enter into any amendments to this Agreement necessary to give effect

                                     -54-
<PAGE>

          to (1) the replacement of the applicable Primary Liquidity Provider
          with the applicable Replacement Primary Liquidity Provider and (2)
          the replacement of the applicable Primary Liquidity Facility with
          the applicable Replacement Primary Liquidity Facility and (z) the
          applicable Replacement Primary Liquidity Provider shall be deemed to
          be a Primary Liquidity Provider, with the rights and obligations of
          a Primary Liquidity Provider hereunder and under the other Operative
          Agreements and such Replacement Primary Liquidity Facility shall be
          deemed to be a Primary Liquidity Facility hereunder and under the
          other Operative Agreements.

          (f) Cash Collateral Accounts; Above-Cap Accounts; Withdrawals;
Investments. In the event the Subordination Agent shall draw all Maximum
Available Commitments under any Primary Liquidity Facility pursuant to
Sections 3.6(c), 3.6(d) or 3.6(i) hereof, or in the event amounts are to be
deposited in any Primary Cash Collateral Account related to the Primary
Liquidity Facilities pursuant to subclause (A) or (B) of clause "third" of
Section 2.4(b), subclause (A) or (B) of clause "third" of Section 3.2 or
subclause (A) or (B) of clause "fourth" of Section 3.3, amounts so drawn or to
be deposited, as the case may be, shall be deposited by the Subordination
Agent in the related Primary Cash Collateral Account. If any Above-Cap
Liquidity Provider shall at any time make a Termination Amount payment under
its Above-Cap Liquidity Facility, such Termination Amount payment shall be
deposited by the Subordination Agent in the related Above-Cap Reserve Account
to be applied as specified below in this Section 3.6(f). All amounts on
deposit in each Cash Collateral Account shall be invested and reinvested in
Eligible Investments in accordance with Section 2.2(b) hereof. On each
Interest Payment Date (or, in the case of any Special Distribution Date with
respect to a distribution pursuant to Section 2.4(b) hereof occurring prior to
the occurrence of a Triggering Event, on such Special Distribution Date),
Investment Earnings on amounts on deposit in each Primary Cash Collateral
Account (or, in the case of any Special Distribution Date with respect to a
distribution pursuant to Section 2.4(b) hereof occurring prior to the
occurrence of a Triggering Event, a fraction of such Investment Earnings equal
to the Section 2.4(b) Fraction) shall be deposited in the Collection Account
(or, in the case of any Special Distribution Date with respect to a
distribution pursuant to Section 2.4(b) hereof occurring prior to the
occurrence of a Triggering Event, the Special Payments Account) and applied on
such Interest Payment Date (or Special Distribution Date, as the case may be)
in accordance with Sections 2.4, 3.2, 3.3 or 3.4 (as applicable). Investment
Earnings on amounts on deposit in any Above-Cap Reserve Account shall be
credited to such account and applied in the same manner as the Termination
Amount payment credited thereto. Investment Earnings on amounts on deposit in
the Above-Cap Accounts shall be credited to such account and applied in the
same manner as Above-Cap Payments credited thereto. The Subordination Agent
shall deliver a written statement to Northwest and each Liquidity Provider one
day prior to each Interest Payment Date and Special Distribution Date setting
forth the amount of Investment Earnings held in each of the Cash Collateral
Accounts as of such date. The Subordination Agent shall also deliver a written
statement to Northwest and each Liquidity Provider one day after each
Distribution Date on which amounts have been deposited in any Above-Cap Account
and/or withdrawn from any Above-Cap Reserve Account setting forth the amount of
such deposit and/or withdrawal. In addition, from and after the date funds are
so deposited, the Subordination Agent shall make withdrawals from such
accounts as follows:

                                     -55-
<PAGE>

               (i) on each Distribution Date, the Subordination Agent shall,
          to the extent it shall not have received funds to pay accrued and
          unpaid interest due and owing on the Class G-1 Certificates (at the
          Stated Interest Rate for the Class G-1 Certificates for the
          applicable Interest Period) after giving effect to the subordination
          provisions of this Agreement and any Election Interest Payment made
          by the Policy Provider, (A) withdraw from the Class G-1 Primary Cash
          Collateral Account, and pay to the Class G-1 Trustee an amount equal
          to the lesser of (x) an amount necessary to pay accrued and unpaid
          interest (at the Stated Interest Rate for the Class G-1 Certificates
          for the applicable Interest Period) on such Class G-1 Certificates
          and (y) the amount on deposit in the Class G-1 Primary Cash
          Collateral Account (so long as the aggregate amount of unreplenished
          withdrawals, including such withdrawal, does not exceed the Required
          Amount for such Distribution Date); and (B) if an "Above-Cap Payment"
          would have been required to be made on such Distribution Date
          pursuant to the terms of the Class G-1 Above-Cap Liquidity Facility
          were such Liquidity Facility still in effect, withdraw from the
          Class G-1 Above-Cap Reserve Account, and deposit into the Class G-1
          Above-Cap Account, an amount (if any) equal to the lesser of (x) an
          amount equal to such Above-Cap Payment and (y) the amount on deposit
          in the Class G-1 Above-Cap Reserve Account;

               (ii) on each Distribution Date, the Subordination Agent shall,
          to the extent it shall not have received funds to pay accrued and
          unpaid interest due and owing on the Class G-2 Certificates (at the
          Stated Interest Rate for the Class G-2 Certificates for the
          applicable Interest Period) after giving effect to the subordination
          provisions of this Agreement and any Election Interest Payment made
          by the Policy Provider, withdraw from the Class G-2 Primary Cash
          Collateral Account, and pay to the Class G-2 Trustee an amount equal
          to the lesser of (x) an amount necessary to pay accrued and unpaid
          interest (at the Stated Interest Rate for the Class G-2 Certificates
          for the applicable Interest Period) on such Class G-2 Certificates
          and (y) the amount on deposit in the Class G-2 Primary Cash
          Collateral Account (so long as the aggregate amount of unreplenished
          withdrawals, including such withdrawal, does not exceed the Required
          Amount for such Distribution Date);

               (iii) on each Distribution Date, the Subordination Agent shall,
          to the extent it shall not have received funds to pay accrued and
          unpaid interest due and owing on the Class C-1 Certificates (at the
          Stated Interest Rate for the Class C-1 Certificates for the
          applicable Interest Period) after giving effect to the subordination
          provisions of this Agreement, (A) withdraw from the Class C-1 Primary
          Cash Collateral Account, and pay to the Class C-1 Trustee an amount
          equal to the lesser of (x) an amount necessary to pay accrued and
          unpaid interest (at the Stated Interest Rate for the Class C-1
          Certificates for the applicable Interest Period) on such Class C-1
          Certificates and (y) the amount on deposit in the Class C-1 Primary
          Cash Collateral Account (so long as the aggregate amount of
          unreplenished withdrawals, including such withdrawal, does not
          exceed the Required Amount for such Distribution Date); and (B) if
          an "Above-Cap Payment" would have been required to be made on such
          Distribution Date pursuant to the terms of the Class C-1 Above-Cap
          Liquidity Facility were such Liquidity Facility still in effect,
          withdraw from the Class C-1 Above-Cap Reserve Account, and deposit
          into the Class C-1 Above-Cap Account, an amount (if any) equal to the
          lesser of (x) an amount equal to

                                     -56-
<PAGE>

          such Above-Cap Payment and (y) the amount on deposit in the Class C-1
          Above-Cap Reserve Account;

               (iv) on each Distribution Date, the Subordination Agent shall,
          to the extent it shall not have received funds to pay accrued and
          unpaid interest due and owing on the Class C-2 Certificates (at the
          Stated Interest Rate for the Class C-2 Certificates for the
          applicable Interest Period) after giving effect to the subordination
          provisions of this Agreement, withdraw from the Class C-2 Primary
          Cash Collateral Account, and pay to the Class C-2 Trustee an amount
          equal to the lesser of (x) an amount necessary to pay accrued and
          unpaid interest (at the Stated Interest Rate for the Class C-2
          Certificates for the applicable Interest Period) on such Class C-2
          Certificates and (y) the amount on deposit in the Class C-2 Primary
          Cash Collateral Account (so long as the aggregate amount of
          unreplenished withdrawals, including such withdrawal, does not
          exceed the Required Amount for such Distribution Date);

               (v) on each date on which the Pool Balance of the Class G-1
          Trust shall have been reduced by payments made to the Class G-1
          Certificateholders pursuant to Sections 2.4, 3.2 or 3.3 hereof or
          pursuant to Section 2.3 of the Escrow and Paying Agent Agreement for
          such Class, the Subordination Agent shall withdraw from the Class G-1
          Primary Cash Collateral Account such amount as is necessary so that,
          after giving effect to the reduction of the Pool Balance on such
          date (and any reduction in the amounts on deposit in the Class G-1
          Primary Cash Collateral Account resulting from a prior withdrawal of
          amounts on deposit in the Class G-1 Primary Cash Collateral Account
          on such date) and any transfer of Investment Earnings from such Cash
          Collateral Account to the Collection Account or the Special Payments
          Account on such date, an amount equal to the sum of the Required
          Amount plus Investment Earnings on deposit in such Cash Collateral
          Account (after giving effect to any such transfer of Investment
          Earnings) will be on deposit in the Class G-1 Primary Cash Collateral
          Account and shall first, pay such withdrawn amount to the Class G-1
          Primary Liquidity Provider until the Liquidity Obligations (with
          respect to the Class G-1 Certificates) owing to such Primary
          Liquidity Provider shall have been paid in full, and second, deposit
          any remaining withdrawn amount in the Collection Account;

               (vi) on each date on which the Pool Balance of the Class G-2
          Trust shall have been reduced by payments made to the Class G-2
          Certificateholders pursuant to Sections 2.4, 3.2 or 3.3 hereof or
          pursuant to Section 2.3 of the Escrow and Paying Agent Agreement for
          such Class, the Subordination Agent shall withdraw from the Class G-2
          Primary Cash Collateral Account such amount as is necessary so that,
          after giving effect to the reduction of the Pool Balance on such
          date (and any reduction in the amounts on deposit in the Class G-2
          Primary Cash Collateral Account resulting from a prior withdrawal of
          amounts on deposit in the Class G-2 Primary Cash Collateral Account
          on such date) and any transfer of Investment Earnings from such Cash
          Collateral Account to the Collection Account or the Special Payments
          Account on such date, an amount equal to the sum of the Required
          Amount plus Investment Earnings on deposit in such Cash Collateral
          Account (after giving effect to any such transfer of Investment
          Earnings) will be on deposit in the Class G-2 Primary Cash Collateral
          Account and shall first, pay such withdrawn amount to the Class G-2
          Primary Liquidity Provider until the Liquidity

                                     -57-
<PAGE>

          Obligations (with respect to the Class G-2 Certificates) owing to
          such Primary Liquidity Provider shall have been paid in full, and
          second, deposit any remaining withdrawn amount in the Collection
          Account;

               (vii) on each date on which the Pool Balance of the Class C-1
          Trust shall have been reduced by payments made to the Class C-1
          Certificateholders pursuant to Sections 2.4, 3.2 or 3.3 hereof or
          pursuant to Section 2.3 of the Escrow and Paying Agent Agreement for
          such Class, the Subordination Agent shall withdraw from the Class C-1
          Primary Cash Collateral Account such amount as is necessary so that,
          after giving effect to the reduction of the Pool Balance on such
          date (and any reduction in the amounts on deposit in the Class C-1
          Primary Cash Collateral Account resulting from a prior withdrawal of
          amounts on deposit in the Class C-1 Primary Cash Collateral Account
          on such date) and any transfer of Investment Earnings from such Cash
          Collateral Account to the Collection Account or the Special Payments
          Account on such date, an amount equal to the sum of the Required
          Amount plus Investment Earnings on deposit in such Cash Collateral
          Account (after giving effect to any such transfer of Investment
          Earnings) will be on deposit in the Class C-1 Primary Cash Collateral
          Account and shall first, pay such withdrawn amount to the Class C-1
          Primary Liquidity Provider until the Liquidity Obligations (with
          respect to the Class C-1 Certificates) owing to such Primary
          Liquidity Provider shall have been paid in full, and second, deposit
          any remaining withdrawn amount in the Collection Account;

               (viii) on each date on which the Pool Balance of the Class C-2
          Trust shall have been reduced by payments made to the Class C-2
          Certificateholders pursuant to Sections 2.4, 3.2 or 3.3 hereof or
          pursuant to Section 2.3 of the Escrow and Paying Agent Agreement for
          such Class, the Subordination Agent shall withdraw from the Class C-2
          Primary Cash Collateral Account such amount as is necessary so that,
          after giving effect to the reduction of the Pool Balance on such
          date (and any reduction in the amounts on deposit in the Class C-2
          Primary Cash Collateral Account resulting from a prior withdrawal of
          amounts on deposit in the Class C-2 Primary Cash Collateral Account
          on such date) and any transfer of Investment Earnings from such Cash
          Collateral Account to the Collection Account or the Special Payments
          Account on such date, an amount equal to the sum of the Required
          Amount plus Investment Earnings on deposit in such Cash Collateral
          Account (after giving effect to any such transfer of Investment
          Earnings) will be on deposit in the Class C-2 Primary Cash Collateral
          Account and shall first, pay such withdrawn amount to the Class C-2
          Primary Liquidity Provider until the Liquidity Obligations (with
          respect to the Class C-2 Certificates) owing to such Primary
          Liquidity Provider shall have been paid in full, and second, deposit
          any remaining withdrawn amount in the Collection Account;

               (ix) if a Replacement Primary Liquidity Facility for any Class
          of Certificates shall be delivered to the Subordination Agent
          following the date on which funds have been deposited into the
          Primary Cash Collateral Account related to the Primary Liquidity
          Facility for such Class of Certificates, the Subordination Agent
          shall withdraw all amounts on deposit in such Primary Cash
          Collateral Account and shall pay such amounts to such replaced
          Primary Liquidity Provider until all Liquidity Obligations owed to
          such

                                     -58-
<PAGE>

          Person shall have been paid in full, and shall deposit any remaining
          amount in the Collection Account; and;

               (x) following the payment of Final Distributions with respect
          to any Class of Certificates, on the date on which the Subordination
          Agent shall have been notified by the Primary Liquidity Provider for
          such Class of Certificates that the Liquidity Obligations owed to
          such Primary Liquidity Provider have been paid in full, the
          Subordination Agent shall withdraw all amounts on deposit in the
          Primary Cash Collateral Account related to the Primary Liquidity
          Facility in respect of such Class of Certificates and shall deposit
          such amount in the Collection Account and, in the case of the Class
          G-1 Certificates and the Class C-1 Certificates, (y) on the first
          Business Day occurring immediately after the earlier of (1) the date
          of the payment of Final Distributions with respect to such Class of
          Certificates and (2) the Final Legal Distribution Date for such
          Class of Certificates (after giving effect to all distributions to
          be made on such date), the Subordination Agent shall pay to the
          relevant Above-Cap Liquidity Provider an amount equal to the sum of
          the amounts (if any) on deposit in (A) the Above-Cap Account relating
          to such Class of Certificate and (B) the Above-Cap Reserve Account
          relating to such Class of Certificate.

          (g) Reinstatement. With respect to any Interest Drawing under the
Primary Liquidity Facility for any applicable Trust, upon the reimbursement of
the applicable Primary Liquidity Provider for all or any part of the amount of
such Interest Drawing, together with any accrued interest thereon, the Maximum
Available Commitment of such Primary Liquidity Facility shall be reinstated by
an amount equal to the amount of such Interest Drawing so reimbursed to the
applicable Primary Liquidity Provider but not to exceed the Stated Amount for
such Primary Liquidity Facility; provided, however, that such Primary
Liquidity Facility shall not be so reinstated in part or in full at any time
if (x) both a Performing Note Deficiency exists and a Liquidity Event of
Default shall have occurred and be continuing with respect to the relevant
Primary Liquidity Facility or (y) a Final Drawing shall have occurred with
respect to such Primary Liquidity Facility; provided, further, that any
payment by the Policy Provider to any Primary Liquidity Provider of any
amounts pursuant to the second proviso to Section 2.6(c) shall not reinstate
the related Primary Liquidity Facility, but such Primary Liquidity Facility
(so long as such Primary Liquidity Facility is in effect) shall be reinstated,
pro tanto, to the extent the Policy Provider receives any reimbursement in
respect of such payment under clause "third" of Section 2.4(b), clause "third"
of Section 3.2 or clause "fourth" of Section 3.3., unless (x) both a
Performing Note Deficiency exists and a Liquidity Event of Default shall have
occurred with respect to such Primary Liquidity Facility or (y) a Final
Drawing shall have occurred with respect to such Primary Liquidity Facility.
In the event that, with respect to any particular Primary Liquidity Facility,
(i) funds are withdrawn from any related Primary Cash Collateral Account
pursuant to clause (i) or (ii) of Section 3.6(f) hereof or (ii) such Primary
Liquidity Facility shall become a Downgraded Facility or a Non-Extended
Facility at a time when unreimbursed Interest Drawings under such Primary
Liquidity Facility have reduced the Maximum Available Commitment thereunder to
zero, then funds received by the Subordination Agent at any time other than
(x) any time when a Liquidity Event of Default shall have occurred and be
continuing with respect to such Primary Liquidity Facility and a Performing
Note Deficiency exists or (y) any time after a Final Drawing shall have
occurred with respect to such Primary Liquidity Facility shall be deposited in
such Primary Cash Collateral Account as and to

                                     -59-
<PAGE>

the extent provided in clause "third" of Section 2.4(b), clause "third" of
Section 3.2 or clause "third" of Section 3.3, as applicable, and applied in
accordance with Section 3.6(f) hereof.

          (h) Reimbursement. The amount of each drawing under the Primary
Liquidity Facilities shall be due and payable, together with interest thereon,
on the dates and at the rates, respectively, provided in the Primary Liquidity
Facilities. The Subordination Agent shall have no obligation to reimburse the
Above-Cap Liquidity Provider for any Above-Cap Payments and the Above-Cap
Liquidity Provider shall have no interest in any monies credited to any Trust
Account except as provided in Section 3.6(f)(x) hereof.

          (i) Final Drawing. Upon receipt from a Primary Liquidity Provider of
a Termination Notice with respect to any Primary Liquidity Facility, the
Subordination Agent shall, not later than the date specified in such
Termination Notice, in accordance with the terms of such Primary Liquidity
Facility, request a drawing under such Primary Liquidity Facility of the
Maximum Available Commitment thereunder (a "Final Drawing"). Amounts drawn
pursuant to a Final Drawing shall be maintained and invested in accordance
with Section 3.6(f) hereof.

          (j) Reduction of Stated Amount. Promptly following each date on
which the Required Amount of the Primary Liquidity Facility for a Class of
Certificates is reduced as a result of a reduction in the Pool Balance with
respect to such Certificates (including, in the case of the Class G-1 and Class
G-2 Certificates, by reason of a Policy Provider Election with respect to one
or more Series G-1 or Series G-2 Equipment Notes, as the case may be) or
otherwise, the Stated Amount shall be automatically reduced to an amount equal
to the Required Amount with respect to such Primary Liquidity Facility (as
calculated by the Subordination Agent).

          (k) Relation to Subordination Provisions. Interest Drawings under
the Primary Liquidity Facilities and withdrawals from the Primary Cash
Collateral Accounts relating to such Primary Liquidity Facilities and the
Above-Cap Accounts, in each case, in respect of interest on the Certificates of
any Class, will be distributed to the Trustee for such Class of Certificates,
notwithstanding Sections 2.4, 3.2 and 3.3 hereof.

          Section 3.7. The Policies. The following provisions of paragraphs
(a) through (h) of this Section 3.7 shall apply to (i) the Class G-1 Trust and
the Class G-1 Certificates and (ii) the Class G-2 Trust and the Class G-2
Certificates, as if such provisions are separately set forth in full for each
of the Class G-1 Trust (and the Class G-1 Certificates) and the Class G-2 Trust
(and the Class G-2 Certificates). For the purposes of clause (i) above, each
reference in paragraphs (a) through (i) of this Section 3.7 to "Accrued Class
G Interest", "Class G Primary Cash Collateral Account", "Class G
Certificates", "Class G Certificateholders", "Class G Deposits", "Class G
Primary Liquidity Facility", "Class G Paying Agent Account", "Class G Trust",
"Class G Trustee", "Class G Escrow Receipts", "Policy", "Policy Account" and
"Series G Equipment Note" shall mean "Accrued Class G-1 Interest", "Class G-1
Primary Cash Collateral Account", "Class G-1 Certificates", "Class G-1
Certificateholders", "Class G-1 Deposits", "Class G-1 Escrow Receipts", "Class
G-1 Primary Liquidity Facility", "Class G-1 Paying Agent Account", "Class G-1
Trust", "Class G-1 Trustee", "Class G-1 Policy", "Class G-1 Policy Account" and
"Series G-1 Equipment Note", respectively. For the purposes of clause (ii)
above, each reference in paragraphs (a) through (i) of this Section 3.7 to
"Accrued Class G Interest", "Class G Primary Cash Collateral Account", "Class
G Certificates", "Class G

                                     -60-
<PAGE>

Certificateholders", "Class G Deposits", "Class G Primary Liquidity Facility",
"Class G Paying Agent Account", "Class G Trustee", "Class G Escrow Receipts",
"Policy", "Policy Account" and "Series G Equipment Note" shall mean "Accrued
Class G-2 Interest", "Class G-2 Primary Cash Collateral Account", "Class G-2
Certificates", "Class G-2 Certificateholders", "Class G-2 Deposits", "Class G-2
Escrow Receipts", "Class G-2 Primary Liquidity Facility", "Class G-2 Paying
Agent Account", "Class G-2 Trust", "Class G-2 Trustee", "Class G-2 Policy",
"Class G-2 Policy Account" and "Series G-2 Equipment Note", respectively.

          (a) Interest Drawings. If on any Regular Distribution Date (other
than the Final Legal Distribution Date) after giving effect to the application
of available funds in accordance with the priorities specified in Section 2.4
and Article III, and taking into account the application of any amounts
received by the Escrow Agent in the Class G Paying Agent Account in respect of
accrued interest on the Class G Deposits, any Drawing paid under the Class G
Primary Liquidity Facility in respect of accrued interest and any withdrawal
of funds from the Class G Primary Cash Collateral Account (and, in the case of
the Class G-1 Certificates, the Class G-1 Above-Cap Account) in respect of such
interest, the Subordination Agent (or, in the case of the Escrow Receipts, the
Paying Agent) does not then have sufficient funds available for the payment of
Accrued Class G Interest, then, prior to 1:00 p.m. (New York City time) on
such Distribution Date, the Subordination Agent (i) shall deliver a Notice of
Nonpayment, as provided in the Policy to the Policy Provider or its fiscal
agent, requesting a Policy Drawing under the Policy (for payment into the
Policy Account) in an amount sufficient to enable the Subordination Agent to
pay such Accrued Class G Interest and (ii) shall pay such amount from the
related Policy Account to the Class G Trustee or the Escrow Agent for deposit
into the Class G Paying Agent Account, as the case may be) in payment of such
Accrued Class G Interest on such Distribution Date.

          (b) Proceeds Deficiency Drawing. If on any Special Distribution Date
(other than a Special Distribution Date established pursuant to the second
paragraph of Section 3.7(c)) established by the Subordination Agent by reason
of its receipt of a Special Payment (a "Disposition Payment") constituting the
proceeds of any Series G Equipment Note or related Collateral or Indenture
Estate, as the case may be, there exists a shortfall in the amounts available
to the Subordination Agent (after giving effect to the application of
available funds (including, without limitation, the amount of such Disposition
Payment) in accordance with the priorities specified in Section 2.4 and
Article III, and (if the disposition of such Series G Equipment Note or
related Collateral or Indenture Estate occurs prior to a Policy Provider
Election with respect to such Series G Equipment Note) taking into account the
application of any amounts received by the Escrow Agent in the Class G Paying
Agent Account in respect of accrued interest on the Class G Deposits, any
Drawing paid under the Class G Primary Liquidity Facility in respect of such
interest, any withdrawal of funds in the Class G Primary Cash Collateral
Account in respect of such interest (and, in the case of the Class G-1
Certificates, the Class G-1 Above-Cap Account)) required to reduce the
outstanding Pool Balance of the Class G Certificates by an amount equal to the
outstanding principal amount of the applicable Series G Equipment Note
(determined immediately prior to the receipt of such Disposition Payment and
less the amount of any Policy Drawing previously paid by the Policy Provider
in respect of principal of such Series G Equipment Note) plus accrued and
unpaid interest on the amount of such reduction accrued at the Stated Interest
Rate for the Class G Certificates for the period from the immediately
preceding Regular Distribution Date to such Special Distribution Date, then,

                                     -61-
<PAGE>

prior to 1:00 p.m. (New York City time) on such Special Distribution Date, the
Subordination Agent (x) shall deliver a Notice of Nonpayment, as provided in
the Policy (for payment into the Policy Account) in an amount equal to the
amount of such shortfall and (y) shall pay such amount from the Policy Account
to the Class G Trustee in payment of such reduction in the outstanding Pool
Balance of the Class G Certificates plus such accrued and unpaid interest on
such Special Distribution Date. The Subordination Agent shall promptly, but
not less than 20 days prior to the Special Distribution Date established
pursuant to this Section 3.7(b), send to Northwest, the Trustees, the Primary
Liquidity Provider for the Class G Primary Liquidity Facility and the Policy
Provider, a Written Notice of such Special Distribution Date.

          (c) No Proceeds Drawing. On the first Business Day (which shall be a
Special Distribution Date) that is 21 months after the last date on which full
payment was made on any Series G Equipment Note (a "Defaulted Series G
Equipment Note") as to which there has subsequently been a failure to pay
principal or that has subsequently been Accelerated, if the Subordination
Agent has not theretofore made a drawing under the Policy pursuant to Section
3.7(b), the Subordination Agent shall deliver a Notice of Nonpayment, as
provided in the Policy, to the Policy Provider or its fiscal agent, requesting
a Policy Drawing under the Policy (for payment into the Policy Account) in an
amount equal to the then outstanding principal amount of such Defaulted Series
G Equipment Note plus accrued and unpaid interest thereon from the immediately
preceding Regular Distribution Date. The Subordination Agent shall promptly,
but not less than 25 days prior to such Business Day, send to Northwest, the
Trustees, the Primary Liquidity Provider for the Class G Primary Liquidity
Facility and the Policy Provider a Written Notice establishing such Business
Day as the date for the distribution of the proceeds of such Policy Drawing,
which date shall constitute a Special Distribution Date. No later than 1:00
p.m. (New York City time) on the specified Special Distribution Date the
Subordination Agent shall make the specified Policy Drawing and upon its
receipt of the proceeds thereof pay the amount thereof from the Policy Account
to the Class G Trustee in reduction of the outstanding Pool Balance of the
Class G Certificates together with such accrued and unpaid interest on the
amount of such reduction. For the avoidance of doubt, after the payment by the
Policy Provider in full of such amount under this Section 3.7(c), the
Subordination Agent shall have no right to make any further Policy Drawings
under Section 3.7(c) in respect of such Defaulted Series G Equipment Note
except for a drawing under Section 3.7(e).

          Notwithstanding the foregoing, the Policy Provider has the right, so
long as no Policy Provider Default shall have occurred and be continuing, upon
notice to the Subordination Agent given at least five days prior to the
Special Distribution Date established by the Subordination Agent pursuant to
the first paragraph of this Section 3.7(c), to elect instead (the "Policy
Provider Election") to pay (i) on such Special Distribution Date an amount
equal to the scheduled principal and interest that came due on such Defaulted
Series G Equipment Note (without regard to the Acceleration thereof) but was
not paid during such 21-month period (after giving effect to the application of
funds received from the Class G Primary Liquidity Facility and the Class G
Primary Cash Collateral Account (and in the case of the Class G-1 Certificates,
the Class G-1 Above-Cap Account), in each case attributable to such interest)
and (ii) thereafter, on each Regular Distribution Date, an amount equal to the
scheduled principal and interest that were to become due on such Defaulted
Series G Equipment Note on the related payment date (without regard to any
acceleration thereof or to any funds available under any Liquidity Facility or
any Cash Collateral Account) until the establishment of an Election
Distribution Date or a Special

                                     -62-
<PAGE>

Distribution Date established as provided in the immediately following
sentence (each such interest payment, an "Election Interest Payment").
Following a Policy Provider Election with respect to a Defaulted Series G
Equipment Note, on any Business Day (which shall be a Special Distribution
Date) elected by the Policy Provider upon 20 days' Written Notice to the
Subordination Agent and the Class G Trustee, the Policy Provider may,
notwithstanding the Policy Provider Election, request the Subordination Agent
to, and the Subordination Agent shall, make a Policy Drawing for an amount
equal to the then outstanding principal balance of such Defaulted Series G
Equipment Note (less any Policy Drawings previously paid by the Policy
Provider in respect of principal of such Defaulted Series G Equipment Note)
and accrued and unpaid interest on such amounts at the Stated Interest Rate
for the Class G Certificates from the previous Regular Distribution Date to
such Special Distribution Date.

          Further, following a Policy Provider Election with respect to a
Defaulted Series G Equipment Note, upon the occurrence and continuance of a
Policy Provider Default, the Subordination Agent shall on any Business Day (an
"Election Distribution Date", which shall be a Special Distribution Date)
elected by the Subordination Agent upon 20 days' Written Notice to the Class G
Trustee and the Policy Provider, make a Policy Drawing for an amount equal to
the then outstanding principal balance of such Defaulted Series G Equipment
Note (less any Policy Drawings previously paid by the Policy Provider in
respect of principal of such Equipment Note) and accrued and unpaid interest
on such amounts at the Stated Interest Rate for the Class G Certificates from
the immediately preceding Regular Distribution Date to such Election
Distribution Date. The Subordination Agent shall make each such Policy Drawing
referred to in this subparagraph (c) under the Policy (for payment into the
Policy Account) no later than 1:00 p.m. (New York City time) on the relevant
Special Distribution Date and upon its receipt of the proceeds thereof pay the
amount thereof from the Policy Account to the Class G Trustee in reduction of
the outstanding Pool Balance of the Class G Certificates together with such
accrued and unpaid interest thereon.

          In addition, regardless of whether or not the Policy Provider makes
a Policy Provider Election, the Policy Provider shall, at the end of the first
occurring 21-month period described in Section 3.7(c), endorse the Policy (if
not already endorsed to so provide) to provide for the payment to the Primary
Liquidity Provider with respect to the Class G-1 Certificates and to the
Primary Liquidity Provider with respect to the Class G-2 Certificates of
interest accruing on the outstanding drawings in respect of the related
Liquidity Facilities from and after the end of such 21-month period as and when
such interest becomes due in accordance with such Primary Liquidity
Facilities. The Policy Provider hereby agrees not to otherwise amend or modify
the Policy without the consent of the Primary Liquidity Provider if such
amendment or modification would adversely affect the rights of the Primary
Liquidity Provider.

          (d) Final Policy Drawing. If on the Final Legal Distribution Date of
the Class G Certificates after giving effect to the application of available
funds in accordance with the priorities specified in Section 2.4 and Article
III, and taking into account the application of any amounts received by the
Escrow Agent in the Class G Paying Agent Account in respect of accrued
interest on the Class G Deposits, any Drawing paid under the Class G Primary
Liquidity Facility in respect of interest included in the Final Distribution
and any withdrawal of funds in the Class G Primary Cash Collateral Account
(and, in the case of the Class G-1 Certificates, the Class G-1 Above Cap
Account) in respect of interest included in the Final Distribution, the

                                     -63-
<PAGE>

Subordination Agent does not then have sufficient funds available on such date
for the payment in full of the Final Distribution (calculated as at such date
but excluding any accrued and unpaid Make-Whole Premium or Break Amount) on the
Class G Certificates then, prior to 1:00 p.m. (New York City time) on such
date, the Subordination Agent shall: (i) deliver a Notice of Nonpayment, as
provided in the Policy, to the Policy Provider or its fiscal agent, requesting
a Policy Drawing under the Policy (for payment into the Policy Account) in an
amount equal to the minimum amount sufficient to enable the Subordination
Agent to pay the Final Distribution (calculated as at such date but excluding
any accrued and unpaid premium) on the Class G Certificates, and (ii) shall
pay such amount from the Policy Account to the Class G Trustee in payment of
such amount on such date.

          If on the Final Withdrawal Date (as defined in the Escrow and Paying
Agent Agreement for the Class G Certificates) the full amount of the Class G
Deposits has not been used to purchase the Class G Equipment Notes and there
is a shortfall in the amount available to the Paying Agent for the payment in
full of the unpaid principal amount of the Escrow Receipts then, prior to 1:00
p.m. (New York City time) on such date, the Subordination Agent shall: (i)
deliver a Notice of Nonpayment, as provided in the Policy, to the Policy
Provider or its fiscal agent, requesting a Policy Drawing under the Policy
(for payment into the Policy Account) in an amount equal to the amount of such
shortfall and (ii) shall pay such amount from the Policy Account to the Paying
Agent for the Class G Trust in payment of such amount on such date.

          (e) Avoidance Drawings. If at any time the Subordination Agent shall
have actual knowledge of the issuance of any Final Order, the Subordination
Agent shall promptly give notice thereof to Northwest, each Trustee, the
Liquidity Providers and the Policy Provider. The Subordination Agent shall
thereupon calculate the relevant Avoided Payments resulting therefrom and
shall promptly: (a) send to the Class G Trustee a Written Notice of such
amount and (b) deliver to the Policy Provider, or its fiscal agent, a Notice
of Avoided Payment, together with a copy of the documentation required by the
Policy with respect thereto, requesting a Policy Drawing (for payment to the
receiver, conservator, debtor-in-possession or trustee in bankruptcy and/or the
Subordination Agent for deposit into the Policy Account) in an amount equal to
the amount of relevant Avoided Payment. Such Written Notice shall also set the
date for the distribution of the proceeds of such Policy Drawing, which date
shall constitute a Special Distribution Date and shall be the earlier of the
third Business Day that immediately precedes the expiration of the Policy and
the Business Day that immediately follows the 25th day after the date of such
Written Notice. No later than 1:00 p.m. (New York City time) on the specified
Special Distribution Date, the Subordination Agent shall make the specified
Policy Drawing and, upon its receipt of the proceeds thereof, pay the amount
thereof from the Policy Account to the Class G Trustee in reinstatement of the
Avoided Payment.

          (f) Application of Policy Drawings. Notwithstanding anything to the
contrary contained in this Agreement (including, without limitation, Sections
2.4, 3.2 and 3.3 hereof), all payments received by the Subordination Agent in
respect of a Policy Drawing shall be promptly paid from the Policy Account to
the Class G Trustee for distribution to the Class G Certificateholders or the
Escrow Agent for distribution to the holders of the Class G Escrow Receipts,
as the case may be. Each Policy Drawing shall be applied to the purpose for
which it was made, including, without limitation, the application of that
portion of a Policy Drawing relating (i) to accrued interest on a Series G
Equipment Note to the payment of interest on the

                                     -64-
<PAGE>

Class G Certificates and (ii) to principal of a Series G Equipment Notes to
the reduction of the Pool Balance of the Class G Certificates.

          (g) Reduction of Outstanding Pool Balance. Promptly following each
date on which the Pool Balance of the Class G Certificates is reduced as a
result of a payment under this Agreement, the Subordination Agent shall inform
the Policy Provider of such reduction. Anything contained herein to the
contrary notwithstanding, (i) no Policy Drawing for payment in respect of the
Class G Certificates under clause (a) of this Section 3.7 shall be in excess
of Accrued Class G Interest and (ii) no Policy Drawing under clauses (b)-(d) of
this Section 3.7 shall be for an amount in excess of the outstanding Pool
Balance of the Class G Certificates plus accrued and unpaid interest thereon
at the Stated Interest Rate for the Class G Certificates. Nothing contained in
this Intercreditor Agreement shall be deemed to alter or amend the
liabilities, obligations, requirements or procedures of the Policy Provider
under the Policy and the Policy Provider shall not be obligated to make
payment except at the times and in the amounts and under the circumstances
expressly set forth in the Policy.

          (h) Resubmission of Notice for Payment. If the Policy Provider at
any time informs the Subordination Agent in accordance with the Policy that a
Notice of Nonpayment or Notice of Avoided Payment submitted by the
Subordination Agent does not satisfy the requirements of the Policy, the
Subordination Agent shall, as promptly as possible after being so informed,
submit to the Policy Provider an amended and revised Notice of Nonpayment or
Notice of Avoided Payment, as the case may be, and shall pay to the Class G
Trustee out of the Policy Account the amount received pursuant to such amended
or revised Notice of Nonpayment or Notice of Avoided Payment, as the case may
be, when received.

          Section 3.8. Subrogation. Subject to Section 3.6(b), the Policy
Provider will be subrogated to all of the rights of the holders of the Class
G-1 Certificates and Class G-2 Certificates to payment on the Class G-1
Certificates and Class G-2 Certificates to the extent of the payments made
under the Policy as set forth herein, the exercise of such subrogation rights
to be subject to the other provisions of this Agreement.

                                  ARTICLE IV

                             EXERCISE OF REMEDIES

          Section 4.1. Directions from the Controlling Party. (a) (i)
Following the occurrence and during the continuation of an Indenture Default
under any Indenture, the Controlling Party shall direct the Subordination
Agent, which in turn shall direct the Loan Trustee under such Indenture in the
exercise of remedies available to the holders of the Equipment Notes issued
pursuant to such Indenture, including, without limitation, the ability to vote
all such Equipment Notes in favor of declaring all of the unpaid principal
amount of such Equipment Notes and accrued and unpaid interest thereon to be
due and payable under, and in accordance with, the provisions of such
Indenture. Subject to the Owner Trustees' and the Owner Participants' rights,
if any, set forth in the Indentures with respect to Leased Aircraft to
purchase the Equipment Notes, if the Equipment Notes issued pursuant to any
Indenture have been Accelerated following an Indenture Default with respect
thereto, the Controlling Party may sell, assign, contract to sell or otherwise
dispose of and deliver all (but not less than all) of such

                                     -65-
<PAGE>

Equipment Notes to any Person at public or private sale, at any location at
the option of the Controlling Party, all upon such terms and conditions as it
may reasonably deem advisable in accordance with applicable law.

          (ii) Subject to the Owner Trustees' and the Owner Participants'
rights set forth in the Indentures with respect to Leased Aircraft to purchase
the Equipment Notes, and notwithstanding the foregoing, so long as any
Certificates remain Outstanding, during the period ending on the date which is
nine months after the earlier of (x) the Acceleration of the Equipment Notes
issued pursuant to any Indenture or (y) the occurrence of a Northwest
Bankruptcy Event, without the consent of each Trustee (other than the Trustee
of any Trust all of the Certificates of which are held or beneficially owned
by Northwest and/or its Affiliates), (A) no Aircraft subject to the Lien of
such Indenture or such Equipment Notes may be sold if the net proceeds from
such sale would be less than the Minimum Sale Price for such Aircraft or such
Equipment Notes, and (B) with respect to any Leased Aircraft, the amount and
payment dates of rentals payable by Northwest under the Lease for such
Aircraft may not be adjusted, if, as a result of such adjustment, the
discounted present value of all such rentals would be less than 75% of the
discounted present value of the rentals payable by Northwest under such Lease
before giving effect to such adjustment, in each case, using the weighted
average interest rate of the Equipment Notes issued pursuant to such Indenture
as the discount rate.

          (iii) At the request of the Controlling Party, the Subordination
Agent may from time to time during the continuance of an Indenture Default
(and before the occurrence of a Triggering Event) commission LTV Appraisals
with respect to the related Aircraft.

          (iv) After a Triggering Event occurs and any Equipment Note becomes
a Non-Performing Equipment Note, the Subordination Agent shall obtain LTV
Appraisals for all of the Aircraft as soon as practicable and additional LTV
Appraisals on or prior to each anniversary of the date of such initial LTV
Appraisals; provided that, if the Controlling Party reasonably objects to the
appraised value of the Aircraft shown in any such LTV Appraisals, the
Controlling Party shall have the right to obtain or cause to be obtained at
its expense substitute LTV Appraisals (including any LTV Appraisals based upon
physical inspection of the Aircraft).

          (b) To the extent permitted by applicable law, the Subordination
Agent, at the direction of the Controlling Party, shall take such actions as
it may reasonably deem most effectual to complete the sale or other
disposition of such Aircraft or Equipment Notes. In addition, in lieu of any
sale, assignment, contract to sell or other disposition, the Subordination
Agent, if so directed by and on behalf of the Controlling Party, may maintain
possession of such Equipment Notes and continue to apply monies received in
respect of such Equipment Notes in accordance with Article III hereof. In
addition, in lieu of such sale, assignment, contract to sell or other
disposition, or in lieu of such maintenance of possession, the Controlling
Party may instruct the Loan Trustee under such Indenture to foreclose on the
Lien on the related Aircraft or to take any other remedial action permitted
under such Indenture or applicable law.

          Section 4.2. Remedies Cumulative. Each and every right, power and
remedy given to the Trustees, the Primary Liquidity Providers, the Policy
Provider, the Controlling Party or the Subordination Agent specifically or
otherwise in this Agreement shall be cumulative and shall be in addition to
every other right, power and remedy herein specifically given or now or

                                     -66-
<PAGE>

hereafter existing at law, in equity or by statute, and each and every right,
power and remedy whether specifically herein given or otherwise existing may,
subject always to the terms and conditions hereof, be exercised from time to
time and as often and in such order as may be deemed expedient by any Trustee,
any Primary Liquidity Provider, the Policy Provider, the Controlling Party or
the Subordination Agent, as appropriate, and the exercise or the beginning of
the exercise of any power or remedy shall not be construed to be a waiver of
the right to exercise at the same time or thereafter any other right, power or
remedy. No delay or omission by any Trustee, any Liquidity Provider, the
Policy Provider, the Controlling Party or the Subordination Agent in the
exercise of any right, remedy or power or in the pursuit of any remedy shall
impair any such right, power or remedy or be construed to be a waiver of any
default or to be an acquiescence therein.

          Section 4.3. Discontinuance of Proceedings. In case any party to
this Agreement (including the Controlling Party in such capacity) shall have
instituted any Proceeding to enforce any right, power or remedy under this
Agreement by foreclosure, entry or otherwise, and such Proceeding shall have
been discontinued or abandoned for any reason or shall have been determined
adversely to the Person instituting such Proceeding, then and in every such
case each such party shall, subject to any determination in such Proceeding,
be restored to its former position and rights hereunder, and all rights,
remedies and powers of such party shall continue as if no such Proceeding had
been instituted.

          Section 4.4. Right of Certificateholders and Primary Liquidity
Providers to Receive Payments Not to Be Impaired. Anything in this Agreement
to the contrary notwithstanding but subject to each Trust Agreement, the right
of any Certificateholder, any Primary Liquidity Provider or the Policy
Provider, respectively, to receive payments hereunder (including, without
limitation, pursuant to Sections 2.4, 3.2 or 3.3 hereof) when due, or to
institute suit for the enforcement of any such payment on or after the
applicable Distribution Date, shall not be impaired or affected without the
consent of such Certificateholder, such Primary Liquidity Provider or the
Policy Provider, respectively.

          Section 4.5. Undertaking for Costs. In any suit for the enforcement
of any right or remedy under this Agreement or in any suit against any
Controlling Party or the Subordination Agent for any action taken or omitted
by it as Controlling Party or Subordination Agent, as the case may be, a court
in its discretion may require the filing by any party litigant in the suit of
an undertaking to pay the costs of the suit, and the court in its discretion
may assess reasonable costs, including reasonable attorneys' fees and
expenses, against any party litigant in the suit, having due regard to the
merits and good faith of the claims or defenses made by the party litigant.
The provisions of this Section do not apply to a suit instituted by the
Subordination Agent, a Liquidity Provider, the Policy Provider or a Trustee or
a suit by Certificateholders holding more than 10% of the original principal
amount of any Class of Certificates.

                                     -67-
<PAGE>

                                   ARTICLE V

                      DUTIES OF THE SUBORDINATION AGENT;
                         AGREEMENTS OF TRUSTEES, ETC.

          Section 5.1. Notice of Indenture Default or Triggering Event. (a) In
the event the Subordination Agent shall have actual knowledge of the
occurrence of an Indenture Default or a Triggering Event, as promptly as
practicable, and in any event within 10 days after obtaining knowledge
thereof, the Subordination Agent shall transmit by mail or courier to the
Rating Agencies, the Liquidity Providers, the Policy Provider and the Trustees
notice of such Indenture Default or Triggering Event, unless such Indenture
Default or Triggering Event shall have been cured or waived. For all purposes
of this Agreement, in the absence of actual knowledge on the part of a
Responsible Officer, the Subordination Agent shall not be deemed to have
knowledge of any Indenture Default or Triggering Event unless notified in
writing by Northwest, one or more Trustees, one or more Liquidity Providers,
the Policy Provider or one or more Certificateholders.

          (b) Other Notices. The Subordination Agent will furnish to each
Liquidity Provider, the Policy Provider and Trustee, promptly upon receipt
thereof, duplicates or copies of all reports, notices, requests, demands,
certificates, financial statements and other instruments furnished to the
Subordination Agent as registered holder of the Equipment Notes or otherwise
in its capacity as Subordination Agent to the extent the same shall not have
been otherwise directly distributed to such Liquidity Provider, the Policy
Provider or Trustee, as applicable, pursuant to the express provision of any
other Operative Agreement.

          Section 5.2. Indemnification. The Subordination Agent shall not be
required to take any action or refrain from taking any action under Section
5.1 (other than the first sentence thereof) or Article IV hereof unless the
Subordination Agent shall have been indemnified (to the extent and in the
manner reasonably satisfactory to the Subordination Agent) against any
liability, cost or expense (including counsel fees and expenses) which may be
incurred in connection therewith. The Subordination Agent shall not be under
any obligation to take any action under this Agreement and nothing contained
in this Agreement shall require the Subordination Agent 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
it shall have reasonable grounds for believing that repayment of such funds or
adequate indemnity against such risk or liability is not reasonably assured to
it. The Subordination Agent shall not be required to take any action under
Section 5.1 (other than the first sentence thereof) or Article IV hereof, nor
shall any other provision of this Agreement be deemed to impose a duty on the
Subordination Agent to take any action, if the Subordination Agent shall have
been advised by counsel that such action is contrary to the terms hereof or is
otherwise contrary to law.

          Section 5.3. No Duties Except as Specified in Intercreditor
Agreement. The Subordination Agent shall not have any duty or obligation to
take or refrain from taking any action under, or in connection with, this
Agreement, except as expressly provided by the terms of this Agreement; and no
implied duties or obligations shall be read into this Agreement against the
Subordination Agent. The Subordination Agent agrees that it will, in its
individual capacity

                                     -68-
<PAGE>

and at its own cost and expense (but without any right of indemnity in respect
of any such cost or expense under Section 5.2 or 7.1 hereof) promptly take
such action as may be necessary to duly discharge all Liens on any of the
Trust Accounts or any monies deposited therein which result from claims
against it in its individual capacity not related to its activities hereunder
or from a breach of its obligations that constitute willful misconduct or
gross negligence hereunder or any other Operative Agreement.

          Section 5.4. Notice from the Liquidity Providers and Trustees. If a
Responsible Officer of any Liquidity Provider, the Policy Provider or Trustee
has actual notice of an Indenture Default or a Triggering Event, such Person
shall promptly use its best efforts to give notice thereof to all other
Liquidity Providers and Trustees and to the Policy Provider and to the
Subordination Agent, provided, however, that no such Person shall have any
liability hereunder as a result of its failure to deliver any such notice.

          Section 5.5. Agreements Relating to Above-Cap Liquidity Facilities.
Each of the Subordination Agent, the Class G-1 Trustee and the Class C-1 Trustee
agrees at the request of the Class G-1 or Class C-1 Above-Cap Liquidity Provider
(as the case may be) to use reasonable efforts (consistent with applicable
legal and regulatory restrictions) to take any action that would avoid the
need for, or reduce the amount of, any payment under Section 2(d) of the ISDA
Master Agreement forming part of either the Class G-1 Above-Cap Liquidity
Facility or the Class C-1 Above-Cap Liquidity Facility; provided that any such
action would not, in the reasonable judgment of such Person, be materially
disadvantageous to it. Notwithstanding anything to the contrary contained
herein, but without limiting, and subject to, the rights of the Subordination
Agent hereunder, the obligation of the Above-Cap Liquidity Providers to make
any Above-Cap Payment or pay any Termination Amount shall be governed
exclusively by the applicable Above-Cap Liquidity Facility.

                                  ARTICLE VI

                            THE SUBORDINATION AGENT

          Section 6.1. Authorization; Acceptance of Trusts and Duties. Each of
the Class G-1 Trustee, Class G-2 Trustee, Class C-1 Trustee and Class C-2
Trustee hereby designates and appoints the Subordination Agent as the agent
and trustee of such Trustee under the applicable Liquidity Facility and
authorizes the Subordination Agent to enter into the applicable Liquidity
Facility as agent and trustee for such Trustee. Each of the Liquidity
Providers, the Trustees and the Policy Provider hereby designates and appoints
the Subordination Agent as the Subordination Agent under this Agreement.

          The Subordination Agent hereby accepts the duties hereby created and
applicable to it as the Subordination Agent and agrees to perform the same but
only upon the terms of this Agreement and agrees to receive and disburse all
monies received by it in accordance with the terms hereof. The Subordination
Agent shall not be answerable or accountable under any circumstances, except
(a) for its own willful misconduct or gross negligence or, with respect to the
handling or transfer of funds, ordinary negligence, (b) as provided in Section
2.2 or 5.3 hereof and (c) for liabilities that may result from the material
inaccuracy of any representation or warranty of the Subordination Agent made
in its individual capacity in any Operative

                                     -69-
<PAGE>

Agreement. The Subordination Agent shall not be liable for any error of
judgment made in good faith by a Responsible Officer of the Subordination
Agent, unless it is proved that the Subordination Agent was negligent in
ascertaining the pertinent facts.

          Section 6.2. Absence of Duties. The Subordination Agent shall have
no duty to see to any recording or filing of this Agreement or any other
document, or to see to the maintenance of any such recording or filing.

          Section 6.3. No Representations or Warranties as to Documents. The
Subordination Agent in its individual capacity does not make nor shall be
deemed to have made any representation or warranty as to the validity,
legality or enforceability of this Agreement or any other Operative Agreement
or as to the correctness of any statement contained in any thereof, except for
the representations and warranties of the Subordination Agent, made in its
individual capacity, under any Operative Agreement to which it is a party. The
Certificateholders, the Trustees, the Policy Provider and the Liquidity
Providers make no representation or warranty hereunder whatsoever.

          Section 6.4. No Segregation of Monies; No Interest. Any monies paid
to or retained by the Subordination Agent pursuant to any provision hereof and
not then required to be distributed to any Trustee, the Policy Provider or any
Primary Liquidity Provider as provided in Articles II and III hereof need not
be segregated in any manner except to the extent required by such Articles II
and III and by law, and the Subordination Agent shall not (except as otherwise
provided in Section 2.2 hereof) be liable for any interest thereon; provided,
however, that any payments received or applied hereunder by the Subordination
Agent shall be accounted for by the Subordination Agent so that any portion
thereof paid or applied pursuant hereto shall be identifiable as to the source
thereof.

          Section 6.5. Reliance; Agents; Advice of Counsel. The Subordination
Agent shall not incur liability to anyone in 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. As to the Pool
Balance of any Trust as of any date, the Subordination Agent may for all
purposes hereof rely on a certificate signed by any Responsible Officer of the
applicable Trustee, and such certificate shall constitute full protection to
the Subordination Agent for any action taken or omitted to be taken by it in
good faith in reliance thereon. As to any fact or matter relating to the
Liquidity Providers, the Policy Provider or the Trustees the manner of
ascertainment of which is not specifically described herein, the Subordination
Agent may for all purposes hereof rely on a certificate, signed by any
Responsible Officer of the applicable Liquidity Provider or Trustee or the
Policy Provider, as the case may be, as to such fact or matter, and such
certificate shall constitute full protection to the Subordination Agent for
any action taken or omitted to be taken by it in good faith in reliance
thereon. The Subordination Agent shall assume, and shall be fully protected in
assuming, that each of the Liquidity Providers, the Policy Provider and each
of the Trustees are authorized to enter into this Agreement and to take all
action to be taken by them pursuant to the provisions hereof, and shall not
inquire into the authorization of each of the Liquidity Providers and each of
the Trustees with respect thereto. In the administration of the trusts
hereunder, the Subordination Agent may execute any of the trusts or powers
hereof and perform its powers and duties hereunder directly or through agents
or attorneys and may consult

                                     -70-
<PAGE>

with counsel, accountants and other skilled persons to be selected and
retained by it, and the Subordination Agent shall not be liable for the acts
or omissions of any agent appointed with due care or for anything done,
suffered or omitted in good faith by it in accordance with the advice or
written opinion of any such counsel, accountants or other skilled persons.

          Section 6.6. Capacity in Which Acting. The Subordination Agent acts
hereunder solely as agent and trustee herein and not in its individual
capacity, except as otherwise expressly provided in the Operative Agreements.

          Section 6.7. Compensation. The Subordination Agent shall be entitled
to reasonable compensation, including expenses and disbursements, for all
services rendered hereunder and shall have a priority claim to the extent set
forth in Article III hereof on all monies collected hereunder for the payment
of such compensation, to the extent that such compensation shall not be paid
by others. The Subordination Agent agrees that it shall have no right against
any Trustee or Liquidity Provider or the Policy Provider for any fee as
compensation for its services as agent under this Agreement. The provisions of
this Section 6.7 shall survive the termination of this Agreement.

          Section 6.8. May Become Certificateholder. The institution acting as
Subordination Agent hereunder may become a Certificateholder and have all
rights and benefits of a Certificateholder to the same extent as if it were
not the institution acting as the Subordination Agent.

          Section 6.9. Subordination Agent Required; Eligibility. There shall
at all times be a Subordination Agent hereunder which shall be a corporation
organized and doing business under the laws of the United States of America or
of any State or the District of Columbia having a combined capital and surplus
of at least $100,000,000 (or the obligations of which, whether now in
existence or hereafter incurred, are fully and unconditionally guaranteed by a
corporation organized and doing business under the laws of the United States,
any State thereof or of the District of Columbia and having a combined capital
and surplus of at least $100,000,000), if there is such an institution willing
and able to perform the duties of the Subordination Agent hereunder upon
reasonable or customary terms. Such corporation shall be a citizen of the
United States and shall be authorized under the laws of the United States or
any State thereof or of the District of Columbia to exercise corporate trust
powers and shall be subject to supervision or examination by federal, state or
District of Columbia authorities. If such corporation publishes reports of
condition at least annually, pursuant to law or to the requirements of any of
the aforesaid supervising or examining authorities, then, for the purposes of
this Section 6.9, the combined capital and surplus of such corporation shall
be deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published.

          In case at any time the Subordination Agent shall cease to be
eligible in accordance with the provisions of this Section, the Subordination
Agent shall resign immediately in the manner and with the effect specified in
Section 8.1.

          Section 6.10. Money to Be Held in Trust. All Equipment Notes, monies
and other property deposited with or held by the Subordination Agent pursuant
to this Agreement shall be held in trust for the benefit of the parties
entitled to such Equipment Notes, monies and

                                     -71-
<PAGE>

other property. All such Equipment Notes, monies or other property shall be
held in the Trust Department of the institution acting as Subordination Agent
hereunder.

                                 ARTICLE VII

                    INDEMNIFICATION OF SUBORDINATION AGENT

          Section 7.1. Scope of Indemnification. The Subordination Agent shall
be indemnified hereunder to the extent and in the manner described in Section
7(c) of the Participation Agreements and Section 7 of the Note Purchase
Agreement. The indemnities contained in such Sections of such agreements shall
survive the termination of this Agreement.

                                 ARTICLE VIII

                         SUCCESSOR SUBORDINATION AGENT

          Section 8.1. Replacement of Subordination Agent; Appointment of
Successor. The Subordination Agent may resign at any time by so notifying the
Trustees, the Policy Provider and the Liquidity Providers. The Controlling
Party may remove the Subordination Agent for cause by so notifying the
Subordination Agent and may appoint a successor Subordination Agent. The
Controlling Party shall remove the Subordination Agent if:

               (1) the Subordination Agent fails to comply with Section 6.9
          hereof;

               (2) the Subordination Agent is adjudged bankrupt or insolvent;

               (3) a receiver or other public officer takes charge of the
          Subordination Agent or its property; or

               (4) the Subordination Agent otherwise becomes incapable of
          acting.

          If the Subordination Agent resigns or is removed or if a vacancy
exists in the office of Subordination Agent for any reason (the Subordination
Agent in such event being referred to herein as the retiring Subordination
Agent), the Controlling Party in consultation with Northwest shall promptly
appoint a successor Subordination Agent.

          Any corporation into which the Subordination 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 Subordination Agent
shall be a party, or any corporation to which substantially all the corporate
trust business of the Subordination Agent may be transferred, shall, subject
to the terms of Section 6.9 hereof, be the Subordination Agent hereunder and
under the other Operative Agreements to which the Subordination Agent is a
party without further act, except that such Person shall give prompt
subsequent notice of such transaction to the Liquidity Provider and each
Trustee.

          A successor Subordination Agent shall deliver (x) a written
acceptance of its appointment as Subordination Agent hereunder to the retiring
Subordination Agent and (y) a written assumption of its obligations hereunder
and under each Liquidity Facility, to each party

                                     -72-
<PAGE>

hereto upon which the resignation or removal of the retiring Subordination
Agent shall become effective, and the successor Subordination Agent shall have
all the rights, powers and duties of the Subordination Agent under this
Agreement. The successor Subordination Agent shall send a written notice of
its succession to the Liquidity Providers, the Policy Provider and the
Trustees. The retiring Subordination Agent shall promptly transfer its rights
under each of the Liquidity Facilities and all of the property held by it as
Subordination Agent to the successor Subordination Agent.

          If a successor Subordination Agent does not take office within 60
days after the retiring Subordination Agent resigns or is removed, the
retiring Subordination Agent or one or more of the Trustees may petition any
court of competent jurisdiction for the appointment of a successor
Subordination Agent.

          If the Subordination Agent fails to comply with Section 6.9 hereof
(to the extent applicable), one or more of the Trustees or one or more of the
Liquidity Providers, the Policy Provider or Northwest may petition any court
of competent jurisdiction for the removal of the Subordination Agent and the
appointment of a successor Subordination Agent.

          Notwithstanding the foregoing, no resignation or removal of the
Subordination Agent shall be effective unless and until a successor has been
appointed. No appointment of a successor Subordination Agent shall be
effective unless and until the Rating Agencies shall have delivered a Ratings
Confirmation.

                                  ARTICLE IX

                          SUPPLEMENTS AND AMENDMENTS

          Section 9.1. Amendments, Waivers, Etc. (a) This Agreement may not be
supplemented, amended or modified without the consent of each Trustee (acting,
except in the case of any amendment pursuant to Section 3.6(e)(v)(y) hereof
with respect to any Replacement Primary Liquidity Facility, any amendment
pursuant to Section 3.6(c)(ii) hereof with respect to any Replacement Above-Cap
Liquidity Facility or any amendment contemplated by the last sentence of this
Section 9.1(a), with the consent of holders of Certificates of the related
Class evidencing interests in the related Trust aggregating not less than a
majority in interest in such Trust or as otherwise authorized pursuant to the
relevant Trust Agreement), the Subordination Agent, the Policy Provider and
each Liquidity Provider; provided, however, that this Agreement may be
supplemented, amended or modified without the consent of any Trustee if such
supplement, amendment or modification (i) is in accordance with Section
9.1(d), 9.1(e) or 9.1(f) hereof or (ii) cures an ambiguity or inconsistency or
does not materially adversely affect such Trustee or the holders of the
related Class of Certificates; provided further, however, that, if such
supplement, amendment or modification (A) would (x) directly or indirectly
modify or supersede, or otherwise conflict with, Section 2.2(b), Section
3.6(e), Section 3.6(f) (other than the last sentence thereof), the last
sentence of this Section 9.1(a) or this proviso (collectively, the "Northwest
Provisions") or (y) otherwise adversely affect the interests of a potential
Replacement Primary Liquidity Provider or of Northwest with respect to its
ability to replace any Primary Liquidity Facility or with respect to its
payment obligations under any Leased Aircraft Indenture, Owned Aircraft
Indenture or Operative Agreement or, (B) is made pursuant to the last

                                     -73-
<PAGE>

sentence of this Section 9.1(a), then such supplement, amendment or
modification shall not be effective without the additional written consent of
Northwest. Notwithstanding the foregoing, without the consent of each
Certificateholder, the Policy Provider and each Primary Liquidity Provider, no
supplement, amendment or modification of this Agreement may (i) reduce the
percentage of the interest in any Trust evidenced by the Certificates issued
by such Trust necessary to consent to modify or amend any provision of this
Agreement or to waive compliance therewith or (ii) except as provided in
Section 9.1(d) or 9.1(e) or the last sentence of this Section 9.1(a), modify
Sections 2.4, 3.2 or 3.3 hereof, relating to the distribution of monies
received by the Subordination Agent hereunder from the Equipment Notes or
pursuant to the Liquidity Facilities or any Policy. Notwithstanding any
provision to the contrary contained herein, any modification to (x) Section
2.4(b), 3.2 or 3.3 hereof which would change the priority of payments to the
Above-Cap Reserve Account (other than a change in priority to provide for
distributions to the holders of Class E Certificates being made prior to the
application of any amount required to fund the Above-Cap Reserve Account
pursuant to clause "eleventh" of Section 2.4(b), clause "twelfth" of Section
3.2 and clause "thirteen" of Section 3.3 in connection with Section 9.1(f)
hereof) or (y) any provision herein that would materially adversely affect the
rights or materially increase the obligations of any Above-Cap Liquidity
Provider under its Above-Cap Liquidity Facility shall also require the consent
of the Above-Cap Liquidity Providers (or the applicable Above-Cap Liquidity
Provider, in the case of clause (y) above). Nothing contained in this Section
shall require the consent of a Trustee at any time following the payment of
Final Distributions with respect to the related Class of Certificates. If any
Replacement Primary Liquidity Facility for any Primary Liquidity Facility in
accordance with Section 3.6(e) hereof is to be comprised of more than one
instrument as contemplated by the definition of the term "Replacement Primary
Liquidity Facility", then each of the parties hereto agrees to amend this
Agreement to incorporate appropriate mechanics for multiple Primary Liquidity
Facilities for a Trust.

          (b) In the event that the Subordination Agent, as the registered
holder of any Equipment Notes, receives a request for its consent to any
amendment, modification, consent or waiver under such Equipment Notes, the
Indenture pursuant to which such Equipment Notes were issued, or the related
Lease, Participation Agreement or other related document, (i) if no Indenture
Default shall have occurred and be continuing with respect to such Indenture,
the Subordination Agent shall request directions with respect to each Series
of such Equipment Notes from the Trustee of the Trust which holds such
Equipment Notes and shall vote or consent in accordance with the directions of
such Trustee, except that so long as the Final Distribution on the Class G-1
and Class G-2 Certificates has not been made or any Policy Provider Obligations
remain outstanding and no Policy Provider Default shall have occurred and be
continuing, the Subordination Agent shall request directions from the Policy
Provider rather than the Class G-1 Trustee with respect to the Class G-1
Equipment Notes held in the Class G-1 Trust, or the Class G-2 Trustee with
respect to the Class G-2 Equipment Notes held in the Class G-2 Trust, and (ii)
if any Indenture Default (which, in the case of any Indenture pertaining to a
Leased Aircraft, has not been cured by the applicable Owner Trustee or the
applicable Owner Participant, if applicable, pursuant to Section 4.03 of such
Indenture) shall have occurred and be continuing with respect to such
Indenture, the Subordination Agent will exercise its voting rights as directed
by the Controlling Party, subject to Sections 4.1 and 4.4 hereof; provided
that no such amendment, modification or waiver shall, without the consent of
each Primary Liquidity Provider and the Policy Provider, (i) reduce the amount
of rent, supplemental rent, stipulated loss

                                     -74-
<PAGE>

value or termination value payable by Northwest under any Lease or reduce the
amount of principal or interest payable by Northwest under any Equipment Note
issued under any Indenture in respect of an Owned Aircraft (other than in
connection with a reoptimization relating to a Sale/Leaseback transaction for
a Selected Aircraft), (ii) create any Lien with respect to any Collateral or
Indenture Estate prior to or pari passu with the Lien of the related Indenture
or deprive any holder of an Equipment Note issued under such Indenture of the
benefit of the Lien of such Indenture upon the related Collateral or Indenture
Estate or (iii) reduce the percentage in principal amount of the outstanding
Equipment Notes issued under any Indenture required to take or approve any
action under such Indenture.

          (c) Notwithstanding any provision to the contrary contained herein,
so long as Northwest and/or its Affiliates holds or beneficially owns a
majority of the Class D Certificates or otherwise controls the actions of the
Class D Trustee, any consent or approval of the Class D Trustee or any Class D
Certificateholder otherwise required in accordance with the foregoing
provisions shall not be required.

          (d) If any Class D Certificates are issued, such Class D
Certificates shall be subordinated to the Class G-1, Class G-2, Class C-1 and
Class C-2 Certificates in the manner set forth in this Agreement and this
Agreement shall be amended in accordance with this Agreement and Section 11 of
the Note Purchase Agreement by written agreement of the Trustees and the
Subordination Agent to give effect to the issuance of any Class D
Certificates, which amendment shall include, without limitation, provision for
the Class D Trust Trustee to be added as a party to this Agreement and for the
definition of "Stated Interest Rate" to be revised, as appropriate, to reflect
the issuance of the Class D Certificates (and the subordination thereof). No
such amendment shall materially adversely affect any Trustee or the Policy
Provider.

          (e) Pursuant to the Indentures for the Owned Aircraft for Aircraft
other than Selected Aircraft, if Northwest elects to redeem only the Series D
Equipment Notes outstanding under such Indentures pursuant to the second
paragraph of Section 2.11 thereof, Northwest may be required to simultaneously
issue new Series D Equipment Notes (the "New Series D Equipment Notes")
pursuant to the terms of such second paragraph. If New Series D Equipment
Notes are issued, such Notes are required to be held by a new pass through
trust (the "New Class D Trust") subject to the same subordination provisions
as the Class D Trust. In connection with the issuance of new class D pass
through certificates by the New Class D Trust (the "New Class D
Certificates"), this Agreement shall be amended by written agreement by the
Trustees and the Subordination Agent to provide for the subordination of the
New Class D Certificates to the Class G-1, Class G-2, Class C-1 and Class C-2
Certificates in the same manner as the Class D Certificates. No such amendment
shall materially adversely affect any Trustee. The amendment to this Agreement
to give effect to the issuance of any New Class D Certificate shall include,
without limitation:

               (i) the trustee of the New Class D Trust shall be added as a
          party to this Agreement and assuming Final Distributions have been
          paid on the Class D Certificates, the Class D Trustee shall cease to
          be a party to this Agreement;

               (ii) the definitions of "Cash Collateral Account,"
          "Certificate," "Class," "Equipment Notes," "Final Legal Distribution
          Date," "LTV Ratio," "Stated Interest Rate,"

                                     -75-
<PAGE>

          "Trust," "Trust Agreement," and "Controlling Party" shall be
          revised, as appropriate, to reflect the issuance of the New Class D
          Certificates (and the subordination thereof); and

               (iii) the provisions of this Agreement governing payments with
          respect to Certificates and related notices, including, without
          limitation, Sections 2.4, 3.1, 3.2, 3.3 and 3.6(e), shall be revised
          to provide for distributions on the New Class D Certificates after
          payment of all relevant distributions on the Class C-1 and Class C-2
          Certificates and in the same priority as the Class D Certificates.

          (f) If any Class E Certificate are issued, this Agreement shall be
amended by written agreement by the Trustees and the Subordination Agent to
provide for the subordination of such Class E Certificate to the Class G-1,
Class G-2, Class C-1, Class C-2 and Class D Certificates (or New Class D
Certificates) substantially in the same manner as the Class C-1 and Class C-2
Certificates are subordinated hereunder to the Class G-1 and Class G-2
Certificates and the Class D Certificates (or New Class D Certificates) are
subordinated hereunder to the Class C-1 and Class C-2 Certificates . No such
amendment shall materially adversely affect any Trustee. The amendment to this
Agreement to give effect to the issuance of any Class E Certificate shall
include, without limitation:

               (i) the trustee of the Class E Trust shall be added as a party
          to this Agreement;

               (ii) the definitions of "Cash Collateral Account,"
          "Certificate," "Class," "Equipment Notes," "Final Legal Distribution
          Date," "LTV Ratio," "Stated Interest Rate," "Trust," "Trust
          Agreement," and "Controlling Party" shall be revised, as
          appropriate, to reflect the issuance of the Class E Certificates
          (and the subordination thereof); and

               (iii) the provisions of this Agreement governing payments with
          respect to Certificates and related notices, including, without
          limitation, Sections 2.4, 3.1, 3.2, 3.3 and 3.6(e), shall be revised
          to provide for distributions on the Class E Certificates after
          payment of all relevant distributions on the Class C-1 and Class C-2
          Certificates and Class D Certificates (or New Class D Certificates).
          If, with respect to any Aircraft, Series E Equipment Notes are
          issued to any Person other than the Class E Trust, this Agreement
          shall be amended by written agreement of the Trustees and the
          Subordination Agent to (i) provide for each holder of a Series E
          Equipment Note to be bound by the provisions of Section 2.6(a) so
          that the Controlling Party, among other things, shall be entitled to
          direct the Loan Trustee as provided therein (and such Series E
          Equipment Notes shall make effective provision therefor so as to
          bind each holder thereof to such provisions of Section 2.6(a)) and
          (ii) to revise the definitions of "Controlling Party" and "Equipment
          Notes", as appropriate, to reflect the issuance of the Series E
          Equipment Notes (and the prior rights, as against the holders of
          such Series E Equipment Notes, of the Class G-1, Class G-2, Class C-1,
          Class C-2 and Class D Trustee (or the trustee of the New Class D
          Trust) to be such "Controlling Party"). No such amendment shall
          materially adversely affect any Trustee.

          Each of the Liquidity Providers and the Policy Providers hereby
agree and confirm that (i) it shall be deemed to consent to the issuance of
any Class D Certificates, New

                                     -76-
<PAGE>

Class D Certificates, Class E Certificates, Series D Equipment Notes, New
Series D Equipment Notes, Series E Equipment Notes and the amendments to this
Agreement made in connection therewith in accordance with this Section 9.1 and
(ii) any such issuance and amendment shall not affect any of its respective
obligations under its Liquidity Facilities or Policies, as applicable. Each
Policy Provider agrees and confirms that (i) its consent shall not be required
in connection with a transfer of the obligations of an Above-Cap Liquidity
Provider or the replacement of an Above-Cap Liquidity Facility under the
circumstances specified in Part 5(i) of the Schedule to the ISDA Master
Agreement forming a part of each Above-Cap Liquidity Facility and (ii) any such
transfer or replacement shall not affect any of its obligations under its
Policy.

          The parties hereto agree that no amendments shall be made to this
Agreement pursuant to Section 9.1(d), 9.1(e) or 9.1(f) unless each Rating
Agency shall have provided written confirmation that the issuance of the Class
D Certificates, the New Class D Certificates or the Class E Certificates, as
the case may be, will not cause the rating then in effect by such Rating
Agency for any Class of Certificates (without regard, in the case of the Class
G-1 Certificate or the Class G-2 Certificates, to the Policies) to be withdrawn,
suspended or downgraded.

          Section 9.2. Subordination Agent Protected. If, in the reasonable
opinion of the institution acting as the Subordination Agent hereunder, any
document required to be executed pursuant to the terms of Section 9.1 affects
any right, duty, immunity or indemnity with respect to it under this Agreement
or any Liquidity Facility, the Subordination Agent may in its discretion
decline to execute such document.

          Section 9.3. Effect of Supplemental Agreements. Upon the execution
of any amendment or supplement hereto pursuant to the provisions hereof, this
Agreement shall be and be deemed to be modified and amended in accordance
therewith and the respective rights, limitations of rights, obligations,
duties and immunities under this Agreement of the parties hereto and
beneficiaries hereof shall thereafter be determined, exercised and enforced
hereunder subject in all respects to such modifications and amendments, and
all the terms and conditions of any such supplemental agreement shall be and
be deemed to be part of the terms and conditions of this Agreement for any and
all purposes. In executing or accepting any supplemental agreement permitted
by this Article IX, the Subordination Agent shall be entitled to receive, and
shall be fully protected in relying upon, an opinion of counsel stating that
the execution of such supplemental agreement is authorized or permitted by
this Agreement.

          Section 9.4. Notice to Rating Agencies and the Policy Provider.
Promptly following its receipt of each amendment, consent, modification,
supplement or waiver contemplated by this Article IX, the Subordination Agent
shall send a copy thereof to each Rating Agency and the Policy Provider.

                                  ARTICLE X

                                 MISCELLANEOUS

          Section 10.1. Termination of Intercreditor Agreement. Following
payment of Final Distributions with respect to each Class of Certificates and
the payment in full of all

                                     -77-
<PAGE>

Liquidity Obligations to the Liquidity Providers and all Policy Provider
Obligations to the Policy Provider (provided that there shall then be no other
amounts due to the Certificateholders, the Trustees, the Liquidity Providers,
the Policy Provider with respect to the Primary Liquidity Facility and the
Subordination Agent hereunder or under the Trust Agreements, and that the
commitment of (i) the Liquidity Providers under the Liquidity Facilities and
(ii) the Policy Provider under the Policies shall have expired or been
terminated), this Agreement and the trusts created hereby shall terminate and
this Agreement shall be of no further force or effect. Except as aforesaid or
otherwise provided, this Agreement and the trusts created hereby shall
continue in full force and effect in accordance with the terms hereof.

          Section 10.2. Intercreditor Agreement for Benefit of Trustees,
Liquidity Providers, Policy Provider and Subordination Agent. Subject to the
second sentence of Section 10.6 and the provisions of Section 4.4, nothing in
this Agreement, whether express or implied, shall be construed to give to any
Person other than the Trustees, the Liquidity Providers, the Policy Provider
and the Subordination Agent any legal or equitable right, remedy or claim
under or in respect of this Agreement.

          Section 10.3. Notices. Unless otherwise expressly specified or
permitted by the terms hereof, all notices, requests, demands, authorizations,
directions, consents, waivers or documents provided or permitted by this
Agreement to be made, given, furnished or filed shall be in writing, mailed by
certified mail, postage prepaid, or by confirmed telecopy and

            (i)  if to the Subordination Agent,
                  addressed to it at its office at:

                 c/o State Street Bank and Trust Company
                 2 Avenue de Lafayette
                 Boston, Massachusetts  02111

                 Attention:  Corporate Trust Department
                 Fax:  (617) 988-9514

           (ii)  if to the Trustee, addressed to it at its office at:

                 State Street Bank and Trust Company of
                 Connecticut, National Association
                 225 Asylum Street, Goodwin Square
                 Hartford, Connecticut 06103

                 Attention:  Corporate/Muni Department
                 Fax:  (860) 244-1889

          (iii)  If to the Policy Provider, addressed to it at its office at:

                                     -78-
<PAGE>

                 MBIA Insurance Corporation
                 113 King Street
                 Armonk, New York  10504

                 Attention:  Insured Portfolio Management, Structured
                 Fax:  (917) 765-3163

          (iv)  if to the initial Primary Liquidity Provider,
                addressed to it at its office at:

                Westdeutsche Landesbank Girozentrale, New York Branch
                1211 Avenue of the Americas
                New York, New York  10036

                Attention:  Suzy Kong
                Fax:  (212) 302-7946
                Telephone: (212) 597-1319

                With a copy to:

                Westdeutsche Landesbank Girozentrale, New York Branch
                1211 Avenue of the Americas
                New York, New York  10036

                Attention:  Brigitte Thieme
                Fax:  (212) 597-5419
                Telephone:  (212) 852-6111

          (v)   if to the initial Above-Cap Liquidity Provider,
                addressed to it at its office at:

                      Credit Suisse First Boston International
                      One Cabot Square
                      London, E14 4Q3
                      England

                Attention:  (a) Head of Credit Risk Management
                            (b) Managing Director - Operations Department
                            (c) Managing Director - Legal Department
                Fax:  (44) (20) 7888-2028
                Telephone: (44) (20) 7888-2686

                                     -79-
<PAGE>

           (v)  If to MBIA Insurance Corporation, addressed to its office at:

                MBIA Insurance Corporation
                113 King Street
                Armonk, NY  10504

                Attention:  Insured Portfolio Management, Structured Finance
                Fax:  (914) 765-3163
                Telephone: (914) 273-4949

Whenever any notice in writing is required to be given by any Trustee or
Liquidity Provider or the Policy Provider or the Subordination Agent to any of
the other of them, such notice shall be deemed given and such requirement
satisfied when such notice is received, if such notice is mailed by certified
mail, postage prepaid or by courier service or if such notice is sent by
confirmed telecopy addressed as provided above. Any party hereto may change
the address to which notices to such party will be sent by giving notice of
such change to the other parties to this Agreement.

          Section 10.4. Severability. Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate
or render unenforceable such provision in any other jurisdiction.

          Section 10.5. No Oral Modifications or Continuing Waivers. No terms
or provisions of this Agreement may be changed, waived, discharged or
terminated orally, but only by an instrument in writing signed by the party or
other Person against whom enforcement of the change, waiver, discharge or
termination is sought and any other party or other Person whose consent is
required pursuant to this Agreement and any waiver of the terms hereof shall
be effective only in the specific instance and for the specific purpose given.

          Section 10.6. Successors and Assigns. All covenants and agreements
contained herein shall be binding upon, and inure to the benefit of, each of
the parties hereto and the successors and assigns of each, all as herein
provided. In addition, the Northwest Provision shall inure to the benefit of
Northwest and its successors and permitted assigns and Northwest has hereby
constituted and agreed to be an express third party beneficiary of the
Northwest Provision.

          Section 10.7. Headings. The headings of the various Articles and
Sections herein and in the table of contents hereto are for convenience of
reference only and shall not define or limit any of the terms or provisions
hereof.

          Section 10.8. Counterpart Form. This Agreement may be executed by
the parties hereto in separate counterparts, each of which when so executed
and delivered shall be an original, but all such counterparts shall together
constitute but one and the same agreement.

                                     -80-
<PAGE>

          Section 10.9. Subordination. (a) As between the Liquidity Providers
and the Policy Provider, on the one hand, and the Trustees and the
Certificateholders, on the other hand, and as between and among the Trustees
and the related Certificateholders of all Classes of Certificates, this
Agreement shall be a subordination agreement for purposes of Section 510 of
the United States Bankruptcy Code, as amended from time to time.

          (b) Notwithstanding the provisions of this Agreement, if prior to
the payment in full to the Liquidity Providers of all Liquidity Obligations
then due and payable and (ii) Policy Provider of all Policy Provider
Obligations, any party hereto shall have received any payment or distribution
in respect of Equipment Notes or any other amount under the Indentures or
other Operative Agreements which, had the subordination provisions of this
Agreement been properly applied to such payment, distribution or other amount,
would not have been distributed to such Person, then such payment,
distribution or other amount shall be received and held in trust by such
Person and paid over or delivered to the Subordination Agent for application
as provided herein.

          (c) If any Trustee, any Liquidity Provider, the Subordination Agent
or the Policy Provider receives any payment in respect of any obligations
owing hereunder (or, in the case of the Liquidity Providers or the Policy
Provider, in respect of the Liquidity Obligations or the Policy Provider
Obligations, as the case may be) which is subsequently invalidated, declared
preferential, set aside and/or required to be repaid to a trustee, receiver or
other party, then, to the extent of such payment, such obligations (or, in the
case of the Liquidity Providers or the Policy Provider, such Liquidity
Obligations or the Policy Provider Obligations, as the case may be) intended
to be satisfied shall be revived and continue in full force and effect as if
such payment had not been received.

          (d) The Trustees (on behalf of themselves and the holders of
Certificates), the Liquidity Providers, the Subordination Agent and the Policy
Provider confirm that the payment priorities specified in Sections 2.4, 3.2
and 3.3 shall apply in all circumstances, notwithstanding the fact that the
obligations owed to the Trustees and the holders of Certificates are secured
by certain assets and the Liquidity Obligations and the Policy Provider
Obligations may not be so secured. The Trustees expressly agree (on behalf of
themselves and the holders of Certificates) not to assert priority over the
holders of Liquidity Obligations or Policy Provider Obligations due to their
status as secured creditors in any bankruptcy, insolvency or other legal
proceeding.

          (e) Each of the Trustees (on behalf of themselves and the holders of
Certificates), the Primary Liquidity Providers, the Policy Provider and the
Subordination Agent may take any of the following actions without impairing
its rights under this Agreement:

          (i) obtain a lien on any property to secure any amounts owing to it
     hereunder, including, in the case of the Primary Liquidity Providers and
     the Policy Provider, the Primary Liquidity Obligations or the Policy
     Provider Obligations, as the case may be,

          (ii) obtain the primary or secondary obligation of any other obligor
     with respect to any amounts owing to it hereunder, including, in the case
     of the Primary Liquidity Providers and the Policy Provider, any of the
     Liquidity Obligations or the Policy Provider Obligations, as the case may
     be,

                                     -81-
<PAGE>

          (iii) renew, extend, increase, alter or exchange any amounts owing
     to it hereunder, including, in the case of the Primary Liquidity
     Providers and the Policy Provider, any of the Primary Liquidity
     Obligations or the Policy Provider Obligations, as the case may be, or
     release or compromise any obligation of any obligor with respect thereto,

          (iv) refrain from exercising any right or remedy, or delay in
     exercising such right or remedy, which it may have, or

          (v) take any other action which might discharge a subordinated party
     or a surety under applicable law;

provided, however, that the taking of any such actions by any of the Trustees,
the Liquidity Providers, the Policy Provider or the Subordination Agent shall
not prejudice the rights or adversely affect the obligations of any other
party under this Agreement.

          Section 10.10. Governing Law. THIS AGREEMENT SHALL IN ALL RESPECTS
BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW
YORK, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE.

          Section 10.11. Submission to Jurisdiction; Waiver of Jury Trial;
Waiver of Immunity. (a) Each of the parties hereto hereby irrevocably and
unconditionally:

          (i) submits for itself and its property in any legal action or
     proceeding relating to this Agreement or any other Operative Agreement,
     or for recognition and enforcement of any judgment in respect hereof or
     thereof, to the nonexclusive general jurisdiction of the courts of the
     State of New York, the courts of the United States of America for the
     Southern District of New York, and the appellate courts from any thereof;

          (ii) consents that any such action or proceeding may be brought in
     such courts, and waives any objection that it may now or hereafter have
     that the venue of any such action or proceeding was brought in an
     inconvenient court and agrees not to plead or claim the same;

          (iii) agrees that service of process in any such action or
     proceeding may be effected by mailing a copy thereof by registered or
     certified mail (or any substantially similar form of mail), postage
     prepaid, to each party hereto at its address set forth in Section 10.3
     hereof, or at such other address of which the other parties shall have
     been notified pursuant thereto; and

          (iv) agrees that nothing herein shall affect the right to effect
     service of process in any other manner permitted by law or shall limit
     the right to sue in any other jurisdiction.

          (b) EACH OF THE PARTIES HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE
RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING
OUT OF THIS AGREEMENT OR ANY DEALINGS

                                     -82-
<PAGE>

BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT AND THE
RELATIONSHIP THAT IS BEING ESTABLISHED, INCLUDING, WITHOUT LIMITATION,
CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW
AND STATUTORY CLAIMS. EACH OF THE PARTIES WARRANTS AND REPRESENTS THAT IT HAS
REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT IT KNOWINGLY AND
VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH SUCH
LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, AND CANNOT BE MODIFIED EITHER
ORALLY OR IN WRITING, AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT
AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT.

          (c) Each Liquidity Provider hereby waives any immunity it may have
from the jurisdiction of the courts of the United States or of any state
thereof and waives any immunity any of its properties located in the United
States may have from attachment or execution upon a judgment entered by any
such court under the United States Foreign Sovereign Immunities Act of 1976 or
any similar successor legislation.

                                     -83-
<PAGE>

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed by their respective officers thereunto duly authorized, as of the day
and year first above written, and acknowledge that this Agreement has been
made and delivered in the City of New York, and this Agreement has become
effective only upon such execution and delivery.

                          STATE STREET BANK AND TRUST
                          COMPANY OF CONNECTICUT, NATIONAL ASSOCIATION,
                          not in its individual capacity but
                          solely as Trustee for each of the Trusts

                          By:    /s/ Kenneth R. Ring
                             -------------------------------------
                             Name:   Kenneth R. Ring
                             Title:  Assistant Vice President

                          WESTDEUTSCHE LANDESBANK GIROZENTRALE,
                          NEW YORK BRANCH, as Primary Liquidity
                          Provider

                          By:---------------------------------------
                             Name:
                             Title:

                          By:---------------------------------------
                             Name:
                             Title:

                          CREDIT SUISSE FIRST BOSTON
                          INTERNATIONAL, as the Class G-1 Above-Cap
                          Liquidity Provider and the Class C-2 Above-Cap
                          Liquidity Provider

                          By:-------------------------------------
                             Name:
                             Title:

                                     -84-
<PAGE>

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed by their respective officers thereunto duly authorized, as of the day
and year first above written, and acknowledge that this Agreement has been
made and delivered in the City of New York, and this Agreement has become
effective only upon such execution and delivery.

                          STATE STREET BANK AND TRUST
                          COMPANY OF CONNECTICUT, NATIONAL ASSOCIATION,
                          not in its individual capacity but
                          solely as Trustee for each of the Trusts

                          By:-------------------------------------
                             Name:
                             Title:

                          WESTDEUTSCHE LANDESBANK GIROZENTRALE,
                          NEW YORK BRANCH, as Primary Liquidity
                          Provider

                          By:   /s/ Brigitte Thieme
                             ---------------------------------------
                             Name:   Brigitte Thieme
                             Title:  Managing Director

                          By:  /s/ Alfred Heynen
                             ---------------------------------------
                             Name:   Alfred Heynen
                             Title:  Associate Director

                          CREDIT SUISSE FIRST BOSTON
                          INTERNATIONAL, as the Class G-1 Above-Cap
                          Liquidity Provider and the Class C-2 Above-Cap
                          Liquidity Provider

                          By:-------------------------------------
                             Name:
                             Title:

                                     -84-

<PAGE>

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed by their respective officers thereunto duly authorized, as of the day
and year first above written, and acknowledge that this Agreement has been
made and delivered in the City of New York, and this Agreement has become
effective only upon such execution and delivery.

                          STATE STREET BANK AND TRUST
                          COMPANY OF CONNECTICUT, NATIONAL ASSOCIATION,
                          not in its individual capacity but
                          solely as Trustee for each of the Trusts

                          By:-------------------------------------
                             Name:
                             Title:

                          WESTDEUTSCHE LANDESBANK GIROZENTRALE,
                          NEW YORK BRANCH, as Primary Liquidity
                          Provider

                          By:---------------------------------------
                             Name:
                             Title:

                          By:---------------------------------------
                             Name:
                             Title:

                          CREDIT SUISSE FIRST BOSOTON
                          INTERNATIONAL, as the Class G-1 Above-Cap
                          Liquidity Provider and the Class C-2 Above-Cap
                          Liquidity Provider

                          By:     /s/ Lucy Allen
                             -------------------------------------
                             Name:   Lucy Allen
                             Title:  Authorized Signatory

                          By:    /s/ Keith McNally
                             -------------------------------------
                             Name:   Keith McNally
                             Title:  Authorized Signatory

                                     -84-

<PAGE>

                          STATE STREET BANK AND TRUST COMPANY, not in its
                          individual capacity except as expressly set
                          forth herein but solely as Subordination Agent
                          and trustee

                          By:    /s/ Kenneth R. Ring
                             -------------------------------------
                             Name:   Kenneth R. Ring
                             Title:  Assistant Vice President

                          MBIA INSURANCE CORPORATION, as Policy Provider

                          By:-------------------------------------
                             Name:
                             Title:

                                     -85-
<PAGE>

                          STATE STREET BANK AND TRUST COMPANY, not in its
                          individual capacity except as expressly set
                          forth herein but solely as Subordination Agent
                          and trustee

                          By:-------------------------------------
                             Name:
                             Title:

                          MBIA INSURANCE CORPORATION, as Policy Provider

                          By:   /s/  Kenneth L. Degen
                             -------------------------------------
                             Name:   Kenneth L. Degen
                             Title:  Managing Director

                                     -85-
<PAGE>

                                SCHEDULE 2.2(b)

         Upon the funding of any Above-Cap Account or Above-Cap Reserve
Account or the maturity or redemption of any investment of funds in any such
account (such funds, the "Funds"), Credit Suisse First Boston International
shall send a notice to the Subordination Agent containing a list of Eligible
Investments (the "Specified Investments") which shall contain at least 10
investments in open market commercial paper of corporations incorporated under
the laws of the United States of America or any state thereof.

         Following receipt of such notice, the Subordination Agent shall use
its best efforts to invest or reinvest the Funds in any Specified Investment.
If no Specified Investment is then available, the Subordination Agent shall
invest or reinvest the Funds in any other Eligible Investment selected by the
Subordination Agent.

         Following such investment or reinvestment of the Funds by the
Subordination Agent in any Specified Investment or other Eligible Investment,
the Subordination Agent shall deliver a written statement to Credit Suisse
First Boston International setting forth for each such Specified Investment or
Eligible Investment the CUSIP number or other similar number for such
obligation (or, if such obligation does not have such a number, (i) the name
of the issuer, (ii) its maturity date, (iii) its yield or rate of return, and
(iv) its rating, if rated by any nationally recognized rating agency).

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