Document:

exv10w18

Exhibit 10.18

CONFIDENTIAL TREATMENT REQUESTED FOR PORTIONS OF THIS DOCUMENT. PORTIONS FOR WHICH CONFIDENTIAL
TREATMENT IS REQUESTED ARE DENOTED BY [***]. MATERIAL OMITTED HAS BEEN FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION IN ACCORDANCE WITH RULE 406, PROMULGATED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED.

AMENDED AND RESTATED

SERVICES AGREEMENT

Among

TERRA INDUSTRIES INC.

and

BMC HOLDINGS INC.

and

METHANEX METHANOL COMPANY

As Amended and Restated, December 2, 2008, to be effective January 1, 2009

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	1. INTERPRETATION
	 	 	2	 
	1.1 Definitions
	 	 	2	 
	1.2 Interpretation
	 	 	2	 
	1.3 Jurisdiction, Consent to Service of Process
	 	 	2	 
	1.4 Schedules
	 	 	3	 
	2. PROVISION OF SERVICES
	 	 	3	 
	2.1 Undertaking to Provide and to Accept Services
	 	 	3	 
	2.2 Service Standards
	 	 	3	 
	2.3 Service Levels
	 	 	3	 
	2.4 Coordination of Services
	 	 	3	 
	2.5 Terra’s Rights to Provide Services
	 	 	4	 
	3. TERM AND TERMINATION
	 	 	4	 
	3.1 Term
	 	 	4	 
	3.2 Termination of Services for Breach
	 	 	4	 
	3.3 Termination of Services for Bankruptcy
	 	 	4	 
	3.4 Voluntary Termination by Methanex
	 	 	5	 
	3.5 Automatic Termination
	 	 	5	 
	3.6 Effect of Termination
	 	 	5	 
	4. SUSPENSION OF SERVICES
	 	 	5	 
	4.1 Temporary Suspension of Services for Repairs/Maintenance
	 	 	5	 
	4.2 Emergency Repairs
	 	 	6	 
	4.3 Maintenance Schedule
	 	 	6	 
	4.4 Suspension or Termination of Operations at Beaumont Facility
	 	 	6	 
	5. FORCE MAJEURE AND TEMPORARY SUSPENSION OF SERVICES
	 	 	6	 
	5.1 Occurrence of Event of Force Majeure
	 	 	6	 
	5.2 Notice to Other Party
	 	 	6	 
	5.3 Methanex’s Payment Obligations
	 	 	7	 
	6. [SECTION 6 OF PREVIOUS VERSION INTENTIONALLY DELETED]
	 	 	7	 
	7. PAYMENT FOR SERVICES AND AUDIT RIGHTS
	 	 	7	 
	7.1 Terra Expenses
	 	 	7	 
	7.2 Service Fees
	 	 	7	 
	7.3 Taxes
	 	 	7	 
	7.4 Payment Terms
	 	 	8	 
	7.5 Adjustments for Errors
	 	 	8	 
	7.6 Late Payments
	 	 	8	 
	7.7 Audit Rights
	 	 	8	 
	8. REPRESENTATIONS AND WARRANTIES
	 	 	9	 
	8.1 Representations and Warranties of Terra
	 	 	9	 
	9. PAYMENT FOR SERVICES AND AUDIT RIGHTS
	 	 	10	 
	9.1 COVENANTS
	 	 	10	 
	9.2 Covenants of Terra
	 	 	10	 
	10. INSURANCE
	 	 	13	 
	11. LIMITATION ON LIABILITY/INDEMNITY
	 	 	14	 
	11.1 Limitation of Liability
	 	 	14	 
	11.2 Indemnification of Terra
	 	 	14	 
	11.3 Indemnification of Methanex
	 	 	14	 

 

 

	 	 	 	 	 
	11.4 Indemnification Procedures
	 	 	15	 
	11.5 Defence of Third Party Claim
	 	 	15	 
	11.6 Payment
	 	 	15	 
	12. CONFIDENTIALITY
	 	 	16	 
	12.1 Information
	 	 	16	 
	12.2 Exception
	 	 	16	 
	12.3 Disclosure Required by Law
	 	 	16	 
	12.4 Return of Information
	 	 	17	 
	12.5 Restriction on Disclosure of this Agreement
	 	 	17	 
	12.6 Public Announcements
	 	 	17	 
	12.7 Remedies
	 	 	17	 
	13. DISPUTE RESOLUTION
	 	 	17	 
	13.1 Amicable Settlement
	 	 	17	 
	13.2 Inadmissibility
	 	 	17	 
	13.3 Arbitration
	 	 	17	 
	13.4 Interim Relief
	 	 	19	 
	13.5 Continuing Obligations
	 	 	19	 
	14. MISCELLANEOUS
	 	 	20	 
	14.1 Relationship of Parties
	 	 	20	 
	14.2 Notices
	 	 	20	 
	14.3 Counterparts
	 	 	20	 
	14.4 Benefit and Burden
	 	 	21	 
	14.5 Amendments and Waiver
	 	 	21	 
	14.6 Assignment
	 	 	21	 
	14.7 Severability
	 	 	21	 
	14.8 Applicable Law
	 	 	21	 
	14.9 Expenses
	 	 	21	 
	14.10 Responsible Care®
	 	 	21	 
	14.11 Entire Agreement
	 	 	22	 

 

 

SERVICES AGREEMENT

THIS
SERVICES AGREEMENT (the “Agreement”) is made the 2nd day of December 2008 to be effective
January 1, 2009 (the “Effective Date”) between TERRA INDUSTRIES INC. (“Terra Industries”), a
Maryland corporation, BMC HOLDINGS INC. (“BMC Holdings”), a Delaware corporation, each having its
head office at 600 Fourth Street, Sioux City, Iowa (BMC Holdings and Terra Industries are
collectively referred to as “Terra”) and
METHANEX METHANOL COMPANY (“Methanex”), a Texas
partnership having an office at 15301 Dallas Parkway, Suite 1150, Addison, Texas 75001.

BACKGROUND:

A. BMC Holdings, the 100% owner and operator of the Beaumont Facility (defined in Schedule A
attached) has agreed to sell the Beaumont Facility effective January 1, 2009 to Eastman Chemical
Company; pursuant to a Facility Lease with Eastman Chemical Company effective January 1, 2009 (the
“Facility Lease”), Terra will acquire certain rights to continue to operate a terminal business at
the Beaumont Facility;

B. Pursuant to an Asset Purchase Agreement dated December 15, 2003, (“Asset Purchase Agreement”)
among Terra Industries, BMC Holdings and Methanex, Terra has agreed to sell to Methanex and
Methanex has agreed to purchase from Terra, certain Assets including Contracts (as those terms are
defined in the Asset Purchase Agreement) and certain exclusive rights to the production of Methanol
at the Beaumont Facility, all as more particularly described in the Asset Purchase Agreement; the
parties note that the Asset Purchase Agreement expires by its terms on December 31, 2008, is not
being renewed and will be of no further effect from that date;

C. DuPont has provided the Wharf Services and certain Slip Services (as those terms are defined in
Schedule A) to Terra at the Beaumont Facility in accordance with the provisions of the DuPont
Agreement (defined in Schedule A); as a result of a transfer of assets from DuPont to Lucite
International (“Lucite”) on April 1, 2007, certain of these services have been provided since that
date by Lucite as assignee pursuant to the DuPont Agreement (DuPont and Lucite accordingly being
referred to in this Agreement collectively as “DuPont”), it being understood that certain services
provided by Terra to Methanex under this Agreement are furnished to Terra by DuPont pursuant to the
DuPont Agreement; and

D. In connection with the sale of its Assets to Methanex, Terra agreed pursuant to the Services
Agreement dated December 15, 2003 to provide certain ongoing services to Methanex on the terms and
conditions set forth herein, but subject to the terms of the DuPont Agreement concerning such
services. Under this Amended and Restated Services Agreement, Terra agrees to provide certain
ongoing services to Methanex on the terms and conditions set forth herein, subject to the terms of
the Du Pont Agreement.

AGREEMENT:

NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the premises, mutual covenants and
agreements contained in this Agreement, and other good and valuable

 

 

consideration (the receipt and
sufficiency of which is acknowledged by the Parties), the Parties covenant and agree as follows:

     1. INTERPRETATION

1.1 Definitions. In this Agreement terms with an initial capital letter shall have the meaning
given to such terms as set forth in Schedule A.

1.2 Interpretation. In this Agreement:

	 	(a)	 	all terms defined in the singular shall have the same meanings in the plural
and vice versa;
	 
	 	(b)	 	all references to currency in this Agreement are references to the lawful
currency of the United States;
	 
	 	(c)	 	all references to Sections and Subsections shall be deemed to be references to
the Sections and Subsections of this Agreement;
	 
	 	(d)	 	the captions and headings contained in this Agreement are for convenience of
reference only and shall not be considered or given any effect in construing the
provisions hereof if any question of intent should arise;
	 
	 	(e)	 	reference to any Law or Laws means such Law or Laws as amended, modified,
codified, re-enacted, supplemented or superseded in whole or in part, and in effect
from time to time; and
	 
	 	(f)	 	no provision of this Agreement shall be interpreted or construed against either
Party solely because that Party or its legal representative drafted such provision.

1.3 Jurisdiction, Consent to Service of Process. Subject to the agreement of the Parties to
resolve all disputes arising out of or relating to this Agreement in accordance with the procedures
set forth in Section 13 of this Agreement, any action or proceeding which is permitted to be
brought by a Party against a Party to this Agreement arising out of or relating to this Agreement,
whether in tort or contract or at law or in equity, shall be brought in a federal or state court in
the State of New York, Manhattan Borough and each Party: (i) irrevocably submits to the personal
and exclusive jurisdiction of such courts; (ii) waives any objection to laying venue in any such
action or Proceedings in such courts; (iii) waives any objection that such courts are an
inconvenient forum or do not have jurisdiction over it; and (iv) agrees that service of process
upon such Party may be effected by mailing a copy thereof by registered or certified mail (or any
substantially similar form of mail), postage prepaid, to it at its address specified in Subsection
14.2. The foregoing consents to jurisdiction and service of process shall not constitute general
consents to service of process in the State of New York for any purpose except as provided herein
and shall not be deemed to confer rights on any Person other than the Parties to this Agreement.
The provisions of this Subsection 1.3 shall not affect a Party’s right to bring any proceedings
related to the enforcement of any arbitration award in any other jurisdiction.

2

 

1.4 Schedules. The following schedules are attached to this Agreement and are incorporated into
and form an integral part of this Agreement:

	 	 	 
	Schedule	 	Description
	Schedule A

	 	Definitions
	Schedule B

	 	Services
	Schedule C

	 	Specifications
	Schedule D

	 	DuPont Wharf Allocation
	Schedule E

	 	Extracts of the DuPont Agreement
	Schedule F

	 	Disclosure Schedule

     2. PROVISION OF SERVICES

2.1 Undertaking to Provide and to Accept Services. Terra shall perform or cause to be performed,
the Services described in Schedule B, in each case on the terms and subject to the conditions set
forth in this Agreement (in particular, Schedule B) and, with respect to the Wharf Services and the
Slip Services subject to the terms of the DuPont Agreement.

2.2 Service Standards. Terra shall perform the Services with the standard of professional skill,
care and diligence customarily applied in respect of services of the same quality and character as
the Services in similar industry manufacturing processes. Terra shall undertake all reasonable
efforts to require DuPont to provide the service levels required under the DuPont Agreement
relating to the Wharf Services and the Slip Services.

2.3 Service Levels. Terra shall provide the Services at the service levels set forth in the
attached Schedule B. Methanex may upon 60 days’ prior written notice to Terra (each such notice, a
“Reduction Notice”) reduce the level of any Service provided hereunder. Each Reduction Notice
shall identify the Service and specify the level required and the date on which Methanex desires
such reduction to become effective (which shall not be earlier than 60 days after the date of such
Reduction Notice). From and after the effective date of such reduction, Terra shall use all
reasonable efforts to reduce such Service to the level set forth in the applicable Reduction
Notice. All costs associated with such Service shall be adjusted to give effect to such reduced
service level.

2.4 Coordination of Services. Terra shall, at all times, have sole authority with respect to all
personnel matters involving the employees, consultants and third-party contractors at the Beaumont
Facility, including salaries, benefits, compensation, indirect personnel costs, training,
insurance, labour matters, working hours, job responsibilities, health and safety procedures,
bonding and all other employee, personnel-related and contracting matters. Terra shall be
responsible for coordinating the provision of Services and, without limiting the generality of the
foregoing, all Services shall be provided by employees of Terra or by third parties with whom Terra
has contracted to provide such Services. Methanex acknowledges that the Wharf Services will be
provided by Terra in accordance with the provisions of the DuPont Agreement, and that the DuPont
employees shall be carrying out the Wharf Services. Methanex shall not have any liability for any
personnel matters involving employees, consultants and third-party contractors at the DuPont Wharf.

3

 

2.5 Terra’s Rights to Provide Services. The Parties acknowledge and agree that the Wharf Services
and certain of the Slip Services provided by Terra to Methanex under this Agreement are furnished
to Terra by DuPont pursuant to the terms of the DuPont Agreement. Notwithstanding any terms in
this Agreement, Terra shall not be obligated to provide the Wharf
Services and certain of the Slip Services to Methanex under this Agreement if the provision of such
services is beyond Terra’s control as a result of DuPont failing to provide such Wharf Services and
Slip Services to Terra under the DuPont Agreement.

     3. TERM AND TERMINATION

3.1 Term. This Agreement shall be effective from January 1, 2009 until December 31, 2011.

3.2 Termination of Services for Breach. The obligation of Terra to provide one or more Services
and the obligation of Methanex to accept one or more Services may be terminated at the option of:

	 	(a)	 	Methanex, if Terra fails to provide any Service or to perform its obligations
in accordance with the terms of this Agreement, if such failure shall remain unremedied
for 30 days after written notice thereof shall have been given by Methanex to Terra or,
if the failure is of a type that cannot reasonably be cured within 30 days, failure to
initiate within such 30 day period such action as reasonably can be taken toward curing
the same and/or failure to prosecute such action as promptly as is reasonably possible
after such action is initiated; and
	 
	 	(b)	 	Terra, if (i) Methanex shall fail to pay an amount when the same becomes due
and payable under this Agreement and any such failure shall remain unremedied for a
period of the longer of (x) ten days after notice thereof shall have been given by
Terra to Methanex and (y) 40 days after the date such payment is due; provided that
Terra shall not have such right of termination in the event Methanex is contesting in
good faith the amount of any such overdue amount and has paid to Terra any undisputed
amount, or (ii) Methanex fails to perform its obligations in accordance with the terms
of this Agreement, and any such failure to perform shall remain unremedied for a period
of 30 days after notice thereof shall have been given by Terra to Methanex or, if the
failure is of a type that cannot reasonably be cured within 30 days, failure to
initiate within such 30 day period such action as reasonably can be taken toward curing
the same and/or failure to prosecute such action as promptly as is reasonably possible
after such action is initiated.

3.3 Termination of Services for Bankruptcy. This Agreement may be terminated by a Party if the
other Party:

	 	(a)	 	is unable to pay its debts as they become due, has made a general assignment
for the benefit of creditors, filed a voluntary bankruptcy petition, become the subject
of an order for relief or been declared insolvent in any bankruptcy or insolvency
Proceedings, instituted a Proceedings or filed an answer in a Proceedings seeking to
adjudicate itself insolvent or seeking reorganization, arrangement, composition,

4

 

	 	 	 	readjustment, protection, liquidation, winding-up, dissolution or similar relief of
such Party or such Party’s debts or liabilities under any dissolution, liquidation,
bankruptcy, moratorium, readjustment of debt, compromise, rearrangement, receivership,
insolvency, fraudulent transfer or conveyance, reorganization or
similar debtor relief Law from time to time in effect affecting the rights of
creditors generally; or
	 
	 	(b)	 	has had any proceeding of the type referred to in Subsection 3.4(a) above filed
or commenced against it or has by any act indicated its approval thereof, consented
thereto or acquiesced therein, or has had an order, judgment or decree entered
appointing a truste, receiver, custodian, liquidator or similar official adjudicating
such Party insolvent or approving the petition in any such Proceedings, and such order,
judgment or decree has remained in effect and unstayed for 90 days.

3.4 Voluntary Termination by Methanex. Methanex may, in its sole discretion, terminate this entire
Agreement or any one or more Services provided by Terra to Methanex, upon 190 days prior written
notice to Terra, in writing.

3.5 Automatic Termination. This Agreement shall automatically terminate in the event Terra
delivers a Terra Restart Notice (defined in the Asset Purchase Agreement) to Methanex, in
accordance with the Asset Purchase Agreement, with such termination to be effective as of the
Production Commencement Date (defined in the Asset Purchase Agreement).

3.6 Effect of Termination. Upon the expiration or termination of this Agreement, this Agreement
shall immediately become void and there shall be no liability on the part of either Party as a
result of such termination, and in particular, Methanex shall not be liable to make any further
payments to Terra under Section 7 of this Agreement other than for amounts that are payable as at
the date of termination; provided, however, that Subsections 14.1, 14.2, 14.8, 14.9, Sections 11
and 12, shall survive the expiration or termination of this Agreement. Notwithstanding anything to
the contrary contained in this Agreement, a termination of this Agreement for any reason shall not
affect any rights or remedies of either Party arising out of any breach of this Agreement prior to
such termination or the right of either of the Parties to receive any amount earned or accrued
hereunder prior to such termination or otherwise payable with respect to any period prior to such
termination.

     4. SUSPENSION OF SERVICES

4.1 Temporary Suspension of Services for Repairs/Maintenance. The provision of one or more of the
Services by Terra to Methanex may be temporarily suspended for such periods of time as are
necessary to carry out scheduled maintenance or necessary repairs or improvements to the Beaumont
Facility, the DuPont Wharf or the Facility Pipelines
(“Temporary Service Suspension”). In the
event of any Temporary Service Suspension, Terra may elect to reduce, interrupt, allocate, alter or
change the Services that it is required to provide under this Agreement; provided that:

	 	(a)	 	except in the case of emergencies, Terra shall deliver 30 days written notice
to Methanex of any Temporary Service Suspension, including relevant details

5

 

	 	 	 	relating to
the proposed reduction, interruption, allocation, alteration or change in the Services
as a result of the Temporary Service Suspension;
	 
	 	(b)	 	unless Methanex shall otherwise consent in writing, such Temporary Service
Suspension shall not exceed 14 days.

Upon the occurrence and during the continuance of any of the events referred to in this Subsection
4.1, Terra and Methanex shall cooperate to attempt to arrange for Services to be furnished to
Methanex in an alternate manner or by a third party acceptable to Methanex, to minimize or reduce
the effect of such Temporary Service Suspension on Methanex’s operations.

4.2 Emergency Repairs. Terra shall provide notice to Methanex, as soon as reasonably possible (and
in any event within two days) in the event of any emergency repair or unplanned but required
maintenance to the Beaumont Facility, the Facility Pipelines or the DuPont Wharf Terra shall use
all reasonable efforts to complete any such emergency repairs in a timely manner and to resume the
provision of the Services (and each Service) as soon as possible.

4.3 Maintenance Schedule. Terra shall deliver a copy of the annual maintenance schedule on July
1st in each Year to Methanex, which annual maintenance schedule shall set forth the
dates and times when scheduled maintenance by Terra is expected by Terra to occur on the Beaumont
Facility and any other relevant details in respect of such scheduled maintenance. Terra shall
deliver to Methanex, on January 1, 2004, a copy of its 2003 annual maintenance schedule, as
up-dated. Terra shall up-date its annual maintenance schedule on a quarterly basis and shall
deliver such up-dated maintenance schedule to Methanex within 20 days after the end of each
calendar quarter.

4.4 Suspension or Termination of Operations at Beaumont Facility. For greater certainty, in the
event the Beaumont Facility is not Operational, Terra shall continue to provide the Services to
Methanex in accordance with Schedule B.

     5. FORCE MAJEURE AND TEMPORARY SUSPENSION OF SERVICES

5.1 Occurrence of Event of Force Majeure. Upon an Event of Force Majeure and during the
continuance of an Event of Force Majeure, the obligation of Terra to provide one or more Services
and the corresponding obligation of Methanex to accept one or more Services, as the case may be,
shall be temporarily suspended; provided that (i) such suspension shall relate solely to that
portion of the Service or Services that the party seeking to rely on such Event of Force Majeure is
unable to perform or accept, as the case may be and (ii) such suspension shall be in effect only
for such period during which such Event of Force Majeure shall be continuing. If such Event of
Force Majeure results in a partial rather than a total inability on the part of Terra to perform
the Services, Methanex shall in its sole discretion be entitled to receive any available portion of
the Services.

5.2 Notice to Other Party. Where a Party is prevented from performing its obligations under this
Agreement as a result of an Event of Force Majeure, it shall promptly notify the other Party by
telephone (to be confirmed in writing within three days of the Event of Force Majeure) of the
occurrence of an Event of

6

 

Force Majeure and describe, in reasonable detail, the Services that are
delayed or prevented and an estimate of the anticipated duration of the Event of Force Majeure.
The Party claiming an Event of Force Majeure shall use commercially reasonable efforts to mitigate
the impact or consequence of the event on the other Party and to recommence the provision of
Services to whatever extent possible without delay.

5.3 Methanex’s Payment Obligations. Upon an Event of Force Majeure continuing for more than 30
consecutive days, effective as of the 31st day of such Event of Force Majeure and
continuing until the Event of Force Majeure is finally resolved, Methanex shall have no obligation
to pay the Service Fees or any other amounts set forth under Section 7 of this Agreement.

     6. [SECTION 6 OF PREVIOUS VERSION INTENTIONALLY DELETED]

     7. PAYMENT FOR SERVICES AND AUDIT RIGHTS

7.1 Terra Expenses. Methanex shall reimburse Terra, at Terra’s cost, for the following expenses
incurred by Terra in its performance of the Services under this Agreement:

	 	(a)	 	the proportional amount of the Wharf Service Charges (defined in the DuPont
Agreement) to load and off-load Methanol, the allocation of such charges to Terra for
the period 2001-2003 is set forth in Schedule D;
	 
	 	(b)	 	fuel gas for flaring when loading or off-loading Methanol to and/or from
vessels or barges as may be necessary; and
	 
	 	(c)	 	all reasonable surveyor and laboratory charges to inspect the quality and
quantity of Methanol stored in the Beaumont Storage Tanks.

Terra shall deliver to Methanex, a soon as possible, in each Year a DuPont Wharf Allocation of
Wharf Service Charges in the form of Schedule D attached.

7.2 Service Fees. Terra shall dedicate four full-time personnel to carry out and provide the
Services to Methanex for which Services Methanex shall pay to Terra the sum of [***] per month
under this Agreement (“Service Fees”). In addition to the Service Fees, Methanex shall also pay up
to a maximum of [***] per Year, prorated for any portion of a Year, for contractors fees, materials
and equipment relating to the maintenance of the Facility Pipelines. The Service Fees shall be
invoiced and paid on a quarterly basis, with the fourth quarter invoices received no later than
March 31st of the following year. Methanex shall also pay to Terra an incremental
charge of [***], such charge to be paid in response to Terra’s invoice no later than ninety (90)
days following the end of the preceding year.

7.3 Taxes. To the extent not otherwise paid by Methanex pursuant to this Agreement, Methanex shall
pay to Terra an amount equal to the aggregate amount of all sales and use taxes imposed by any
Governmental Authority on each of the Services provided by Terra to Methanex under this Agreement,
which taxes shall be included and identified on Terra’s monthly invoice to Methanex in accordance
with Subsection 7.4 below. Notwithstanding the foregoing, Terra agrees to use reasonable efforts
to provide exemption certificates where available and to calculate any

7

 

applicable sales and use
taxes and to make payment thereof directly to the appropriate taxing authority.

7.4 Payment Terms. On or before the seventh Business Day of each month during the Initial Term or
any Renewal Term of this Agreement Terra shall deliver to Methanex an invoice setting forth, in
detail sufficient so as to permit the calculation of the amounts payable by
Methanex under Subsection 7.1 including taxes, with respect to the immediately preceding month or,
in the case of any termination of a Service, with respect to such Service. Payments hereunder
shall be made by electronic (EDI or equivalent) transfer. Methanex shall pay the amount of such
invoices to BMC on or before the 25th day of each month. Any payments due on a day
other than a Business Day shall be made on the next succeeding Business Day.

7.5 Adjustments for Errors. If at any time during the Term of this Agreement an error is made in
the calculation of any amount payable by Methanex under this Agreement, the invoice for the month
immediately succeeding the month in which such error was finally determined shall be increased or
decreased, as the case may be, by an amount equal to the sum of such overpayment or underpayment,
as the case may be, by Methanex.

7.6 Late Payments. If all or any part of the sums shown due on any invoices provided for herein
are not paid when due, or if all or any part of the sums shown due are disputed by Methanex and
such dispute is resolved in favour of Terra, then interest on any unpaid amount shall be paid by
Methanex. If all or any part of the sums shown due on any invoices provided for herein are paid
but disputed by Methanex and such dispute is resolved in favour of Methanex, then interest shall be
paid by Terra on the disputed amount so paid. Such interest shall be paid at a rate of two percent
(2%) above the LIBOR rate in force from time to time calculated from the due date of payment up to
and including the actual date of payment and interest.

7.7 Audit Rights.

	 	(a)	 	During the Term, each of the Parties shall keep and maintain proper, detailed,
accurate and complete records and supporting documentation, regardless of the medium by
which they are created or stored, in respect of all matters referred to in this Section
7 (collectively, the “Records”). Each Party shall keep and retain all Records for a
period of 24 months after the end of any Year to which the Records relate (“Record
Retention Period”).
	 
	 	(b)	 	The Parties acknowledge and agree that the Records of each Party contain
sensitive and confidential information, the disclosure of which would cause irreparable
injury to a Party. At any time prior to the expiry of the Record Retention Period,
either Party may, in order to verify and validate the calculation of any formula or the
amount of any payment under this Agreement, audit the Records of the other Party
provided that such audit may only be conducted by an independent accounting firm
(“Independent Auditor”) selected by the Party requesting the audit and subject to a
confidentiality agreement, in a form satisfactory to the Party seeking the audit. The
information conveyed by a Parties’ Independent Auditor to such Party requesting the
audit shall only relate to the accuracy or correctness of formula calculations or
payment amounts and the

8

 

	 	 	 	Independent Auditor shall not provide a copy of the Records or
any other information to such Party.

	 	(c)	 	Audits of either Party’s Records shall be carried out by an Independent Auditor
at any time prior to the expiry of the Record Retention Period, during normal business
hours but upon prior written request to the other Party. The Independent
Auditor may enter the business premises of the other Party where the Records are
located, and inspect, audit and copy any or all of the Records. Each Party shall
co-operate with the other Party and its Independent Auditor in carrying out the
inspection, audit and copying of such Records including, without limitation, by
providing the Independent Auditor with access to, and assistance with, all computer
systems and other electronic means by which any such Records may be kept. The
inspection of any or all of the Records by a Party, from time to time, shall be done
at such Party’s own cost and expense, including, without limitation, such Party’s
costs of its Independent Auditor.
	 
	 	(d)	 	If the Independent Auditor identifies an error in the calculation of any amount
payable by Methanex, the applicable invoice in which the error was determined by the
Independent Auditor shall be increased or decreased, as the case may be, by an amount
equal to such overpayment or such underpayment, as the case may be, by Methanex.

     8. REPRESENTATIONS AND WARRANTIES

8.1 Representations and Warranties of Terra. Terra Industries and BMC Holdings hereby jointly and
severally represent and warrant to Methanex and acknowledge that Methanex is relying on the
representations and warranties of Terra Industries and BMC Holdings in entering into this
Agreement, that:

	 	(a)	 	Corporate Status. Terra Industries is duly incorporated, organized,
validly exists and is in good standing under the laws of Maryland, and is duly
qualified to conduct its business in the State of Texas. BMC Holdings is duly
incorporated, organized, validly exists and is in good standing under the laws of
Delaware, and is duly qualified to conduct its business in the State of Texas.
	 
	 	(b)	 	Authority to Enter into Agreement. Terra Industries and BMC Holdings
each has good and sufficient capacity, power, authority and right to enter into this
Agreement and to observe and perform each of their respective obligations contained in
this Agreement. The execution, delivery and performance of this Agreement has been
duly and effectively authorized by all necessary corporate action of Terra Industries
and BMC Holdings and this Agreement has been duly executed and delivered by and
constitutes a legal, valid and binding obligation, enforceable in accordance with its
terms.
	 
	 	(c)	 	No Conflicts. Neither of the execution and delivery of this Agreement,
nor the due observance and performance by Terra Industries and BMC Holdings of their
respective obligations contained in this Agreement shall materially conflict with or
result in a breach of or a default under any provision, term or condition of:

9

 

	 	(i)	 	the incorporating documents of Terra Industries and BMC
Holdings or any resolution of their respective directors or shareholders;
	 
	 	(ii)	 	to the knowledge of Terra Industries and BMC Holdings any
order, declaration, injunction, decree, writ, judgment or award of any
Governmental Authority, court or arbitrator; or
	 
	 	(iii)	 	any contract to which Terra Industries and BMC Holdings is a
party or by which it is bound.

	 	(d)	 	No Governmental Consents Required. No consent, approval,
authorization, license, order or permit of any Governmental Authority is required for
Terra to duly observe and substantially perform the provisions, terms and conditions of
this Agreement.
	 
	 	(e)	 	State of Assets. Except for the Methanol Production Assets as defined
later in this section, the Facility Assets comprising the Beaumont Facility, the DuPont
Wharf and the Facility Pipelines are, based upon industry standards, in good operating
condition, in a state of good maintenance and repair, have been properly maintained and
are adequate for the purposes for which they are currently being used. The
representation and warranty of this Section 8.1(e) shall not apply to, and specifically
excludes all those assets at the Beaumont Facility engaged in or related to the
production of methanol (the “Methanol Production Assets”).
	 
	 	(f)	 	Provision of Services to other Entities. Except as otherwise permitted
by this Agreement, Terra has not entered into any agreements or undertakings (whether
or not in writing) that relate to the Services to be provided by Terra to Methanex
pursuant to this Agreement with a third party or with one of its Affiliates, nor has it
adopted any policies or procedures within the Beaumont Facility, that would entitle
such third party or Affiliate or any manufacturing process at the Beaumont Facility to
receive such Services in a manner that, solely as a result of the rights afforded to
such third party, Affiliate or manufacturing process, would impair the rights or
increase the obligations of Methanex with respect to such Services, including, without
limitation, any arrangements with respect to the loading or off-loading of Methanol or
materials at the Beaumont Facility and the DuPont Wharf.

     9. PAYMENT FOR SERVICES AND AUDIT RIGHTS

9.1 COVENANTS

9.2 Covenants of Terra. So long as this Agreement remains in effect, Terra shall:

	 	(a)	 	Compliance with Law. Comply and perform its obligations and the
Services under this Agreement in accordance with, and shall ensure that its contractors
comply and perform their obligations in accordance with, all applicable Laws,
including, without limitation, all applicable Environmental Laws and Environmental
Permits.

10

 

	 	(b)	 	Inspection, Access and Testing. At scheduled times and intervals to be
agreed upon by the Parties arrange for Methanex, its agents or representatives to
access to the Beaumont Facility, the DuPont Wharf and Facility Pipelines in order to
(x) consult with those Terra employees designated by Terra regarding Services to be
provided hereunder and (y) require that meter calibration and/or providings, tank
strappings or other tests be conducted to verify the accuracy of equipment used to
determine the quality, quantity or level of Services provided by or on behalf of
Terra to Methanex; provided that (A) Methanex shall not be entitled to require meter
calibration and/or providings, tank strappings or other tests permitted by clause
(y) above any more frequently than every 30 days and (B) Methanex shall cause its
employees, agents and representatives to comply with all of Terra’s rules and
regulations pertaining to security, safety and property protection and follow the
route or routes designated by Terra.

	 	(c)	 	Authorizations and Permits. (i) Maintain in full force and effect all
authorizations, waivers, consents, licenses, permits (including all Environmental
Permits), orders and approvals and make or cause to be made all registrations, filings,
permit transfers (including any Environmental Permit transfers) and notices with or to
all third parties and Governmental Authorities necessary or appropriate for Terra to
provide Services and (ii) with respect to any such authorizations, waivers, consents,
permits, orders and approvals that shall materially affect the manner in which Methanex
operates the Beaumont Facility. Without limiting the generality of the foregoing,
Terra shall cause any and all required authorizations, waivers, consents, licenses,
permits (including Environmental Permits) orders and approvals (and filing all
applications in connection therewith) be obtained in order to (i) provide vessel or
barge off-loading at the DuPont Wharf at a rate of 1,000 metric tonnes per hour; and
(ii) dredge the dock at the DuPont Wharf.
	 
	 	(d)	 	Alterations of Facilities. Not make any alteration to any of the
Facility Assets if such alteration would (i) materially adversely affect Terra’s
ability to provide Services to Methanex on the terms and conditions of this Agreement
or (ii) materially increase the amounts that are payable by Methanex in connection with
Services provided to Methanex under this Agreement; provided that clause (ii) shall not
apply to any alteration (x) that is required by any law, rule, regulation or
Governmental Order, (y) that in Terra’s reasonable opinion, is required to preserve
safety or environmental standards at the Beaumont Facility, the Facility Pipelines or
the DuPont Wharf or (z) if the amounts that are payable by Methanex in connection with
Services provided to Methanex under this Agreement would not be materially increased as
a result of such alteration. Notwithstanding the foregoing, promptly upon the
execution of this Agreement, Terra shall use best efforts to cause DuPont to carry out
any and all required dock dredging at the DuPont Wharf as may be necessary or
reasonably requested by Methanex, in order for Terra to provide the Wharf Service, such
dredging costs shall be at Methanex’s expense.
	 
	 	(e)	 	Increase in Levels of Services. Discuss and reasonably consider
requests by Methanex to provide additional services to Methanex.

11

 

	 	(f)	 	Amendment/Termination of Material Contracts. Not cancel or terminate
any Material Contract or consent to or accept any cancellation or termination thereof,
amend or otherwise modify any material term of any Material Contract or give
any consent, waiver or approval thereunder, waive any default under or breach of any
material term of any Material Contract, agree in any manner to any other amendment,
modification or change of any term or condition of any Material Contract that would
materially impair or interfere with the ability of Terra to provide any Service
hereunder or that would materially increase any of the amounts payable by Methanex
hereunder; provided that the foregoing shall not apply to any act or action that may
be undertaken unilaterally by the other party to such Material Contract or that
occurs as a matter of law, rule, regulation or Governmental Order.
	 
	 	(g)	 	Renewal of DuPont Agreement. Deliver to DuPont a written request for
an extension of the Service Termination Date (as defined in the DuPont Agreement) in
accordance with the provisions of Subsection 3.02(c) or Subsection 3.02(d) of the
DuPont Agreement and use its best efforts to negotiate with DuPont an extension of the
Services Termination Date or at a minimum the services provided by DuPont to Terra that
comprise the Wharf Services. Terra shall keep Methanex apprised at all times of its
progress in its negotiations with DuPont in respect of an extension of the Services
Termination Date.
	 
	 	(h)	 	Provision of Service to Other Entities. Except as otherwise permitted
by this Agreement, not enter into any agreements or undertakings that relate to the
Services to be provided by Terra to Methanex pursuant to this Agreement with any third
parties or any of Terra’s Affiliates, or adopt any policies or practices within the
Beaumont Facility that would entitle such third parties or any of Terra’s Affiliates or
any of the manufacturing processes at the Beaumont Facility to receive Services in a
manner that, solely as a result of the rights afforded to such third party, Affiliate
or manufacturing process, would impair the rights or increase the obligations of
Methanex with respect to such Service.
	 
	 	(i)	 	Maintenance of Facilities. Undertake or cause DuPont to carry out,
subject to the provisions of the DuPont Agreement, regularly scheduled maintenance of
the DuPont Wharf and Beaumont Slip and any assets used in connection with the DuPont
Wharf or Beaumont Slip, in accordance with industry standards and the historical
practice.
	 
	 	(j)	 	Reporting. Furnish to Methanex:

	 	(i)	 	promptly upon Terra’s receipt thereof, copies of any statement
or report to or notice from any Governmental Authority or third party that
relates to any authorization, waiver, consent, permit (including any
Environmental Permit), order or approval that materially affects any Service
(including without limitation the Wharf Services and the Facility Pipeline
Services) to be provided by or on behalf of Terra;

12

 

	 	(ii)	 	promptly upon becoming aware, notice of any event or occurrence
that results in any non-compliance by Terra with any applicable Law, rule,
regulation, permit or, authorization including, without limitation, any
Environmental Law or Environmental Permit insofar as such non-compliance shall adversely affect any Service to be provided by or on behalf
of Terra to Methanex or the performance of any of Terra’s other obligations
under this Agreement;
	 
	 	(iii)	 	within a reasonable period after becoming aware, notice of any
event or contingency that may significantly increase Methanex’s costs under
this Agreement and any proposals that Terra may have to avoid or reduce such
cost increase; and
	 
	 	(iv)	 	promptly, and in any event not later than three days prior
thereto, notice of the date and time of all meter calibrations and/or
providings or tank strappings and other tests conducted to verify the accuracy
of the equipment used to determine the quality, quantity or level of Services.

     10. INSURANCE

At all times during the Term, Terra shall take out and maintain with financially sound and
reputable insurers, at its own cost, the insurance coverage listed below:

	 	 	 
	Coverage	 	Amount
	General Public Liability covering bodily injury
and property damage

	 	$25 million per occurrence
	 
	 	 
	Employer’s Liability

	 	$25 million per occurrence
	 
	 	 
	Marine liability insurance covering property
damage and bodily injury arising out of
ownership, use or operation of the DuPont Wharf
or the Beaumont Facility

	 	$25 million per occurrence
	 
	 	 
	All risk on methanol product in tanks and/or
pipelines for the full replacement cost of the
Methanol

	 	$10 million per occurrence
	 
	 	 
	Workers’ Compensation

	 	Required Statutory Minimum
	 
	 	 
	Sudden and Accidental Pollution

	 	$25 million per occurrence
	 
	 	 
	Environmental Pollution

	 	$25 million per occurrence

Upon request, Terra shall furnish Methanex with certification of such insurance providing for at
least 30 days’ prior written notice of cancellation or material modification. To the extent
necessary under the indemnity provisions of this Agreement, Terra shall name Methanex and the other
Methanex Indemnified Persons as an additional insured under all of such policies. Each insurance
policy shall provide a waiver of subrogation in favour of Methanex.

13

 

     11. LIMITATION ON LIABILITY/INDEMNITY

11.1 Limitation of Liability. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN, EXCEPT AS
PROVIDED IN SUBSECTION 13.3(f) BELOW, NO PARTY, NOR ANY RESPECTIVE REPRESENTATIVE, SHALL BE LIABLE
TO ANY OTHER PARTY FOR ANY CONSEQUENTIAL, INDIRECT, SPECIAL OR PUNITIVE
DAMAGES FROM ANY CAUSE WHATSOEVER, WHETHER BASED IN CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT
LIABILITY OR ANY OTHER LEGAL THEORY UNLESS (I) SUCH DAMAGES RESULT FROM THE GROSS NEGLIGENCE OR
INTENTIONAL MISCONDUCT OF SUCH PARTY OR ANY OF ITS REPRESENTATIVES; OR (II) SUCH DAMAGES ARE
PAYABLE BY AN INDEMNIFIED PARTY PURSUANT TO A THIRD PARTY CLAIM MADE BY A NON-AFFILIATE OF THE
INDEMNIFIED PARTY AND FOR WHICH INDEMNIFICATION IS OTHERWISE AVAILABLE HEREUNDER.

11.2 Indemnification of Terra. Methanex agrees to indemnify, defend and hold harmless Terra and
its directors, officers, employees, contractors, agents and representatives (the “Terra Indemnified
Persons”), from and against any and all Claims and Proceedings to the extent arising out of the
negligence or intentional misconduct of Methanex or any other Methanex Indemnified Person.

11.3 Indemnification of Methanex. Terra agrees to indemnify, defend and hold harmless Methanex and
its respective, directors, officers, employees, contractors, agents and representatives (the
“Methanex Indemnified Persons”), from and against any and all Claims and Proceedings to the extent
arising out of:

	 	(a)	 	any breach of any representation, warranty or covenant under this Agreement;
	 
	 	(b)	 	the failure of Terra to perform any obligation required to be performed by
Terra under this Agreement;
	 
	 	(c)	 	the negligence or intentional misconduct of Terra or any other Terra
Indemnified Person;
	 
	 	(d)	 	any past, present or future violation of Environmental Laws by Terra or DuPont
with respect to the Beaumont Facility, the DuPont Wharf or the Facility Pipelines;
	 
	 	(e)	 	the presence of any Hazardous Substance in, on or under the Beaumont Facility,
the DuPont Wharf or the Facility Pipelines or in, on or under adjacent lands or
waterbodies where such Hazardous Substance have migrated from or been Released from the
Beaumont Facility, the DuPont Wharf or the Facility Pipelines;
	 
	 	(f)	 	any use, handling, production, generation, manufacture, transportation,
storage, handling, disposal, spill or Release of any Hazardous Substances by Terra or
DuPont at, on, under, about or from the Beaumont Facility, the DuPont Wharf or the
Facility Pipelines; or
	 
	 	(g)	 	any spill or Release of methanol or any other substance from any Facility Asset
(including, without limitation, Facility Assets located at the Beaumont Facility, the
DuPont Wharf and the Facility Pipelines), including, without limitation: (a) all

14

 

	 	 	 	Environmental Costs and Liabilities arising out of such spill or Release of materials;
(b) any damage to the Beaumont Facility, the DuPont Wharf, the Facility Pipelines and
Facility Assets or to other property; and (c) the cost of the methanol owned by
Methanex that has been spilled or Released.

Notwithstanding any of the foregoing, Terra shall not be responsible for and shall not be required
to indemnify any Methanex Indemnified Persons from and against Claims and Proceedings (or portion
thereof) that arise out of or in connection with any spill or Release of methanol or other
substance from the acts and omissions of any Methanex Indemnified Persons.

11.4 Indemnification Procedures. Within a reasonable period of time after a Terra Indemnified
Person or a Methanex Indemnified Person (whether one or more, an
“Indemnified Party”) establishes a
basis for or receives actual notice of any Claim covered by Subsection 11.2 or Subsection 11.3, as
the case may be, the Indemnified Person shall notify the Party from whom indemnification is sought
(the “Indemnifying Party”) in writing of such Claim, provided, however, that the failure to so
notify the Indemnifying Party shall not relieve the Indemnifying Party from any liability which it
may have to the Indemnified Person pursuant to Subsection 11.2 or Subsection 11.3, as the case may
be, except to the extent of material detriment suffered by the Indemnifying Party as a result of
such failure. In the event that a Claim arises out of or results from matters with respect to
third parties (a “Third Party Claim”), the Indemnifying Party shall undertake the defence thereof
by attorneys chosen by it, which are reasonably acceptable to the Indemnified Person. So long as
the Indemnifying Party is defending any Third Party Claim actively and in good faith, the
Indemnified Person shall not settle such Third Party Claim without the consent of the Indemnifying
Party.

11.5 Defence of Third Party Claim. If the Indemnifying Party, within a reasonable time after
notice of any Third Party Claim, fails to defend such Third Party Claim actively and in good faith,
the Indemnified Party shall (upon further notice) have the right to undertake the defence,
compromise or settlement of such Third Party Claim or consent to the entry of a judgment with
respect to such Third Party Claim, on behalf of and for the account and risk of the Indemnifying
Party, and the Indemnifying Party shall thereafter have no right to challenge the Indemnified
Party’s defence, compromise, settlement or consent to judgment. Irrespective of which Party has
the right to defend, compromise or settle any Third Party Claim pursuant to this Subsection 11.5,
each of the Indemnifying Party and the Indemnified Party shall be entitled to consult with each
other, to the extent it reasonably requests, in respect of the defence of such Third Party Claim
and shall cooperate in the defence of any such Third Party Claim, including making its partners (if
applicable), officers, directors, employees and books and records available for use in such Third
Party Claim, and shall take those actions reasonably within its power which are reasonably
necessary to preserve any legal defences to such matters, without the necessity of formal subpoena
or court action.

11.6 Payment. The Indemnifying Party shall promptly pay each Indemnified Party any amount properly
due under this Section 11 upon demand therefor and reimburse each Indemnified Party for all
reasonable expenses (including reasonable attorneys’ fees and costs of court) for which the
Indemnified Party is entitled to be indemnified hereunder as they are incurred by such Indemnified
Party. Upon judgment, determination, settlement or compromise of any Third Party Claim, the
Indemnifying Party shall, upon demand therefor, promptly pay on behalf of the Indemnified Party,
and/or shall promptly reimburse the Indemnified Party for its

15

 

payment of, the amount so determined
by such judgment, determination, settlement or compromise and all other Claims of the Indemnified
Party with respect thereto, unless, in the case of a judgment or determination, an appeal is made
therefrom; provided, however, that if the Indemnifying Party desires to appeal from an adverse
judgment or determination, then the Indemnifying Party shall post and pay the cost of the security
or bond to stay execution of the
judgment or determination pending appeal. Upon the payment in full by the Indemnifying Party of
all of such amounts, the Indemnifying Party shall succeed to the rights of the Indemnified Party,
to the extent such rights are not waived in settlement, against the third party who made such Third
Party Claim.

     12. CONFIDENTIALITY

12.1
Information. Each Party (“Disclosing Party”) has disclosed, and may from time to time
hereafter disclose, certain Confidential Information to another Party
(“Recipient”). The Recipient
shall treat the Confidential Information as confidential and shall not use any Confidential
Information for any purpose other than in connection with the transactions contemplated by this
Agreement. The Recipient shall not disclose any Confidential Information to any Person without the
prior written consent of the Disclosing Party. The Recipient further agrees to limit dissemination
of and access to the Confidential Information to its employees and representatives who have a need
to know such Confidential Information for the purposes contemplated by this Agreement provided that
such employees and representatives are informed of and agree to comply with the terms of this
Subsection 12.1.

12.2 Exception. Subsection 12.1 shall not apply to the disclosure of Confidential Information by
the Recipient which:

	 	(a)	 	at the time of its disclosure or thereafter becomes generally available to the
public other than as a result of a breach of this Agreement;
	 
	 	(b)	 	is already known to the Recipient through proper means prior to disclosure as
evidenced by written or other tangible records and practices;
	 
	 	(c)	 	is independently and lawfully developed by the Recipient completely without
reference to the Confidential Information as evidenced by written or other tangible
records and practices; or
	 
	 	(d)	 	is disclosed without restriction by a third party who is in lawful possession
of the information and who has the right to make disclosure.

12.3 Disclosure Required by Law. The Recipient shall not be in breach of its obligation not to
disclose Confidential Information of the Disclosing Party if that disclosure is required by law, a
court order or similar proceedings, or is formally requested by a Governmental Authority, provided
that the Recipient gives the Disclosing Party as much notice as is reasonably possible in the
circumstances prior to disclosing any Confidential Information and the Recipient cooperates with
the Disclosing Party in any application, Proceedings or other action the Disclosing Party may
undertake to obtain a protective order or other means of protecting the confidentiality of the
Confidential Information required to be disclosed.

16

 

12.4 Return of Information. Upon the termination of this Agreement, the Recipient shall return all
Confidential Information, including any copies of that information, to the Disclosing Party.

12.5 Restriction on Disclosure of this Agreement. Except as may be required by applicable Law or a
stock exchange upon which a Party is listed, each Party agrees not to disclose any terms or
conditions of this Agreement to any Person who is not a representative of such Party, absent
consent by the other Party, which shall not be unreasonably withheld.

12.6 Public Announcements. Except as may be required by Law or a stock exchange upon which a Party
is listed, no Party shall, without prior written approval of the other Party, issue, or permit any
representative of such Party to issue, any press release or otherwise make, or permit any
representatives of such Party to make, any public statement or announcement with respect to this
Agreement. The Parties hereto shall consult with each other prior to issuing any such press
release or public statement, announcement or the filing of any document that is public record that
in any way references this Agreement or the transactions contemplated by this Agreement.

12.7 Remedies. The Parties agree that the covenants and obligations contained in this Section 12
relate to special, unique and extraordinary matters and that a violation of any of the terms hereof
would cause irreparable injury in an amount which would be impossible to estimate or determine and
for which any remedy at law would be inadequate. As such, the Parties agree that if either Party
fails or refuses to fulfill any of its obligations under this Section 12, then the other Party
shall have the right to seek the remedy of specific performance, which remedy shall be cumulative
and nonexclusive and shall be in addition to any other rights and remedies otherwise available
under any other contract or at law or in equity and to which such Party might be entitled. Each
Party agrees to waive, and to use commercially reasonable efforts to cause each of its
representatives to waive, any requirement for the securing or posting of any bond in connection
with the exercise of such remedy. Each Party agrees not to oppose any request, motion or petition
made or filed by the other Party for such remedy.

     13. DISPUTE RESOLUTION

13.1 Amicable Settlement. All disputes arising out of or in connection with this Agreement or its
performance, including without limitation the validity, scope, meaning, construction,
interpretation or application of this Agreement or any provision hereof shall be settled, to the
extent reasonably practicable, by amicable negotiation, discussion and agreement between the
Parties’ respective Chief Executive Officers, or their designates.

13.2 Inadmissibility. The Parties agree that any discussions pursuant to Subsection 13.1 are
settlement negotiations and, to the extent allowed by Law, the subject matter of such discussions
is not admissible in any future Proceedings. The Parties shall not subpoena or otherwise require
any mediator to testify or produce any records, notes or documents in any future proceedings.

13.3 Arbitration. Any dispute arising out of or in connection with this Agreement that the Parties
have not resolved in accordance with Subsection 13.1 shall be, at the election of Terra or
Methanex, submitted to arbitration in accordance with the following terms and procedures:

17

 

	 	(a)	 	The Party seeking arbitration shall notify the American Arbitration Association
(the “AAA”) and the other Party in writing describing in reasonable detail the nature
of the dispute (the “Dispute Notice”). The resolution of such dispute shall be
determined by a panel of three arbitrators (the “Arbitration Panel”); one to be
appointed by Methanex, one to be appointed by Terra and a neutral arbitrator to be
appointed by the arbitrators appointed by Methanex and Terra. The neutral arbitrator
shall be an attorney and shall act as chairman. If either Party fails to appoint an
arbitrator within 15 Business Days after the dispute is submitted to arbitration, or
the two arbitrators appointed by or on behalf of each Party fail to appoint a neutral
arbitrator within 15 Business Days after the date of the appointment of the last
arbitrator appointed by or on behalf of each Party, then, the third arbitrator shall be
appointed under the provisions of the Commercial Arbitration Rules of the AAA. Each
Party appointed arbitrator shall have knowledge of or experience in the chemical
industry. In the event that any arbitrator is unable to serve, his or her replacement
shall be selected in the same manner as the arbitrator to be replaced. The vote of two
of the three arbitrators shall be required for any decision under this Subsection 13.3.
The arbitration shall be conducted in New York City or such other location that the
Parties may mutually agree in writing;
	 
	 	(b)	 	The arbitration shall be subject to the Federal Arbitration Act as supplemented
by the conditions set forth in this Subsection 13.3. The arbitration shall be
administered by the AAA and shall be governed by the AAA Commercial Arbitration Rules,
other than as specifically modified herein;
	 
	 	(c)	 	The decision of, and award rendered by, the Arbitration Panel shall be in
writing and shall be final and binding on each Party. The award of the Arbitration
Panel shall be reasoned and shall include written findings of fact and conclusions of
Law. The fees and expenses of the Party appointed arbitrators shall be paid by the
Party appointing such arbitrator and the fees and expenses of the neutral arbitrator
shall be shared equally by Methanex and Terra, provided, however, the Arbitration Panel
may assess such fees and expenses in the manner it deems appropriate in connection with
its decision;
	 
	 	(d)	 	During the arbitration of the dispute, each Party shall make available to the
Arbitration Panel and to the other Party all books, records and other information
within its control as reasonably requested by the other Party or requested by the
Arbitration Panel subject to the confidentiality provisions contained herein, and
provided that no such access shall waive or preclude any objection to such production
based on any privilege recognized by Law. Recognizing the express desire of each Party
for an expeditious means of dispute resolution, the Arbitration Panel may limit the
scope of discovery between each Party as may be reasonable under the circumstances;
	 
	 	(e)	 	In deciding the substance of each Party’s claims, the Laws of the State of New
York shall govern the construction, interpretation and effect of this Agreement
(including this Subsection 13.3) without giving effect to any conflict of law
principles;

18

 

	 	(f)	 	The arbitration hearing shall be commenced promptly and conducted
expeditiously, with each Party involved in the dispute being allocated an equal amount
of time for the presentation of its case. Unless otherwise agreed to by each Party or
ordered by the Arbitration Panel, the arbitration hearing shall be conducted on
consecutive days. Time is of the essence in the arbitration proceeding, and the
Arbitration Panel shall have the right and authority to issue monetary sanctions
against any Party if, upon a showing of good cause, that Party is unreasonably delaying
the proceeding. To the fullest extent permitted by Law, the arbitration proceedings
and award shall be maintained in confidence by the Arbitration Panel and each Party;
and
	 
	 	(g)	 	The Arbitration Panel shall decide all disputes and all substantive and
procedural issues related thereto, and shall enforce this Agreement in accordance with
its terms. Without limiting the generality of the previous sentence, the Arbitration
Panel shall have the authority to issue injunctive relief; however, the Arbitration
Panel shall not have any power or authority to: (i) award consequential, indirect or
incidental damages (other than in Subsection 13.3(f) above), or punitive damages; or
(ii) amend this Agreement. The Arbitration Panel shall render the arbitration award in
writing following the completion of the arbitration hearing, setting forth the reasons
for the award. In the event that the Arbitration Panel awards monetary damages in
favour of either Party, the Arbitration Panel must certify in the award that no
consequential, indirect or incidental damages (except as specifically set forth under
the terms of this Agreement), punitive damages are included in such award. If the
Arbitration Panel’s decision results in a monetary award, interest to be granted such
award, if any, and the rate of such interest shall be determined by the Arbitration
Panel in their discretion. The arbitration award shall be final and binding on each
Party, and judgment thereon may be entered in any court of competent jurisdiction, and
may not be appealed except to the extent permitted by the Federal Arbitration Act.

13.4 Interim Relief. Each Party may, by summary proceedings (e.g., a plea in abatement or motion
to stay further proceedings), bring any action in any court of competent jurisdiction to (i) compel
arbitration of any dispute; (ii) obtain interim measures of protection pending arbitration of any
dispute, to preserve the status quo pending resolution of the dispute, to prevent the destruction
of documents and other information or things related to the dispute or to prevent the transfer,
dissipation or hiding of assets; or (iii) enforce any decision of the Arbitration Panel, including
the final award. The bringing of any such action shall not be deemed incompatible with the
provisions of this Section 13 or a waiver of a Party’s right to arbitrate. Either Party who fails
or refuses to submit to binding arbitration following a lawful demand by the other Party shall bear
all costs and expenses incurred by such other Party in compelling arbitration of such dispute.

13.5 Continuing Obligations. Each of the Parties shall continue to perform its obligations under
this Agreement at all times during which any disputes are the subject of the dispute resolution
procedures of this Section 13.

19

 

     14. MISCELLANEOUS

14.1 Relationship of Parties. Neither this Agreement, nor the performance of the Parties under
this Agreement, creates between Methanex and Terra, the relationship of principal and agent,
partners, joint ventures or any legal relationship, other than that of supplier of methanol.

14.2 Notices. Any and all notices, requests or other communications hereunder shall be given in
writing and delivered by courier, personal delivery or facsimile, to the Parties at the following
addresses or numbers:

	 	(i)	 	if to Terra, to:
	 
	 	 	 	BMC Holdings, Inc.

600 Fourth Street

Sioux City, Iowa

USA

Attn. General Counsel

Facsimile No.. (712) 233-5586
	 
	 	(ii)	 	if to Methanex:
	 
	 	 	 	Methanex Methanol Company

15301 Dallas Parkway, Suite 900

Addison, Texas

USA

Attn. Director, North American Marketing and Logistics

Facsimile No.. (972) 702-0910
	 
	 	(iii)	 	with a copy to :
	 
	 	 	 	Methanex Corporation

1800 Waterfront Centre

200 Burrard Street

Vancouver, British Columbia

Attn. General Counsel

Facsimile No.. 604-661-2602

or at such other address or number as shall be designated by a Party in a notice to the other
Parties given in accordance with this Subsection 14.2. Except as otherwise provided in this
Agreement, all such communications shall be deemed to have been duly given, in the case of a notice
delivered by courier or by hand, when personally delivered and in the case of a notice sent by
facsimile, upon transmittal and acknowledgement of receipt by the recipients fax machine, subject
to telephone confirmation of receipt.

14.3 Counterparts. This Agreement may be executed by the Parties in any number of counterparts,
each of which shall be deemed an original instrument, but all of which when delivered, by facsimile
or otherwise, shall constitute but one and the same Agreement.

20

 

14.4 Benefit and Burden. This Agreement shall enure to the benefit of, and shall be binding upon,
the Parties and their respective successors and permitted assigns.

14.5 Amendments and Waiver. No amendment, modification, restatement or supplement of this
Agreement shall be valid unless the same is in writing and signed by the Parties. No waiver of any
provision of this Agreement shall be valid unless in writing and signed by the Party against whom
that waiver is sought to be enforced. No failure or delay on the part of either Party in
exercising any right, power or privilege hereunder, and no course of dealing among the Parties,
shall operate as a waiver of any right, power or privilege hereunder. No single or partial
exercise of any right, power or privilege hereunder shall preclude any other or further exercise
thereof or the exercise of any other right, power or privilege hereunder. No notice to or demand
on either Party in any case shall entitle such Party to any other or further notice or demand in
similar or other circumstances or constitute a waiver of the rights of either Party to any other or
further action in any circumstances without notice or demand.

14.6 Assignment. Neither this Agreement nor any right, interest or obligation hereunder may be
assigned by a Party without the prior written consent of the other Party hereto and any attempt to
do so shall be null and void. A change of control of a Party or the sale by a Party of all or
substantially all of the assets or undertaking, shall be deemed to be an assignment under this
Subsection 14.6. For the purposes of this Agreement, “change of control” shall mean the change in
ownership of at least 50% of the outstanding shares in the capital of a Party or the change in the
ability to control or direct the management of such entity. In the event of an assignment of this
Agreement, the assigning Party shall not be released from any of its liabilities or obligations
hereunder. In the event of any permitted assignment of this Agreement by either Party, the
designated assignee shall assume, in writing (in form and substance reasonably satisfactory to the
other Party), the rights and obligations of the assigning Party under this Agreement.

14.7 Severability. Should any clause, sentence, paragraph, Subsection or Section of this Agreement
be judicially declared to be invalid, unenforceable or void, such decision shall not have the
effect of invalidating or voiding the remainder of this Agreement, and the Parties agree that the
part or parts of this Agreement so held to be invalid, unenforceable or void shall be deemed to
have been stricken herefrom as if such stricken part or parts had never been included herein.

14.8 Applicable Law. This Agreement and the rights and obligations of the Parties hereunder shall
be governed by and construed in accordance with the Laws of the State of New York, without giving
effect to the conflict of law principles thereof.

14.9 Expenses. Except as otherwise expressly provided in this Agreement, each Party shall pay its
own expenses incident to this Agreement, including all legal and accounting fees and disbursements.

14.10 Responsible Care®. With respect to the operation of the Beaumont Facility, Terra shall
comply with the applicable principles and codes of practice of the Responsible Care® initiatives in
existence as of the date of execution of this Agreement as established by the American Chemistry
Council or such principles and codes of practice that are the same or substantially similar to such
Responsible Care® initiatives. Methanex may conduct assessments

21

 

of the Beaumont Facility in accordance with principles or codes of practice upon providing 90 days
written notice to Terra of its intent to conduct an assessment. After having conducted an
assessment of the Beaumont Facility if Methanex is of the opinion, acting reasonably, that the
Beaumont Facility is not operating in accordance with the principles and codes of practice of
Responsible Care® initiatives or such codes of practice that are the same or substantially similar
to such Responsible Care® initiatives then, upon the request of Methanex, the Parties shall meet
and Terra shall cooperate with Methanex in using reasonable efforts to implement corrective steps
to bring the Beaumont Facility into compliance with such principles and codes of practice.

14.11 Entire Agreement. This Agreement sets forth all of the promises, agreements, conditions,
understandings, warranties and representations between the Parties with respect to the matters
contemplated hereby, and supersedes all prior agreements, arrangements and understandings between
the Parties with respect to the matters contemplated hereby, whether written, oral or otherwise,
including the Confidentiality Agreement. There are no promises, agreements, conditions,
understandings, warranties or representations, oral or written, express or implied, between the
Parties concerning the subject matter hereof except as set forth herein.

[SIGNATURE PAGE TO FOLLOW]

22

 

     IN WITNESS WHEREOF the parties have executed this Agreement as of the day and year written
below.

TERRA INDUSTRIE INC.

	 	 	 	 	 
	By:

	 	/s/ Douglas M. Stone
 

Authorized Signatory
	 	 
	 
	 	 	 	 
	 

	 	Douglas M. Stone	 	 
	 

	 	 	 	 
	 

	 	Printed Name	 	 
	 
	 	 	 	 
	 

	 	Sup, Sales & Marketing	 	 
	 

	 	 	 	 
	 

	 	Title	 	 
	 
	 	 	 	 
	 

	 	12/11/08	 	 
	 

	 	 	 	 
	 

	 	Date	 	 
	 
	 	 	 	 
	BMC HOLDINGS, INC.	 	 
	 
	 	 	 	 
	By:

	 	/s/ John W. Huey	 	 
	 

	 	 	 	 
	 

	 	Authorized Signatory	 	 
	 
	 	 	 	 
	 

	 	John W. Huey	 	 
	 

	 	 	 	 
	 

	 	Printed Name	 	 
	 
	 	 	 	 
	 

	 	Vice President	 	 
	 

	 	 	 	 
	 

	 	Title	 	 
	 
	 	 	 	 
	 

	 	12/11/08	 	 
	 

	 	 	 	 
	 

	 	Date	 	 
	 
	 	 	 	 
	METHANEX METHANOL COMPANY, by its

Managing Partner, Methanex Gulf Coast, Inc.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Vanessa James	 	 
	 

	 	 	 	 
	 

	 	Authorized Signatory	 	 
	 
	 	 	 	 
	 

	 	Vanessa James	 	 
	 

	 	 	 	 
	 

	 	Printed Name	 	 
	 
	 	 	 	 
	 

	 	VP	 	 
	 

	 	 	 	 
	 

	 	Title	 	 
	 
	 	 	 	 
	 

	 	2 December 2008	 	 
	 

	 	 	 	 
	 

	 	Date	 	 

23

 

	 	 	 	 	 
	By:

	 	/s/ Tangela Blain	 	 
	 

	 	 	 	 
	 

	 	Authorized Signatory	 	 
	 
	 	 	 	 
	 

	 	Tangela Blain	 	 
	 

	 	 	 	 
	 

	 	Printed Name	 	 
	 
	 	 	 	 
	 

	 	VP	 	 
	 

	 	 	 	 
	 

	 	Title	 	 
	 
	 	 	 	 
	 

	 	12/02/08	 	 
	 

	 	 	 	 
	 

	 	Date	 	 

24

 

SCHEDULE A

DEFINITIONS

     “AAA” has the meaning set forth in Subsection 13.3(a).

     “Actual Closing Inventory” has the meaning set forth in Subsection 6.3.

     “Affiliate” means, with respect to any Person, any other Person that directly or indirectly,
through one or more intermediaries, controls, is controlled by or is under common control with such
Person. The term “control” (including, with correlative meaning, the terms “controlling”,
“controlled by” and “under common control with”) means the possession, directly or indirectly, of
the power to direct or cause direction of the management and policies of a Person, whether through
the ownership of voting securities, by contract or otherwise;

     “Agreement” has the meaning set forth on page 1.

     “Aggregate Contract Volume” has the meaning set forth in Subsection 6.2.

     “Amended Offer” has the meaning set forth in Subsection 6.6.

     “Arbitration Panel” has the meaning set forth in Subsection 13.3(a).

     “Asset Purchase Agreement” has the meaning set forth in Recital B.

     “Barge Order” has the meaning set forth in Subsection 2(f) of Schedule B.

     “Beaumont Facility” means the methanol manufacturing facility, located in Jefferson County,
Texas, including, without limitation, all real property, buildings and fixtures and all other
tangible property used in the operation of the Beaumont Facility or otherwise located or on the
Beaumont Facility, including without limitation, the Beaumont Storage Tanks and the Beaumont Slip.

     “Beaumont Premium” has the meaning set forth in Subsection 6.2.

     “Beaumont Slip” means a barge docking facility located at the Beaumont Facility, for loading
and unloading methanol, owned wholly by BMC Holdings and all related improvements and equipment,
including, without limitation, pumps, hoses, pipelines, and any and all other equipment or assets
used to load or unload methanol.

     “Beaumont Storage Tanks” means the three methanol storage tanks located at the Beaumont
Facility as follows: (i) two methanol storage tanks each with a storage capacity of 22,000 metric
tonnes; and (ii) one methanol storage tank with a storage capacity of 4,000 metric tonnes.

     “BMC Holdings” means BMC Holdings Inc.

     “Business Day” means any day other than Saturday, Sunday or a legal holiday in the State of
Texas.

A-1

 

     “Claims” means any and all rights, claims, counterclaims, complaints, disputes, demands,
causes of action, liabilities, obligations, damages, losses, legal fees, costs, expenses, and
disbursements of any nature or kind, whatsoever and howsoever arising, whether known or unknown,
whether in law or in equity or pursuant to statute, and whether in any court of law or equity or
before any arbitrator or other body, board or tribunal.

     “Confidential Information” means information that either Party hereto furnishes to the other
Party or to an agent or representative of such other Party in connection with this Agreement on a
confidential basis or which relates to its manufacturing processes, its sales and marketing
activity or environmental or safety matters, but does not include any such information that is or
becomes generally available to the public other than as a result of a breach by such other Party or
its agent or representative or that is or that becomes available to such other Party or its agent
or representative from a source that is not, to the best of such other Party’s or such other
Party’s agent’s or representative’s knowledge, acting in violation of a confidentiality agreement
with the Party originally furnishing such information or that such other Party can demonstrate on
the basis of written records was already known by it on a non-confidential basis prior to receipt
from the Party furnishing such information.

     “Contract Price” has the meaning set forth in Subsection 6.2.

     “Disclosing Party” has the meaning set forth in Subsection 12.1.

     “Dispute Notice” has the meaning set forth in Subsection 13.3(a).

     “DuPont” means E.I. DuPont De Nemours and Company.

     “DuPont Agreement” means the agreement between DuPont and Beaumont Methanol Corporation dated
as of December 12, 1991, extracts of which are attached at Schedule E to this Agreement, and shall
only include amendments to the DuPont Agreement that have been provided by Terra to Methanex prior
to the Parties entering into this Agreement.

     “DuPont Wharf” means the existing wharf facility located adjacent to the Beaumont Facility,
and owned and operated by DuPont and all related improvements and equipment, including, without
limitation, pumps, hoses, pipelines, and any and all other equipment or assets used to load or
unload methanol.

     “Environmental Claims” means any and all administrative, regulatory or judicial actions,
suits, demands, demand letters, claims, liens, notices of noncompliance or violation,
investigations, Proceedings, consent orders or consent agreements relating in any way to any
Environmental Law or any Environmental Permit, including, without limitation, (a) any and all
claims by Governmental Authorities for enforcement, cleanup, removal, response, remedial or other
actions or damages pursuant to any applicable Environmental Law or Environmental Permit and (b) any
and all claims by any third party seeking damages, contribution, indemnification, cost recovery,
compensation or injunctive relief to the extent resulting from the presence of or exposure to
Hazardous Substances or arising from alleged injury or threat of injury to the environment.

     “Environmental Costs and Liabilities” means all costs, expenses, losses and liabilities of any
nature (including, but not limited to, liabilities arising out of Environmental Claims)

A-2

 

associated with contamination of the air, surface water, soil or ground water by Hazardous
Substances or human exposure to Hazardous Substances or arising under any Environmental Law or
Environmental Permit.

     “Environmental Laws” includes any federal, state, municipal, county, district or local Laws,
regulations, orders, bylaws, rules, codes, standards, guidelines, protocols, Environmental Permits
and other lawful requirements of any Governmental Authority, principles of common law and equity
and all judicial and administrative decisions, orders and decrees that relate in any way to the
environment, environmental assessment, health, occupational health and safety, Hazardous Substances
(including, without limitation, the storage, manufacture, processing, labelling, disposal,
treatment, generation, use, transport, handling, remediation or Release of Hazardous Substances),
product liability or the environmental conditions on, under or about the Beaumont Facility, the
DuPont Wharf and the Facility Pipelines (including, without limitation, soil, sediments, surface
water, groundwater and indoor and ambient air conditions) in effect at any time prior to the date
of this Agreement or at the date of this Agreement or at any time after the date of this Agreement.

     “Environmental Permits” includes all permits, licences, approvals, consents, authorizations,
registrations, privileges, exemptions, waivers, variations, clearances, orders, certificates,
rulings and other concessions under any Environmental Laws.

     “Event of Force Majeure” means, for any Person, any event, circumstance or condition that is
beyond the control of such Person and that prevents such Person from performing, in whole or in
part, its obligations under this Agreement. Without limiting the generality of the foregoing, the
following occurrences shall be deemed to be Events of Force Majeure: (a) Acts of God, fire,
explosion, accident, flood, storm or other natural phenomenon; (b) war (whether declared or
undeclared), riot, blockade, sabotage or acts of public enemies; (c) national defense requirements;
(d) compliance with any Law, rule, regulation or Governmental Order that (x) becomes effective
after the date hereof and (y) is binding on the Person seeking to rely on such Law, rule,
regulation or Governmental Order to excuse performance and such Person’s compliance therewith is
not voluntary or optional; (e) strikes, lockouts or injunctions (it being understood that nothing
herein shall require a Person to settle such or any other kind of labor dispute except on such
terms as shall be satisfactory to such Person); (f) unavailability (for reasons other than the cost
thereof) of adequate fuel, power, raw materials, labor, containers or transportation facilities;
and (g) breakage or failure of machinery or equipment.

     “Extension Notice” has the meaning set forth in Subsection 3.2.

     “Facility Assets” means any and all assets relating to the production, handling, loading, or
unloading of methanol or otherwise relating to methanol located at the Beaumont Facility or the
DuPont Wharf including, without limitation, buildings and fixtures, leasehold improvements,
Beaumont Storage Tanks, Beaumont Slip, and all related improvements and equipment, including,
without limitation, pumps, hoses, pipelines, and any and all other equipment or assets used in
connection with methanol or otherwise to operate the Beaumont Facility, the DuPont Wharf or the
Facility Pipelines.

A-3

 

     “Facility Pipelines” means the entire pipeline system that connects the DuPont Wharf to the
Beaumont Facility including, without limitation, all equipment used by DuPont, Terra or any other
Person, in the operation of such pipeline system, in the ordinary course.

     “FOB” has the meaning given to such term in the standardized definitions relating to the
import and export of goods published by the International Chamber of Commerce, as revised in 2000.

     “Gallons” means the United States unit of liquid volume.

     “Governmental Authority” means: (i) any government; (ii) any federal, state, county, province,
city, town, municipality, local or other political subdivision thereof or thereto; (iii) any court,
tribunal, department, commission, board, bureau, instrumentality, agency, council, arbitrator or
other entity exercising executive, legislative, judicial, regulatory or administrative functions of
or pertaining to government; and (iv) any other governmental entity, agency or authority having or
exercising jurisdiction over any relevant Person, item or matter.

     “Governmental Order” means any order, writ, judgment, injunction, decree, stipulation,
determination or award entered by or with any Governmental Authority.

     “Hazardous Substances” includes radioactive materials; asbestos and asbestos-containing
materials; urea formaldehyde; hydrocarbons; underground and aboveground tanks; lead; pollutants;
polychlorinated biphenyls (“PCBs”) and PCB-containing equipment; flammable substances;
contaminants; deleterious substances; dangerous substances and goods; hazardous, corrosive and
toxic substances, materials, constituents, compounds, recyclables, chemicals (including, without
limitation, petroleum, gasoline or associated products or any by-products or fractions thereof);
radon gas; waste; special waste; pesticides; defoliants; explosives; any solid, liquid, gas, vapor,
odour, heat, sound, vibration, radiation or combination of any of them the storage, manufacture,
processing, labelling, disposal, treatment, generation, use, transport, handling, remediation or
Release into the environment of which is prohibited, controlled or regulated under Environmental
Laws or Environmental Permits or which may or could pose a hazard to the environment.

     “Hours of Operation” means, for any Service, the days and times during which Terra is required
to provide such Service to Methanex, which shall be 24 hours a day, seven days a week, unless
otherwise specified in writing by the Parties.

     “Indemnified Party” has the meaning set forth in Subsection 11.4.

     “Indemnifing Party” has the meaning set forth in Subsection 11.4.

     “Independent Auditor” has the meaning set forth in Subsection 7.7(b).

     “Initial Term” has the meaning set forth in Subsection 3.2.

     “Inventory” has the meaning set forth in Subsection 6.1.

     “Inventory Price” has the meaning set forth in Subsection 6.3.

A-4

 

     “Law” means all laws, statutes, rules, regulations, ordinances, orders, writs, injunctions or
decrees and other pronouncements having the effect of law of any Governmental Authority.

     “LIBOR” means London InterBank Offered Rate.

     “MNDRP” means the Methanex Non-Discounted Reference Price, which is the market index price per
Gallon of methanol determined and published by Methanex Corporation on a monthly basis.

     “Material Contracts” means the DuPont Agreement and any other contract (in writing or oral)
between Terra and a third party or Affiliate, the performance of which is necessary for Terra to
provide the Services (and each Service under this Agreement).

     “Methanex” means Methanex Methanol Company.

     “Methanex Entity” has the meaning set forth in Subsection 8.1(b).

     “Methanol” means the chemical grade methanol meeting the Specifications.

     “Methanex Indemnified Persons” has the meaning set forth in Subsection 11.3.

     “Monthly MMC Price” has the meaning set forth in Subsection 6.2.

     “Offer” has the meaning set forth in Subsection 6.6.

     “Offer Period” has the meaning set forth in Subsection 6.6.

     “Operational” means the Beaumont Facility shall be deemed operational unless and until
Methanex exercises its Extended Suspension right as set forth in Subsection 5.3.3 of the Asset
Purchase Agreement.

     “Parties” means Terra Industries, BMC Holdings and Methanex, and “Party” means any of Terra
Industries, BMC Holdings and Methanex.

     “Person” means any individual, sole proprietorship, general partner of a general or limited
partnership, partnership, joint venture, trust, incorporated organization, association,
corporation, institution, party, entity or Governmental Authority, including any instrumentality,
division, body, agency or department thereof.

     “Pipeline Customers” means those customers of Methanex, or its Affiliate to whom Methanex
supplies methanol using the Facility Pipelines.

     “Pipeline Customer Contracts” means the contractual arrangement (in writing or oral) between
Methanex and each Pipeline Customer, as may be amended.

     “Pipeline Services” has the meaning set forth in Section 4 of Schedule B.

     “Pipeline Order” has the meaning set forth in Subsection 4(i) of Schedule B.

A-5

 

     “Proceedings” means any and all actions, suits, proceedings, and hearings of any nature and
kind in any court of law or equity or before any arbitrator or other body, board or tribunal.

     “Recipient” has the meaning set forth in Subsection 12.1.

     “Records” has the meaning set forth in Subsection 7.7(a).

     “Record Retention Period” has the meaning set forth in Subsection 7.7(a).

     “Reduction Notice” has the meaning set forth in Subsection 2.3.

     “Release” has the meaning prescribed in any Environmental Law and includes, without
limitation, any release, spill, leak, pumping, pouring, emission, emptying, discharge, injection,
escape, leaching, disposal, dumping, deposit, spraying, burial, abandonment, incineration, seepage
and placement.

     “Renewal Terms” has the meaning set forth in Subsection 3.2.

     “Service” means the furnishing, supply, distribution and delivery of each service set forth in
Schedule B hereto to be provided by or on behalf of Terra to Methanex pursuant to the terms and
conditions of this Agreement.

     “Service Fees” has the meaning set forth in Subsection 7.2.

     “Slip Services” has the meaning set forth in Section 2 of Schedule B.

     “Specifications” are as set forth in Schedule C.

     “Storage Services” has the meaning set forth in Section 3 of Schedule B.

     “Supply Right” has the meaning set forth in Subsection 6.6.

     “Temporary Service Suspension” has the meaning set forth in Subsection 4.1.

     “Term” means the Initial Term and any Renewal Term, as the case may be.

     “Termination Date” has the meaning set forth in Subsection 6.1;

     “Terra” means Terra Industries Inc. and BMC Holdings Inc., together.

     “Terra Indemnified Persons” has the meaning set forth in Subsection 11.2.

     “Terra Industries” means Terra Industries Inc.

     “Third Party Claim” has the meaning set forth in Subsection 11.4.

     “Vessel Order” has the meaning set forth in Subsection 1(f) of Schedule B.

     “Wharf Services” has the meaning set forth in Section 1 of Schedule B.

A-6

 

     “Year” means a calendar year.

A-7

 

SCHEDULE B

SERVICES

1. WHARF SERVICES

Subject to the provisions of the Agreement, during the Initial Term and any Renewal Term, if
applicable, Terra shall provide the following wharf services (the “Wharf Services”) to Methanex:

	(a)	 	Access to DuPont Wharf: Methanex, and its agents, shall have access to the DuPont Wharf and
related facilities for the purpose of loading, off-loading Methanol and for shipping Methanol
to and from the Beaumont Storage Tanks.

	(b)	 	Loading/Unloading Rates: Terra shall load and unload vessels and/or barges that are
dispatched to the DuPont Wharf by Methanex, or its agents, subject to the Beaumont Vessel
Docking Rules set forth in Attachment A of the DuPont Agreement. The Methanol loading and
unloading rates at the DuPont Wharf shall be as follows:

	 	 	 	Vessel Loading and Discharge Rates: Minimum capability of 1,000
metric tonnes per hour

	 	 	 	Barge Loading and Discharge Rates: Minimum capability of 300 metric
tonnes per hour

	 	 	Methanex shall not have any responsibility or liability whatsoever, for any costs or
expenses incurred by Terra or DuPont in order for DuPont and Terra to achieve the Vessel
Loading and Discharge Rates and Barge Loading and Discharge Rates set forth above.

	(c)	 	Maintenance of Wharf Equipment: Terra shall, subject to the terms of the DuPont Agreement,
ensure that regular maintenance and extraordinary maintenance, as may be required from time to
time, is carried out on all Methanol specific wharf equipment such that the Methanol specific
wharf equipment is, at all times, in good repair.

	(d)	 	Quantity: The maximum annual volume of Methanol shipped through the DuPont Wharf shall be
175,000,000 Gallons. The maximum monthly volume of Methanol shipped through the DuPont Wharf
shall be 25,000,000 Gallons. Notwithstanding the foregoing, upon the request of Methanex,
Terra shall use all commercially reasonable efforts to load and off-load greater quantities of
Methanol than described above, having due consideration to DuPont Wharf conditions and other
DuPont Wharf usage.

	(e)	 	Quality: Methanex, or its agents, shall deliver Methanol to the DuPont Wharf that meets the
Specifications. Terra shall ensure that from and after the time of delivery of the Methanol
at the Dupont Wharf, the Methanol shall meet the Specifications. The quality of the Methanol
may be verified by an independent surveyor of Chemical and Petrochemical Inspections Inc. or
such other independent surveyors as agreed upon by Methanex, DuPont and Terra. Terra shall
use its best efforts to assist Methanex in obtaining DuPont’s approval to have other
independent surveyors perform survey

B-1

 

	 	 	services at the DuPont Wharf and/or Beaumont Slip.

	(f)	 	Scheduling: Terra shall load or unload Methanol shipped to the DuPont Wharf via vessel or
barge as instructed by Methanex in writing (“Vessel Order”). Vessel Orders shall include the
vessel name, quantity of Methanol, estimated time of arrival, agent’s name, surveyor, order
numbers and other pertinent information. Terra and Methanex shall coordinate the Vessel
Orders to ensure efficient operations of the Beaumont Facility and the DuPont Wharf. Vessel
Orders and any and all communications between the Parties concerning any Vessel Order shall be
provided via express.methanex.com or using such other methods as determined by Methanex.

	(g)	 	Hours of Operation: 24 hours per day; 7 days per week.

	(h)	 	Title and Risk of Loss: The title to the Methanol shall at all times remain with Methanex.
The risk of loss in the Methanol shall transfer from Methanex to Terra at the point when the
Methanol passes the outlet or inlet flange, as applicable, of the vessel or barge, as the case
may be.

	(i)	 	Demurrage Costs: Terra shall reimburse. Methanex for any and all demurrage costs incurred
due to Terra’s inability to provide the Wharf Services in particular, the loading and
discharge rates set forth in Subsection 1 (b) above. Such demurrage costs will be determined
as per the applicable charter party agreement in respect of any vessel or barge subject to
demurrage costs. Methanex shall provide to Terra, any and all relevant documentation in
respect of any claim by Methanex for reimbursement of demurrage costs under this Section.

	(j)	 	Reporting Requirements: Terra will provide to Methanex on a daily basis via
express.methanex.com or other means agreeable to Methanex an activity report indicating the
volume loaded and discharged via vessels, barges and pipeline on an individual transaction
basis. Terra will also report any Methanol lost due to contamination or improper handling by
Terra and include in these reports as Methanol lost.

2. BEAUMONT SLIP SERVICES

Subject to the provisions of the Agreement, during the Initial Term and any Renewal Term, if
applicable, Terra shall provide the following Beaumont Slip services (the “Slip Services”) to
Methanex:

	(a)	 	Access to Beaumont Slip: Methanex, and its agents, shall have access to the Beaumont
Slip and related facilities for the purpose of loading, off-loading Methanol and for shipping
Methanol to and from the Beaumont Storage Tanks.

	(b)	 	Loading/Unloading Rates: Terra shall load and unload barges that are dispatched to the
Beaumont Slip by Methanex, or its agents. The Methanol loading and unloading rates at the
Beaumont Slip shall be as follows:

	 	 	 	Barge Loading and Discharge Rates: Minimum capability of 300 metric
tonnes per hour

B-2

 

	 	 	Methanex shall not have any responsibility or liability whatsoever, for any costs or
expenses incurred by Terra or DuPont in order for DuPont and Terra to achieve the
Barge Loading and Discharge Rates set forth above.

	(c)	 	Maintenance of Beaumont Slip Equipment: Terra shall ensure that regular maintenance and
extraordinary maintenance, as may be required from time to time, is carried out on all
Beaumont Slip equipment such that the Beaumont slip equipment is, at all times, in good
repair.

	(d)	 	Quantity: The maximum annual throughput volume of Methanol through the Beaumont Slip shall be
175,000,000 Gallons. The maximum monthly throughput volume of Methanol through the Beaumont
Slip shall be 25,000,000 Gallons. Notwithstanding the foregoing, upon the request of Methanex
Terra shall use all commercially reasonable efforts to load and off-load greater quantities of
Methanol than described above, having due consideration to Beaumont Slip conditions and other
Beaumont Slip usage.

	(e)	 	Quality: Methanex, or its agents, shall deliver Methanol to the Beaumont Slip that meets the
Specifications. Terra shall ensure that from and after the time of delivery of the Methanol
at the Beaumont Slip, the Methanol shall meet the Specifications. The quality of the Methanol
may be verified by an independent surveyor of Chemical and Petrochemical Inspections Inc. or
such other independent surveyors as agreed upon by Methanex, DuPont and Terra. Terra shall
use its best efforts to assist Methanex in obtaining DuPont’s approval to have other
independent surveyors perform survey services at the Beaumont Slip.

	(f)	 	Scheduling: Terra shall load or unload Methanol shipped to the Beaumont Slip via barge as
instructed by Methanex in writing (“Barge Order”). Barge Orders shall include the name of the
barge company, quantity of Methanol, estimated time of arrival, agent’s name, surveyor, order
numbers and other pertinent information. Terra and Methanex shall coordinate the Barge Orders
to ensure efficient operations of the Beaumont Facility and the Beaumont Slip. Barge Orders
and any and all communications between the Parties concerning any Barge Order shall be
provided via express.methanex.com or using such other methods as determined by Methanex.

	(g)	 	Hours of Operation: 24 hours per day; 7 days per week.

	(h)	 	Title and Risk of Loss: The title to the Methanol shall at all times remain with Methanex.
The risk of loss in the Methanol shall transfer from Methanex to Terra at the point when the
Methanol passes the outlet or inlet flange, as applicable, of the barge.

	(i)	 	Demurrage Costs: Terra shall reimburse Methanex for any and all demurrage costs incurred due
to Terra’s inability to provide the Slip Services in particular, the loading and discharge
rates set forth in Subsection 2(b) above. Such demurrage costs will be determined as per the
applicable charter party agreement in respect of any barge subject to demurrage costs.
Methanex shall provide to Terra, any and all relevant documentation in respect of any claim by
Methanex for reimbursement of demurrage costs under this Section.

B-3

 

	(j)	 	Reporting Requirements: Terra will provide to Methanex on a daily basis via
express.methanex.com or other means agreeable to Methanex an activity report indicating the
volume loaded and discharged via barges on an individual transaction basis. Terra will also
report any Methanol lost due to contamination or improper handling by Terra and include in
these reports as Methanol lost.

3. STORAGE SERVICES

Subject to the provisions of the Agreement, during the Initial Term and any Renewal Term, if
applicable, Terra shall provide the following storage services (the “Storage Services”) to
Methanex:

	(a)	 	Beaumont Storage Tanks: Terra shall provide Beaumont Storage Tanks, which shall be dedicated
to sole use by Methanex. The Methanol stored in the Beaumont Storage Tanks shall not be
commingled with any other methanol or materials other than the Methanol stored by Methanex or
produced by Terra for Methanex, pursuant to the Asset Purchase Agreement.

	 	 	 	 	 	 	 
	Tanks	 	Capacity	 	Est. Safe Fill	 	Est. Heel
	Shore Tank #1

	 	7.5 million Gallons
	 	7 million Gallons
	 	300,000 Gallons
	Shore Tank #2

	 	7.5 million Gallons
	 	7 million Gallons
	 	300,000 Gallons
	Shore Tank #3

	 	1.2 million Gallons
	 	1.1 million Gallons
	 	75,000 Gallons

	(b)	 	Inventory Measurements: For inventory purposes, the amount of Methanol placed in the Beaumont
Storage Tanks from vessels or barges shall be determined by an independent surveyor selected
by Methanex, in its sole discretion, from among the surveyors listed in Subsection 3(d) below,
at time of unloading. The amount of Methanol delivered out of the Beaumont Storage Tanks
shall be determined from certified meter readings when delivered via pipeline and by
independent surveyor shore tank surveys when loaded into barges or vessels.
	 
	(c)	 	Maintenance of Beaumont Storage Tanks: Terra shall ensure that regular maintenance and
extraordinary maintenance, as may be required from time to time, is carried out on the
Beaumont Storage Tanks and all related equipment such that, at all times, the Beaumont Storage
Tanks and related equipment shall be in good repair.
	 
	(d)	 	Quality: The quality of the Methanol delivered to Terra and discharged into the Beaumont
Storage Tanks shall be verified by an independent surveyor of Chemical and Petrochemical
Inspections Inc. or such other independent surveyors as agreed by Methanex, DuPont and Terra.
Terra shall use its best efforts to assist Methanex in obtaining DuPont’s approval to have
other independent surveyors perform survey services at the Beaumont Facility.
	 
	(e)	 	Scheduling: Terra shall manage the loading and off-loading of barges at the Beaumont Slip.
Terra and Methanex shall cooperate in scheduling barge shipments in and out of the

B-4

 

	 	 	Beaumont Slip.

	(f)	 	Hours of Operation: 24 hours per day; 7 days per week.
	 
	(g)	 	Title and Risk of Loss: The title to the Methanol shall at all times remain with Methanex.
The risk of loss in the Methanol shall remain with Terra at all times while Terra has control
of the Methanol including, without limitation, when the Methanol is being transferred from the
Dupont Wharf or the Beaumont Slip into the Beaumont Storage Tanks, while stored in the
Beaumont Storage Tanks, during production and while being transferred from the production
facility to and storage tank including the Beaumont Storage Tanks, and while being delivered
by Terra to the Pipeline Customers via the Facility Pipelines or other pipelines. For greater
certainty, the risk of loss shall transfer from Terra to the Pipeline Customers (on a Pipeline
Customer by Pipeline Customer basis) as provided for in each Pipeline Customer Contracts.
	 
	(h)	 	Contamination/Disposal Costs: Terra shall be responsible, at its own cost and expense, for
the safe and lawful removal and disposal of any and all Methanol, located at the Beaumont
Facility including, without limitation, in the Facility Pipelines, the tank lines and the
Beaumont Storage Tanks, that is or becomes contaminated. Terra shall also be responsible for
all costs of cleaning the Beaumont Storage Tanks, the Facility Pipelines and any and all
related equipment, as may be necessary, upon an occurrence of contamination. Terra shall
reimburse Methanex for the cost of such contaminated Methanol.
	 
	(i)	 	Reporting Requirements: Terra shall report any Methanol lost due to contamination or improper
handling by Terra and include in these reports as Methanol lost. By the third working day of
the month following the month of activity, Terra will provide Methanex a monthly report
indicating the beginning and ending month tank gauges and the corresponding volume and
complete list of all transaction activity in and out of the Beaumont Storage Tanks. This
monthly report will determine the quantity of Methanol gained or lost by the following
formula: (beginning month tank gauge quantity) plus (total all monthly receipts) minus (total
all monthly deliveries) minus (ending month tank gauge quantity) equals [(+) gain or (-)
loss]. The sum of all the gains and losses will not exceed 0.50% during any 12 month period.
For the volume lost in excess of 0.50% metric tonnes Terra will compensate Methanex for the
Methanol lost based on the weighted average sale purchase price earned by Methanex FOB the
facilities during the specific 12 month period. At no time during the term of this Agreement
will the price claimed by Methanex exceed $400 per metric tonne. Methanex will invoice Terra
for such losses and Terra shall reimburse Methanex for the full amount of such losses within
15 days of Terra’s receipt of such invoice.

4. FACILITY PIPELINE SERVICES

Subject to the provisions of this Agreement, during the Initial Term and any Renewal Term, if
applicable, Terra shall provide the following Facility Pipelines services (the “Pipeline Services”)
to Methanex:

	(a)	 	Operation: Any and all operational services as may be required to operate the Facility
Pipelines, including the pipelines owned and operated by DuPont, as may be required to

B-5

 

	 	 	deliver Methanol to any of the Pipeline Customers.

	(b)	 	Maintenance: Any and all maintenance services as may be required to operate the Facility
Pipelines, including the pipelines owned and operated by DuPont, as may be required to deliver
Methanol to any of the Pipeline Customers.

	(c)	 	Permitting: Any and all permitting and filing services as may be required to operate the
Facility Pipelines, including the pipelines owned and operated by DuPont, as may be required
to deliver Methanol to any of the Pipeline Customers or to Methanex, or its designees, at the
DuPont Wharf and/or the Beaumont Slip, and for complying with any and all current requirements
of the Department of Transportation and Texas Railroad Commission.

	(d)	 	Licensing: Any and all licensing services as may be required to operate the Facility
Pipelines, including the pipelines owned and operated by DuPont, as may be required to deliver
Methanol to any of the Pipeline Customers.

	(e)	 	Meter Proving: Any and all meter proving services as may be required in connection with the
Facility Pipelines, including the pipelines owned and operated by DuPont, as may be required
to deliver Methanol to any of the Pipeline Customers.

	(f)	 	Level of Pipeline Services: Prior to the execution of this Agreement, Terra delivered
methanol via various pipelines from the Beaumont Storage Tanks within the Beaumont Facility to
the Pipeline Customers. As part of the Pipeline Services provided by Terra to Methanex under
the Agreement, Terra shall continue to provide pipeline delivery services to the Pipeline
Customers in accordance with any and all instructions provided by Methanex to Terra. Terra
shall deliver the Methanol to any new customers of Methanex which customers may be accessed
via the Facility Pipelines. Any costs or expenses incurred by Terra to deliver Methanol to
customers other than the Pipeline Customers shall be for the account of Methanex.

	(g)	 	Pipeline Deliveries: Terra shall deliver Methanol to the Pipeline Customers as instructed by
Methanex in writing (“Pipeline Order”). Pipeline Orders shall include pumping time, quantity
of Methanol to be delivered, the Pipeline Customer receiving party and other pertinent
information. Terra and Methanex shall coordinate the Pipeline Orders to ensure efficient
operations of the Beaumont Facility. Pipeline Orders and any and all communications between
the Parties after the delivery of a Pipeline Order shall be provided via express.methanex.com
or such other methods as determined by Methanex.

	(h)	 	Hours of Operation: 24 hours per day; 7 days per week.

	(i)	 	Title and Risk of Loss: The title to the Methanol shall at all times remain with Methanex.
The risk of loss in the Methanol while the Methanol is passing through the Facility Pipelines
shall remain with Terra at all times. For greater certainty, the risk of loss shall transfer
from Terra to the Pipeline Customers (on a Pipeline Customer by Pipeline Customer basis) as
provided for in each Pipeline Customer Contracts.

	(j)	 	Reporting Requirements: Terra shall report any Methanol lost due to contamination or improper
handling by Terra and include in these reports as Methanol lost.

B-6

 

SCHEDULE C

SPECIFICATIONS

	 	 	 	 	 
	Test	 	Limit	 	Test Methods
	Appearance

	 	Clear & Free
	 	IMPCA 003-98
	Color Pt-Co

	 	Max 5
	 	ASTM D 1209-00
	Purity % wt on dry basis

	 	Min 99.85
	 	IMPCA 001-02
	Water % w/w

	 	Max 0.1
	 	ASTM E 1064-00
	Distillation Range At 760 mm Hg

	 	Max 1.0 C to include
64.6 + 0.1
	 	ASTM D 1078-01
	Specific Gravity 20/20°C

	 	0.791 – 0.793
	 	ASTM D 891-00 or 
ASTM D 4052-02
	Potassium Permanganate Time test
at 15C, minutes

	 	Min 60
	 	ASTM D 1363-97
	Carbonizable Substances (Sulfuric
Acid Wash Test) 
Pt-Co scale

	 	Max 30
	 	ASTM E 346-99
	Acidity as acetic acid

	 	Max 30 mg/kg
	 	ASTM D 1613-02
	Acetone

	 	Max 30 mg/kg
	 	IMPCA 001-02
	Hydrocarbons

	 	Pass
	 	ASTM D 1722-98
	Non Volatile Matter

	 	Max 8 mg/1000 mL
	 	ASTM D 1353-00
	Ethanol

	 	Max 50 mg/kg
	 	IMPCA 001-02
	Chloride as Cl-

	 	Max 0.5 mg/kg
	 	IMPCA 002-98
	Sulphur

	 	Max 0.5 mg/kg
	 	ASTM D 3961-98
	Total Iron

	 	Max 0.1 mg/kg
	 	ASTM E 394-00

C-1

 

SCHEDULE D

DUPONT WHARF ALLOCATION

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	2000	 	2001	 	2002	 	2003 Aug YTD
	 	 	Tons	 	Barges	 	Tons	 	Barges	 	Tons	 	Tons	 	Barges
	MeOH
	 	 	660769	 	 	 	274	 	 	 	606370	 	 	 	240	 	 	 	672342	 	 	 	394260	 	 	 	140	 
	Site Total
	 	 	1688723	 	 	 	815	 	 	 	1337405	 	 	 	654	 	 	 	1411567	 	 	 	999070	 	 	 	481	 
	Next year fixed %
	 	 	39.13	%	 	 	 	 	 	 	45.34	%	 	 	 	 	 	 	47.63	%	 	 	39.46	%	 	 	 	 

D-1

 

SCHEDULE E

EXTRACTS OF DUPONT AGREEMENT

(See attached)

E-1

 

SCHEDULE F

DISCLOSURE SCHEDULE

NIL

F-1exv4w1

Exhibit 4.1

Execution Version

 

UNITED AIR LINES, INC.

and

EACH OF THE GUARANTORS PARTY HERETO

9.875% SENIOR SECURED NOTES DUE 2013

 

INDENTURE

Dated as of January 15, 2010

 

The Bank of New York Mellon Trust Company, N.A.

as Trustee

and

Wilmington Trust FSB

as Collateral Trustee

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE 1

	DEFINITIONS AND INCORPORATION

	BY REFERENCE

	 
	 	 	 	 
	Section 1.01 Definitions
	 	 	1	 
	Section 1.02 Other Definitions
	 	 	36	 
	Section 1.03 Rules of Construction
	 	 	36	 
	 
	 	 	 	 
	ARTICLE 2

	THE NOTES

	 
	 	 	 	 
	Section 2.01 Form and Dating
	 	 	37	 
	Section 2.02 Execution and Authentication
	 	 	37	 
	Section 2.03 Registrar and Paying Agent
	 	 	38	 
	Section 2.04 Paying Agent to Hold Money in Trust
	 	 	38	 
	Section 2.05 Holder Lists
	 	 	39	 
	Section 2.06 Transfer and Exchange
	 	 	39	 
	Section 2.07 Replacement Notes
	 	 	49	 
	Section 2.08 Outstanding Notes
	 	 	49	 
	Section 2.09 Treasury Notes
	 	 	49	 
	Section 2.10 Temporary Notes
	 	 	49	 
	Section 2.11 Cancellation
	 	 	50	 
	Section 2.12 Defaulted Interest
	 	 	50	 
	Section 2.13 CUSIP Numbers
	 	 	50	 
	Section 2.14 Issuance of Additional Notes
	 	 	50	 
	 
	 	 	 	 
	ARTICLE 3

	REDEMPTION AND PREPAYMENT

	 
	 	 	 	 
	Section 3.01 Notices to Trustee
	 	 	51	 
	Section 3.02 Selection of Notes to Be Redeemed or Purchased
	 	 	51	 
	Section 3.03 Notice of Redemption
	 	 	51	 
	Section 3.04 Effect of Notice of Redemption
	 	 	52	 
	Section 3.05 Deposit of Redemption or Purchase Price
	 	 	52	 
	Section 3.06 Notes Redeemed or Purchased in Part
	 	 	53	 
	Section 3.07 Optional Redemption
	 	 	53	 
	Section 3.08 Mandatory Redemption
	 	 	54	 
	Section 3.09 Special Scheduled Maturity Date
	 	 	54	 
	Section 3.10 Offer to Purchase by Application of Excess Proceeds or Sale of
Collateral Consideration
	 	 	54	 
	 
	 	 	 	 
	ARTICLE 4

	COVENANTS

	 
	 	 	 	 
	Section 4.01 Payment of Notes
	 	 	56	 
	Section 4.02 Maintenance of Office or Agency
	 	 	57	 
	Section 4.03 Reports
	 	 	57	 
	Section 4.04 Compliance Certificate
	 	 	58	 
	Section 4.05 Taxes
	 	 	59	 
	Section 4.06 Stay, Extension and Usury Laws
	 	 	59	 

 

	 	 	 	 	 
	 	 	Page
	Section 4.07 Restricted Payments
	 	 	59	 
	Section 4.08 Dividend and Other Payment Restrictions Affecting Subsidiaries
	 	 	63	 
	Section 4.09 Incurrence of Indebtedness and Issuance of Preferred Stock
	 	 	65	 
	Section 4.10 Asset Sales
	 	 	70	 
	Section 4.11 Transactions with Affiliates
	 	 	75	 
	Section 4.12 Liens
	 	 	77	 
	Section 4.13 Business Activities
	 	 	77	 
	Section 4.14 Corporate Existence
	 	 	77	 
	Section 4.15 Offer to Repurchase Upon Change of Control
	 	 	77	 
	Section 4.16 Payments for Consent
	 	 	79	 
	Section 4.17 Additional Note Guarantees
	 	 	79	 
	Section 4.18 Designation of Restricted and Unrestricted Subsidiaries
	 	 	79	 
	Section 4.19 Delivery of Appraisals
	 	 	80	 
	Section 4.20 Priority Lien Debt Value Ratio
	 	 	80	 
	Section 4.21 Priority Lien Debt Value Ratio Maintenance
	 	 	81	 
	Section 4.22 Regulatory Cooperation
	 	 	82	 
	Section 4.23 Regulatory Matters; Citizenship; Utilization; Reporting
	 	 	82	 
	Section 4.24 Collateral Ownership
	 	 	84	 
	Section 4.25 Insurance
	 	 	84	 
	Section 4.26 Note Calculations
	 	 	84	 
	 
	 	 	 	 
	ARTICLE 5

	SUCCESSORS

	 
	 	 	 	 
	Section 5.01 Merger, Consolidation, or Sale of Assets
	 	 	84	 
	Section 5.02 Successor Corporation Substituted
	 	 	85	 
	 
	 	 	 	 
	ARTICLE 6

	DEFAULTS AND REMEDIES

	 
	 	 	 	 
	Section 6.01 Events of Default
	 	 	86	 
	Section 6.02 Acceleration
	 	 	88	 
	Section 6.03 Other Remedies
	 	 	88	 
	Section 6.04 Waiver of Past Defaults
	 	 	88	 
	Section 6.05 Control by Majority
	 	 	88	 
	Section 6.06 Limitation on Suits
	 	 	89	 
	Section 6.07 Rights of Holders of Notes to Receive Payment
	 	 	89	 
	Section 6.08 Collection Suit by Trustee
	 	 	89	 
	Section 6.09 Trustee May File Proofs of Claim
	 	 	90	 
	Section 6.10 Priorities
	 	 	90	 
	Section 6.11 Undertaking for Costs
	 	 	90	 
	 
	 	 	 	 
	ARTICLE 7

	TRUSTEE

	 
	 	 	 	 
	Section 7.01 Duties of Trustee
	 	 	91	 
	Section 7.02 Rights of Trustee
	 	 	92	 
	Section 7.03 Individual Rights of Trustee
	 	 	92	 
	Section 7.04 Trustee’s Disclaimer
	 	 	93	 
	Section 7.05 Notice of Defaults
	 	 	93	 
	Section 7.06 Compensation and Indemnity
	 	 	93	 
	Section 7.07 Replacement of Trustee
	 	 	94	 
	Section 7.08 Successor Trustee by Merger, etc
	 	 	95	 
	Section 7.09 Eligibility; Disqualification
	 	 	95	 

ii

 

	 	 	 	 	 
	 	 	Page
	ARTICLE 8

	LEGAL DEFEASANCE AND COVENANT DEFEASANCE

	 
	 	 	 	 
	Section 8.01 Option to Effect Legal Defeasance or Covenant Defeasance
	 	 	95	 
	Section 8.02 Legal Defeasance and Discharge
	 	 	95	 
	Section 8.03 Covenant Defeasance
	 	 	96	 
	Section 8.04 Conditions to Legal or Covenant Defeasance
	 	 	96	 
	Section 8.05 Deposited Money and Government Securities to be Held in Trust; Other
Miscellaneous Provisions
	 	 	97	 
	Section 8.06 Repayment to Company
	 	 	98	 
	Section 8.07 Reinstatement
	 	 	98	 
	 
	 	 	 	 
	ARTICLE 9

	AMENDMENT, SUPPLEMENT AND WAIVER

	 
	 	 	 	 
	Section 9.01 Without Consent of Holders of Notes
	 	 	98	 
	Section 9.02 With Consent of Holders of Notes
	 	 	99	 
	Section 9.03 Revocation and Effect of Consents
	 	 	101	 
	Section 9.04 Notation on or Exchange of Notes
	 	 	101	 
	Section 9.05 Trustee to Sign Amendments, etc.
	 	 	101	 
	 
	 	 	 	 
	ARTICLE 10

	NOTE GUARANTEES

	 
	 	 	 	 
	Section 10.01 Guarantee
	 	 	101	 
	Section 10.02 Limitation on Guarantor Liability
	 	 	102	 
	Section 10.03 Execution and Delivery of Note Guarantee
	 	 	103	 
	Section 10.04 Guarantors May Consolidate, etc., on Certain Terms
	 	 	103	 
	Section 10.05 Releases
	 	 	104	 
	 
	 	 	 	 
	ARTICLE 11

	SATISFACTION AND DISCHARGE

	 
	 	 	 	 
	Section 11.01 Satisfaction and Discharge
	 	 	105	 
	Section 11.02 Application of Trust Money
	 	 	106	 
	 
	 	 	 	 
	ARTICLE 12

	COLLATERAL AND SECURITY

	 
	 	 	 	 
	Section 12.01 Security Interest
	 	 	106	 
	Section 12.02 Collateral Trust Agreement
	 	 	107	 
	Section 12.03 Release of Liens in Respect of the Notes
	 	 	107	 
	Section 12.04 Collateral Trustee
	 	 	107	 
	 
	 	 	 	 
	ARTICLE 13

	MISCELLANEOUS

	 
	 	 	 	 
	Section 13.01 Notices
	 	 	108	 
	Section 13.02 Certificate and Opinion as to Conditions Precedent
	 	 	110	 
	Section 13.03 Statements Required in Certificate or Opinion
	 	 	110	 
	Section 13.04 Rules by Trustee and Agents
	 	 	110	 
	Section 13.05 No Personal Liability of Directors, Officers, Employees and
Stockholders
	 	 	110	 
	Section 13.06 Governing Law
	 	 	111	 
	Section 13.07 No Adverse Interpretation of Other Agreements
	 	 	111	 
	Section 13.08 Successors
	 	 	111	 
	Section 13.09 Severability
	 	 	111	 

iii

 

	 	 	 	 	 
	 	 	Page
	Section 13.10 Counterpart Originals
	 	 	111	 
	Section 13.11 Table of Contents, Headings, etc.
	 	 	111	 

iv

 

EXHIBITS

	 	 	 
	Exhibit A

	 	FORM OF NOTE
	Exhibit B

	 	FORM OF CERTIFICATE OF TRANSFER
	Exhibit C

	 	FORM OF CERTIFICATE OF EXCHANGE
	Exhibit D

	 	FORM OF CERTIFICATE OF ACQUIRING INSTITUTIONAL ACCREDITED
INVESTOR
	Exhibit E

	 	FORM OF NOTATION OF GUARANTEE
	Exhibit F

	 	FORM OF SUPPLEMENTAL INDENTURE

 

     INDENTURE dated as of January 15, 2010 among United Air Lines, Inc., a Delaware corporation,
the Guarantors (as defined), The Bank of New York Mellon Trust Company, N.A., as trustee and
Wilmington Trust FSB, as collateral trustee.

     The Company, the Guarantors, the Trustee (as defined) and the Collateral Trustee (as defined)
agree as follows for the benefit of each other and for the equal and ratable benefit of the Holders
(as defined) of the 9.875% Senior Secured Notes due 2013 (the “Notes”):

ARTICLE 1

DEFINITIONS AND INCORPORATION

BY REFERENCE

Section 1.01 Definitions.

     “144A Global Note” means a Global Note substantially in the form of Exhibit A hereto bearing
the Global Note Legend and the Private Placement Legend and deposited with or on behalf of, and
registered in the name of, the Depositary or its nominee that will be issued in a denomination
equal to the outstanding principal amount of the Notes sold in reliance on Rule 144A.

     “Acquired Debt” means, with respect to any specified Person:

     (1) Indebtedness, Disqualified Stock or preferred stock of any other Person existing at
the time such other Person is merged, consolidated or amalgamated with or into such
specified Person, or became a Subsidiary of such specified Person, whether or not such
Indebtedness is incurred in connection with, or in contemplation of, such other Person
merging, consolidating or amalgamating with or into, or becoming a Subsidiary of, such
specified Person; and

     (2) Indebtedness secured by a Lien encumbering any asset acquired by such specified
Person.

     “Act of Required Debtholders” means, as to any matter at any time:

     (1) prior to the Discharge of Priority Lien Obligations, a direction in writing
delivered to the Collateral Trustee by or with the written consent of the holders of more
than 50% of the sum of:

     (A) the aggregate outstanding principal amount of Priority Lien Debt (including
the face amount of outstanding letters of credit whether or not then available or
drawn); and

     (B) the aggregate unfunded commitments to extend credit which, when funded,
would constitute Priority Lien Debt;

provided, however, that after (i) the termination or expiration of all commitments to extend
credit that would constitute Priority Lien Debt, (ii) the payment in full in cash of the
principal of and interest and premium (if any) on all Priority Lien Debt (other than any
undrawn letters of credit), (iii) the discharge or cash collateralization (at the lower of
(x) 105% of the aggregate undrawn amount or (y) the percentage of the aggregate undrawn
amount required for release of Liens under the terms of the applicable Priority Lien
Document) of all outstanding letters of credit constituting Priority Lien Debt and (iv) the
payment in full in cash of all other Priority Lien Obligations other than any Priority Lien
Obligations consisting of Banking Product Obligations

1

 

and Hedging Obligations, the term “Act of Required Debtholders” will mean the holders of
more than 50% of the sum of the aggregate “settlement amount” (or similar term) (as defined
in the applicable Hedge Agreement relating to Priority Lien Obligations consisting of a
Hedging Obligation) or, with respect to any such Hedge Agreement that has been terminated in
accordance with its terms, the amount then due and payable (including any termination
payments then due) under such Hedge Agreement, under all Hedge Agreements relating to
Priority Lien Obligations consisting of Hedging Obligations; provided that the “settlement
amount” (or similar term) as of the last Business Day of the month preceding any date of
determination shall be calculated by the appropriate swap counterparties and reported to the
Collateral Trustee upon request; provided further, that any Hedging Obligation with a
“settlement amount” (or similar term) that is a negative number shall be disregarded for
purposes of all calculations required by the term “Act of Required Debtholders;” and

     (2) at any time after the Discharge of Priority Lien Obligations, a direction in
writing delivered to the Collateral Trustee by or with the written consent of the holders of
more than 50% of the sum of:

     (A) the aggregate outstanding principal amount of Junior Lien Debt (including
the face amount of outstanding letters of credit whether or not then available or
drawn); and

     (B) the aggregate unfunded commitments to extend credit which, when funded,
would constitute Junior Lien Debt;

provided, however, that after (i) the termination or expiration of all commitments to extend
credit that would constitute Junior Lien Debt, (ii) the payment in full in cash of the
principal of and interest and premium (if any) on all Junior Lien Debt (other than any
undrawn letters of credit), (iii) the discharge or cash collateralization (at the lower of
(x) 105% of the aggregate undrawn amount or (y) the percentage of the aggregate undrawn
amount required for release of Liens under the terms of the applicable Junior Lien Document)
of all outstanding letters of credit constituting Junior Lien Debt and (iv) the payment in
full in cash of all other Junior Lien Obligations other than any Junior Lien Obligations
consisting of Hedging Obligations, the term “Act of Required Debtholders” will mean the
holders of more than 50% of the sum of the aggregate “settlement amount” (or similar term)
(as defined in the applicable Hedge Agreement relating to Junior Lien Obligations consisting
of a Hedging Obligation) or, with respect to any such Hedge Agreement that has been
terminated in accordance with its terms, the amount then due and payable (including any
termination payments then due) under such Hedge Agreement, under all Hedge Agreements
relating to Junior Lien Obligations consisting of Hedging Obligations; provided that the
“settlement amount” (or similar term) as of the last Business Day of the month preceding any
date of determination shall be calculated by the appropriate swap counterparties and
reported to the Collateral Trustee upon request; provided further, that any Hedging
Obligation with a “settlement amount” (or similar term) that is a negative number shall be
disregarded for purposes of all calculations required by the term “Act of the Required
Debtholders.”

     For purposes of this definition, (a) Secured Debt registered in the name of, or beneficially
owned by, the Company or any Affiliate of the Company will not be deemed outstanding, and (b) votes
will be determined in accordance with Section 7.2 of the Collateral Trust Agreement.

     “Additional Notes” means an unlimited aggregate principal amount of Notes (other than the
Initial Notes) issued on or after the Release Date under this Indenture in accordance with Sections
2.02,

2

 

4.09 and 4.12 hereof which shall have identical terms as the Initial Notes, other than with
respect to the date of issuance and issue price.

     “Affiliate” of any specified Person means any other Person directly or indirectly controlling
or controlled by or under direct or indirect common control with such specified Person. For
purposes of this definition, “control,” as used with respect to any Person, means the possession,
directly or indirectly, of the power to direct or cause the direction of the management or policies
of such Person, whether through the ownership of voting securities, by agreement or otherwise. For
purposes of this definition, the terms “controlling,” “controlled by” and “under common control
with” have correlative meanings. No Person (other than Parent or any Subsidiary of Parent) in whom
a Receivables Subsidiary makes an Investment in connection with a Qualified Receivables Transaction
will be deemed to be an Affiliate of Parent or any of its Subsidiaries solely by reason of such
Investment.

     “Agent” means any Registrar, co-registrar, Paying Agent or additional paying agent.

     “Aircraft Mortgage” means an aircraft mortgage in form and substance reasonably acceptable to
the Collateral Trustee and the Company.

     “Airport Authority” means any city or any public or private board or other body or
organization chartered or otherwise established for the purpose of administering, operating or
managing airports or related facilities.

     “Applicable Premium” means, with respect to any Note on any redemption date, the greater of:

     (1) 1.0% of the principal amount of the Note; and

     (2) the excess of: (A) the present value at such redemption date of (i) the redemption
price of such Note at February 1, 2012, (such redemption price being set forth in Section
3.07(e) hereof), plus (ii) all required interest payments due on the Note through February
1, 2012, (excluding accrued and unpaid interest to the redemption date), computed using a
discount rate equal to the Treasury Rate as of such redemption date plus 50 basis points;
over (B) the principal amount of such Note.

     “Applicable Procedures” means, with respect to any transfer or exchange of or for beneficial
interests in any Global Note, the rules and procedures of the Depositary, Euroclear and Clearstream
that apply to such transfer or exchange.

     “Appraisal” means an appraisal, dated the date of delivery thereof, prepared by SH&E, Inc. or
another independent appraisal firm appointed by the Company and reasonably satisfactory to the
Trustee, which certifies, at the time of determination, in reasonable detail the Appraised Value of
the Collateral and, except in the case of Cure Collateral or Qualified Replacement Assets not
constituting Japan Routes, Japan Slots or Japan Gate Leaseholds, is consistent in all material
respects with the Appraisal delivered to the Trustee on the date of the Indenture and described in
the Offering Memorandum under the caption “Description of the collateral—Appraisal.”

     “Appraised Value” means, as of any date of determination, the sum of (a) the aggregate fair
market value of all Collateral (other than cash and Cash Equivalents pledged as Cure Collateral or
maintained in the Collateral Proceeds Account) owned by the Company as of that date, as reflected
in the most recent Appraisal delivered to the Trustee as of that date plus (b) 150% of the amount
of cash and Cash Equivalents pledged at such time as Cure Collateral or maintained in the
Collateral Proceeds Account.

3

 

     “Asset Sale” means:

     (1) the sale, lease, conveyance, transfer or other disposition of any assets or rights
(whether voluntarily, or in an involuntary transaction that generates Net Proceeds) by
Parent or any of its Restricted Subsidiaries (any of the foregoing, a “disposition”);
provided that the sale, lease, conveyance or other disposition of all or substantially all
of the assets of Parent and its Restricted Subsidiaries taken as a whole will be governed by
Sections 4.15 and/or 5.01 hereof and not by Section 4.10; and

     (2) the issuance or sale of Equity Interests (other than directors’ qualifying shares
and shares issued to foreign nationals or other third parties to the extent required by
applicable law) of any of Parent’s Restricted Subsidiaries, including any sale for cash.

Notwithstanding the preceding, none of the following items will be deemed to be an Asset Sale:

     (1) any single transaction or series of related transactions that involves assets
having a Fair Market Value of less than $10.0 million;

     (2) dispositions between or among Parent and its Restricted Subsidiaries;

     (3) an issuance or sale of Equity Interests by a Restricted Subsidiary of Parent to
Parent or to a Restricted Subsidiary of Parent;

     (4) the disposition of products, services or accounts receivable and other properties
or assets that do not constitute the Japan Routes, Japan Slots, Japan Gate Leaseholds or any
property or asset that constitutes Collateral in the ordinary course of business and any
other disposition of damaged, worn-out, uneconomical or obsolete properties or assets that
do not constitute the Japan Routes, Japan Slots, Japan Gate Leaseholds or any property or
asset that constitutes Collateral in the ordinary course of business;

     (5) licenses, sublicenses, leases and subleases by Parent or any of its Restricted
Subsidiaries of software or intellectual property in the ordinary course of business;

     (6) any surrender or waiver of contract rights or settlement, release, recovery on or
surrender of contract, tort or other claims in the ordinary course of business;

     (7) the granting of Liens not prohibited by Section 4.12 hereof;

     (8) the sale or other disposition of cash or Cash Equivalents that do not constitute
Collateral;

     (9) a Restricted Payment that does not violate Section 4.07 hereof or a Permitted
Investment, in each case other than a Restricted Payment or a Permitted Investment involving
the Japan Routes, Japan Slots, Japan Gate Leaseholds or any property or asset that
constitutes Collateral;

     (10) the abandonment of assets no longer useful or used in the business; provided, that
such abandonment is (A) in the ordinary course of business consistent with past practices
and (B) with respect to assets that are not material to the business of Parent and its
Restricted Subsidiaries;

4

 

     (11) the sale or discount of accounts to a collection agency in connection with
collections of delinquent receivables, or in a bankruptcy or similar proceeding;

     (12) any disposition of Margin Stock for fair value as determined in good faith by
Parent;

     (13) the lease or sublease of, or use or license agreements with respect to, assets and
properties in the ordinary course of business and swap or similar arrangements with respect
to Slots or Gate Leaseholds in the ordinary course of business (A) that do not constitute
Collateral, (B) that constitute Collateral so long as the lease, sublease, use or license
agreement pursuant to this clause (13)(B) has a term of one year or less, or in the case of
swaps or similar arrangements relating to Slots, does not extend beyond two comparable IATA
traffic seasons or (C) that constitute Collateral and the term of such lease, sublease, use
or license agreement or swap or similar arrangement pursuant to this clause (13)(C) is
longer than provided for in clause (13)(B); provided, however, that in the case of each
transaction pursuant to this clause (C), an officer of the Company determines in good faith
and certifies in an Officers’ Certificate delivered to the Trustee and the Collateral
Trustee prior to entering into any such transaction that (i) immediately after giving effect
to such transaction the Priority Lien Debt Value Ratio (excluding, for purposes of
calculating the Priority Lien Debt Value Ratio, the proceeds of such transaction and the
intended use there of) would be at least 1.5 to 1.0, (ii) the Collateral Trustee’s Liens on
Collateral subject to such lease, sublease, use, license agreement or swap or similar
arrangement are not materially adversely affected and (iii) no Event of Default exists at
the time of such transaction;

     (14) the lease or sublease, in the ordinary course of business, of up to five pairs of
Slots at Tokyo’s Narita Airport to All Nippon Airways;

     (15) sales of accounts receivables and related assets of the type specified in the
definition of “Qualified Receivables Transaction” to a Receivables Subsidiary;

     (16) transfers of accounts receivables and related assets of the type specified in the
definition of “Qualified Receivables Transaction” (or a fractional undivided interest
therein) to a Receivables Subsidiary or to any other Person in connection with a Qualified
Receivables Transaction or the creation of a Lien on any such accounts receivables or
related assets in connection with a Qualified Receivables Transaction;

     (17) sales of jet fuel and related property pursuant to the Jet Fuel Supply Agreement;

     (18) sales or dispositions of aircraft, aircraft engines and spare parts that do not
constitute Collateral in the ordinary course of business; and

     (19) any issuance or sale of Equity Interests in, or Indebtedness or other securities
of, an Unrestricted Subsidiary, including in connection with any merger, consolidation or
amalgamation.

     “Banking Product Obligations” means, as applied to any Person, any direct or indirect
liability, contingent or otherwise, of such Person in respect of any treasury, depository and cash
management services, netting services and automated clearing house transfers of funds services,
including obligations for the payment of fees, interest, charges, expenses, attorneys’ fees and
disbursements in connection therewith.

5

 

     “Bankruptcy Law” means Title 11 of the U.S. Code or any similar federal or state law for the
relief of debtors.

     “Beneficial Owner” has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under
the Exchange Act, except that in calculating the beneficial ownership of any particular “person”
(as that term is used in Section 13(d)(3) of the Exchange Act), such “person” will be deemed to
have beneficial ownership of all securities that such “person” has the right to acquire by
conversion or exercise of other securities, whether such right is currently exercisable or is
exercisable only after the passage of time. The terms “Beneficially Owns” and “Beneficially Owned”
have a corresponding meaning.

     “Board of Directors” means:

     (1) with respect to a corporation, the board of directors of the corporation or any
committee thereof duly authorized to act on behalf of such board;

     (2) with respect to a partnership, the Board of Directors of the general partner of the
partnership;

     (3) with respect to a limited liability company, the managing member or members,
manager or managers or any controlling committee of managing members thereof; and

     (4) with respect to any other Person, the board or committee of such Person serving a
similar function.

     “Business Day” means any day other than a Legal Holiday.

     “Capital Lease Obligation” means, at the time any determination is to be made, the amount of
the liability in respect of a capital lease that would at that time be required to be capitalized
and reflected as a liability on a balance sheet prepared in accordance with GAAP, and the Stated
Maturity thereof shall be the date of the last payment of rent or any other amount due under such
lease prior to the first date upon which such lease may be prepaid by the lessee without payment of
a penalty.

     “Capital Stock” means:

     (1) in the case of a corporation, corporate stock;

     (2) in the case of an association or business entity, any and all shares, interests,
participations, rights or other equivalents (however designated) of corporate stock;

     (3) in the case of a partnership or limited liability company, partnership interests
(whether general or limited) or membership interests; and

     (4) any other interest or participation that confers on a Person the right to receive a
share of the profits and losses of, or distributions of assets of, the issuing Person,

     but excluding from all of the foregoing any debt securities convertible into Capital Stock,
whether or not such debt securities include any right of participation with Capital Stock.

     “Cash Equivalents” means:

     (1) direct obligations of, or obligations the principal of and interest on which are
unconditionally guaranteed by, the United States (or by any agency thereof to the extent
such

6

 

obligations are backed by the full faith and credit of the United States), in each case
maturing within one year from the date of acquisition thereof;

     (2) direct obligations of state and local government entities, in each case maturing
within one year from the date of acquisition thereof, which have a rating of at least A- (or
the equivalent thereof) from S&P or A-3 (or the equivalent thereof) from Moody’s;

     (3) obligations of domestic or foreign companies and their subsidiaries (including,
without limitation, agencies, sponsored enterprises or instrumentalities chartered by an Act
of Congress, which are not backed by the full faith and credit of the United States),
including, without limitation, bills, notes, bonds, debentures, and mortgage-backed
securities, in each case maturing within one year from the date of acquisition thereof;

     (4) Investments in commercial paper maturing within 365 days from the date of
acquisition thereof and having, at such date of acquisition, a rating of at least A-2 (or
the equivalent thereof) from S&P or P-2 (or the equivalent thereof) from Moody’s;

     (5) Investments in certificates of deposit, banker’s acceptances, time deposits,
eurodollar time deposits or overnight bank deposits maturing within one year from the date
of acquisition thereof issued or guaranteed by or placed with, and money market deposit
accounts issued or offered by, any domestic office of any other commercial bank of
recognized standing organized under the laws of the United States or any State thereof that
has a combined capital and surplus and undivided profits of not less than $250.0 million;

     (6) fully collateralized repurchase agreements with a term of not more than six months
for underlying securities that would otherwise be eligible for investment;

     (7) Investments in money in an investment company organized under the Investment
Company Act of 1940, as amended, or in pooled accounts or funds offered through mutual
funds, investment advisors, banks and brokerage houses which invest its assets in
obligations of the type described in clauses (1) through (6) above. This could include, but
not be limited to, money market funds or short-term and intermediate bonds funds;

     (8) money market funds that (A) comply with the criteria set forth in SEC Rule 2a-7
under the Investment Company Act of 1940, as amended, (B) are rated AAA (or the equivalent
thereof) by S&P and Aaa (or the equivalent thereof) by Moody’s and (C) have portfolio assets
of at least $5.0 billion;

     (9) deposits available for withdrawal on demand with commercial banks organized in the
United States having capital and surplus in excess of $100.0 million; and

     (10) securities with maturities of one year or less from the date of acquisition issued
or fully guaranteed by any state, commonwealth or territory of the United States, by any
political subdivision or taxing authority of any such state, commonwealth or territory or by
any foreign government, the securities of which state, commonwealth, territory, political
subdivision, taxing authority or foreign government (as the case may be) are rated at least
A by S&P or A2 by Moody’s.

7

 

     “Change of Control” means the occurrence of any of the following:

     (1) the sale, lease, transfer, conveyance or other disposition (other than by way of
merger or consolidation), in one or a series of related transactions, of all or
substantially all of the properties or assets of Parent and its Subsidiaries taken as a
whole to any Person (including any “person” (as that term is used in Section 13(d)(3) of the
Exchange Act));

     (2) the consummation of any transaction (including, without limitation, any merger or
consolidation), the result of which is that any Person (including any “person” (as defined
above)) becomes the Beneficial Owner, directly or indirectly, of more than 50% of the Voting
Stock of Parent (measured by voting power rather than number of shares), other than (A) any
such transaction where the Voting Stock of Parent (measured by voting power rather than
number of shares) outstanding immediately prior to such transaction constitutes or is
converted into or exchanged for a majority of the outstanding shares of the Voting Stock of
such Beneficial Owner (measured by voting power rather than number of shares) or (B) any
merger or consolidation of Parent with or into any Person (including any “person” (as
defined above)) which owns a Permitted Business (a “Permitted Person”) or a Subsidiary of a
Permitted Person, in each case, if immediately after such transaction no Person (including
any “person” (as defined above)) is the Beneficial Owner, directly or indirectly, of more
than 50% of the total Voting Stock of such Permitted Person (measured by voting power rather
than number of shares);

     (3) the first day on which Parent ceases to own 100% of the outstanding Equity
Interests of the Company; or

     (4) during any period of up to 24 consecutive months, a majority of the Board of
Directors (excluding vacant seats) of Parent shall cease to consist of Continuing Directors.

     “Class” means (a) in the case of Junior Lien Debt, every Series of Junior Lien Debt, taken
together and (b) in the case of Priority Lien Debt, every Series of Priority Lien Debt, taken
together.

     “Clearstream” means Clearstream Banking, S.A.

     “Co-Branded Agreement” means that certain Amended and Restated Co-Branded Card Marketing
Services Agreement, effective September 15, 2008, among the Company, Parent, UAL Loyalty Services,
LLC and Chase Bank USA, N.A., as heretofore amended and as may be further amended, amended and
restated, modified, supplemented, replaced or extended from time to time.

     “Collateral” means (a) the Japan Routes, the Japan Slots and the Japan Gate Leaseholds upon
which Secured Debt Liens have been granted to the Collateral Trustee to secure the Secured Debt
Obligations, (b) Qualified Replacement Assets, (c) all Cure Collateral upon which Secured Debt
Liens have been granted to the Collateral Trustee to secure the Secured Debt Obligations under the
circumstances contemplated by the provisions of Sections 4.20 and 4.21 hereof and (d) all proceeds
of the foregoing (including, without limitation, proceeds from dispositions of the foregoing
deposited into the Collateral Proceeds Account held by the Collateral Trustee). For the avoidance
of doubt, the term “Collateral” does not include the Escrow Account or other Escrow Property.

     “Collateral Trust Agreement” means the Collateral Trust Agreement, dated as of the date of
this Indenture, among the Company, the Trustee and the Collateral Trustee, as amended, restated,
adjusted, waived, renewed, extended, supplemented or otherwise modified from time to time.

     “Collateral Trustee” means Wilmington Trust FSB, in its capacity as Collateral Trustee under
the Collateral Trust Agreement, together with its successors in such capacity.

8

 

     “Company” means United Air Lines, Inc., a Delaware corporation, and any and all successors
pursuant to Section 5.02 hereof.

     “Consolidated EBITDAR” means, with respect to any specified Person for any period, the
Consolidated Net Income of such Person for such period plus, without duplication:

     (1) an amount equal to any extraordinary loss plus any net loss realized by such Person
or any of its Restricted Subsidiaries in connection with an asset sale, to the extent such
losses were deducted in computing such Consolidated Net Income; plus

     (2) provision for taxes based on income or profits of such Person and its Restricted
Subsidiaries for such period, to the extent that such provision for taxes was deducted in
computing such Consolidated Net Income; plus

     (3) the Fixed Charges of such Person and its Restricted Subsidiaries for such period,
to the extent that such Fixed Charges were deducted in computing such Consolidated Net
Income; plus

     (4) any foreign currency translation losses (including losses related to currency
remeasurements of Indebtedness) of such Person and its Restricted Subsidiaries for such
period, to the extent that such losses were taken into account in computing such
Consolidated Net Income; plus

     (5) depreciation, amortization (including amortization of intangibles but excluding
amortization of prepaid cash expenses that were paid in a prior period) and other non-cash
charges and expenses (excluding any such non-cash charge or expense to the extent that it
represents an accrual of or reserve for cash charges or expenses in any future period or
amortization of a prepaid cash charge or expense that was paid in a prior period) of such
Person and its Restricted Subsidiaries for such period to the extent that such depreciation,
amortization and other non-cash charges or expenses were deducted in computing such
Consolidated Net Income; plus

     (6) aircraft rent expense of such Person and its Restricted Subsidiaries for such
period to the extent that such aircraft rent expense is payable in cash and was deducted in
computing such Consolidated Net Income; plus

     (7) to the extent deducted in computing such Consolidated Net Income, extraordinary,
nonrecurring or unusual losses for such period; plus

     (8) to the extent deducted in computing such Consolidated Net Income, the amortization
of debt discount for such period; plus

     (9) an amount equal to any deduction to Consolidated Net Income as a result of any
grant to any employee of Parent or its Restricted Subsidiaries of any Equity Interests
during such period; plus

     (10) to the extent deducted in computing such Consolidated Net Income, any net loss
incurred during such period arising from the sale, exchange or other disposition of capital
assets by Parent or its Restricted Subsidiaries (including any fixed assets, whether
tangible or intangible, all inventory sold in conjunction with the disposition of fixed
assets and all securities); plus

9

 

     (11) to the extent deducted in computing such Consolidated Net Income, any losses
arising under fuel hedging arrangements incurred prior to the date of this Indenture; plus

     (12) to the extent deducted in computing such Consolidated Net Income, cash
restructuring charges in an aggregate amount not to exceed $15.0 million in any fiscal year;
plus

     (13) to the extent deducted in computing such Consolidated Net Income, all
cost-savings, integration costs, transactional costs, expenses and charges incurred in
connection with the consummation of any transaction related to any permitted acquisition,
merger, disposition, issuance of Indebtedness, issuance of Equity Interests, or any
Investment, in each case, to the extent permitted under this Indenture; plus

     (14) proceeds from business interruption insurance, to the extent not already included
calculating such Consolidated Net Income; plus

     (15) to the extent deducted in computing such Consolidated Net Income, any expenses and
charges that are covered by indemnification or reimbursement provisions in connection with
any permitted acquisition, merger, disposition, incurrence of Indebtedness, issuance of
Equity Interests or any investment to the extent actually indemnified or reimbursed; plus

     (16) proceeds from sales of miles to third party business partners to the extent not
already included in calculating Consolidated Net Income; plus

     (17) to the extent deducted in computing such Consolidated Net Income, costs and
expenses, including fees, incurred directly in connection with the consummation of the
offering of the Notes as described in the Offering Memorandum; minus

     (18) non-cash items increasing such Consolidated Net Income for such period, other than
the accrual of revenue in the ordinary course of business; minus

     (19) the sum of (A) income tax credits, (B) interest income and (C) extraordinary,
non-recurring or unusual gains included in calculating Consolidated Net Income for such
period; minus

     (20) any amount included in the calculation of Consolidated EBITDAR in a prior period
under clause (16) of this definition to the extent that such amount is recognized as revenue
in such current period,

in each case, on a consolidated basis and determined in accordance with GAAP.

     “Consolidated Net Income” means, with respect to any specified Person for any period, the
aggregate of the net income (loss) of such Person and its Restricted Subsidiaries for such period,
on a consolidated basis (excluding the net income (loss) of any Unrestricted Subsidiary of such
Person), determined in accordance with GAAP and without any reduction in respect of preferred stock
dividends; provided that:

     (1) all net after tax extraordinary, non-recurring or unusual gains or losses and all
gains or losses realized in connection with any Asset Sale (without giving effect to the
exclusions listed in the definition of “Asset Sale”) or the disposition of securities or the
early extinguishment of Indebtedness, together with any related provision for taxes on any
such gain, will be excluded;

10

 

     (2) the net income (but not loss) of any Person that is not a Restricted Subsidiary or
that is accounted for by the equity method of accounting will be included only to the extent
of the amount of dividends or similar distributions paid in cash to the specified Person or
a Restricted Subsidiary of the Person;

     (3) the net income (but not loss) of any Restricted Subsidiary will be excluded to the
extent that the declaration or payment of dividends or similar distributions by that
Restricted Subsidiary of that net income is not at the date of determination permitted
without any prior governmental approval (that has not been obtained) or, directly or
indirectly, by operation of the terms of its charter or any agreement, instrument, judgment,
decree, order, statute, rule or governmental regulation applicable to that Restricted
Subsidiary or its stockholders;

     (4) the cumulative effect of a change in accounting principles will be excluded;

     (5) the effect of non-cash gains and losses resulting from Hedging Obligations,
including attributable to movement in the mark-to-market valuation of Hedging Obligations
pursuant to Financial Accounting Standards Board Statement No. 133, will be excluded;

     (6) any non-cash compensation expense recorded from grants of stock appreciation or
similar rights, stock options or other rights to officers, directors or employees, will be
excluded;

     (7) the effect of any non-cash items resulting from any amortization, write-up,
write-down or write-off of assets (including intangible assets, goodwill and deferred
financing costs) in connection with any acquisition, disposition, merger, consolidation or
similar transaction or any other non-cash impairment charges incurred subsequent to the date
of this Indenture resulting from the application at SFAS Nos. 141, 142 or 144 (excluding any
such non-cash item to the extent that it represents and accrual of or reserve for cash
expenditures in any future period except to the extent such item is subsequently reversed),
will be excluded;

     (8) non-cash charges of the type described under the section titled “Fresh-Start
Reporting” in Parent’s financial statements included in its Form 10-K for the year ended
December 31, 2006, will be excluded; and

     (9) any provision for income tax reflected on such Person’s financial statements for
such period will be excluded to the extent such provision exceeds the actual amount of taxes
paid in cash during such period by such Person and its consolidated Subsidiaries.

     “continuing” means, with respect to any Default or Event of Default, that such Default or
Event of Default has not been cured or waived.

     “Continuing Directors” means, as of any date or for any period of determination, any member of
the Board of Directors of Parent who:

     (1) was a member of such Board of Directors on the first day of such period; or

     (2) was nominated for election or elected to such Board of Directors with the approval
of a majority of the Continuing Directors who were members of such Board of Directors at the
time of such nomination or election.

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     “Corporate Trust Office of the Trustee” will be at the address of the Trustee specified in
Section 13.01 hereof and for purposes of Sections 2.03 and 4.02 hereof, such office shall also mean
the office or agency of the Trustee located at 101 Barclay Street, New York, NY 10286, Attention:
Bond Operations-7E, or such other address as to which the Trustee may give notice to the Company.

     “Credit Agreement” means that certain Amended and Restated Revolving Credit, Term Loan and
Guaranty Agreement, dated as of February 2, 2007, by and among the Company, as borrower, Parent,
the subsidiaries of the Company and Parent named therein, as guarantors, the lenders party thereto,
JPMorgan Chase Bank, N.A., as co-administrative agent, co-collateral agent and paying agent,
Citicorp USA, Inc., as co-administrative agent and co-collateral agent, J.P. Morgan Securities
Inc., as joint lead arranger and joint bookrunner, Citigroup Global Markets Inc., as joint lead
arranger and joint bookrunner and Credit Suisse Securities (USA) LLC, as syndication agent, as
amended, restated, modified, supplemented, renewed, refunded, replaced in any manner (whether upon
or after termination or otherwise, and whether or not the amount of Indebtedness thereunder is
increased) or refinanced (including by means of sales of debt securities) in whole or in part from
time to time.

     “Credit Facilities” means, one or more debt facilities (including, without limitation, the
Credit Agreement) or commercial paper facilities, in each case with banks or other lenders
providing for revolving credit loans, term loans, receivables financing (including through the sale
of receivables to such lenders or to special purpose entities formed to borrow from such lenders
against such receivables) or letters of credit, in each case, as amended, restated, modified,
renewed, extended, refunded, replaced in any manner (whether upon or after termination or
otherwise) or refinanced (including by means of sales of debt securities) in whole or in part from
time to time.

     “Cure Collateral” means (a) cash and Permitted Investments contemplated by clauses (2) and
(14) of the definition thereof, pledged to the Collateral Trustee (and subject to an account
control agreement in form and substance reasonably satisfactory to the Collateral Trustee) and (b)
additional Routes, Slots, Gates Leaseholds, ground support equipment, airframes, engines, spare
parts, Real Property Assets, flight simulators, QEC Kits or other assets of the Company designated
as “Cure Collateral” in an Officers’ Certificate delivered by the Company to the Collateral Trustee
and pledged on a Secured Debt Lien basis to the Collateral Trustee pursuant to arrangements
reasonably satisfactory to the Collateral Trustee.

     “Custodian” means the Trustee, as custodian for the Depositary with respect to the Global
Notes, or any successor entity thereto.

     “Default” means any event that, unless cured or waived, is, or with the passage of time or the
giving of notice or both would be, an Event of Default.

     “Definitive Note” means a certificated Note registered in the name of the Holder thereof and
issued in accordance with Section 2.06 hereof, substantially in the form of Exhibit A hereto except
that such Note shall not bear the Global Note Legend and shall not have the “Schedule of Exchanges
of Interests in the Global Note” attached thereto.

     “Depositary” means, with respect to the Notes issuable or issued in whole or in part in global
form, the Person specified in Section 2.03 hereof as the Depositary with respect to the Notes, and
any and all successors thereto appointed as depositary hereunder and having become such pursuant to
the applicable provision of this Indenture.

     “Designated Noncash Consideration” means any non-cash consideration received by Parent or a
Restricted Subsidiary in connection with an Asset Sale that is designated as Designated Noncash

12

 

Consideration pursuant to an Officers’ Certificate delivered to the Trustee, which Officers’
Certificate shall set forth the Fair Market Value of such Designated Noncash Consideration and the
basis for determining Fair Market Value.

     “Discharge of Priority Lien Obligations” means the occurrence of all of the following:

     (1) termination or expiration of all commitments to extend credit that would constitute
Priority Lien Debt;

     (2) payment in full in cash of the principal of and interest and premium (if any) on
all Priority Lien Debt (other than any undrawn letters of credit);

     (3) discharge or cash collateralization (at the lower of (A) 105% of the aggregate
undrawn amount and (B) the percentage of the aggregate undrawn amount required for release
of liens under the terms of the applicable Priority Lien Document) of all outstanding
letters of credit constituting Priority Lien Debt; and

     (4) payment in full in cash of all other Priority Lien Obligations that are outstanding
and unpaid at the time the Priority Lien Debt is paid in full in cash (other than any
obligations for taxes, costs, indemnifications, reimbursements, damages and other
liabilities in respect of which no claim or demand for payment has been made at such time).

     “Disqualified Stock” means any Capital Stock that, by its terms (or by the terms of any
security into which it is convertible, or for which it is exchangeable, in each case at the option
of the holder of the Capital Stock), or upon the happening of any event, matures or is mandatorily
redeemable, pursuant to a sinking fund obligation or otherwise (other than as a result of a change
of control or asset sale), is convertible or exchangeable for Indebtedness or Disqualified Stock,
or is redeemable at the option of the holder of the Capital Stock, in whole or in part (other than
as a result of a change of control or asset sale), on or prior to the date that is 91 days after
the date on which the Notes mature. Notwithstanding the preceding sentence, any Capital Stock that
would constitute Disqualified Stock solely because the holders of the Capital Stock have the right
to require the Company to repurchase such Capital Stock upon the occurrence of a change of control
or an asset sale will not constitute Disqualified Stock if the terms of such Capital Stock provide
that the Company may not repurchase or redeem any such Capital Stock pursuant to such provisions
unless such repurchase or redemption complies with Section 4.07 hereof. The amount of Disqualified
Stock deemed to be outstanding at any time for purposes of this Indenture will be the maximum
amount that Parent and its Restricted Subsidiaries may become obligated to pay upon the maturity
of, or pursuant to any mandatory redemption provisions of, such Disqualified Stock, exclusive of
accrued dividends.

     “DOT” means the U.S. Department of Transportation and any successor thereto.

     “Equity Interests” means Capital Stock and all warrants, options or other rights to acquire
Capital Stock (but excluding any debt security that is convertible into, or exchangeable for,
Capital Stock).

     “Equity Offering” means any public or private sale either: (a) of Qualifying Equity Interests
by Parent (other than to a Subsidiary of Parent or pursuant to a registration statement on Form S-8
or otherwise relating to equity securities issuable under any employee benefit plan of Parent) or
(b) of Equity Interests of a direct or indirect parent entity of Parent (other than to Parent or a
Subsidiary of Parent) to the extent that the net proceeds therefrom are contributed to the common
equity capital of Parent.

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     “Escrow Account” has the meaning set forth in the Escrow and Security Agreement.

     “Escrow and Security Agreement” means the Escrow and Security Agreement, dated as of the date
of this Indenture, among the Company, the Trustee and The Bank of New York Mellon Trust Company,
N.A., as escrow agent, for the sole benefit of the Holders of Notes, as such agreement may be
amended, amended and restated, adjusted, supplemented or otherwise modified from time to time.

     “Escrow Conditions” has the meaning set forth in the Collateral Trust Agreement.

     “Escrow Property” has the meaning set forth in the Escrow and Security Agreement.

     “Euroclear” means Euroclear Bank, S.A./N.V., as operator of the Euroclear system.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Excluded Contributions” means net cash proceeds received by Parent after the date of this
Indenture from:

     (1) contributions to its common equity capital (other than from any Subsidiary); or

     (2) the sale (other than to a Subsidiary or to any management equity plan or stock
option plan or any other management or employee benefit plan or agreement of Parent or any
Subsidiary) of Qualifying Equity Interests,

in each case designated as Excluded Contributions pursuant to an Officers’ Certificate executed on
the date such capital contributions are made or the date such Equity Interests are sold, as the
case may be. Excluded Contributions will not be considered to be net proceeds of Qualifying Equity
Interests for purposes of clause (a)(3)(B) of Section 4.07 hereof.

     “Existing Indebtedness” means all Indebtedness of Parent and its Subsidiaries (other than
Indebtedness incurred under clauses (1) or (3) of the definition of “Permitted Debt”) in existence
on the date of this Indenture (including under the Credit Agreement), until such amounts are
repaid.

     “FAA” means the Federal Aviation Administration of the United States of America and any
successor thereto.

     “Fair Market Value” means the value that would be paid by a willing buyer to an unaffiliated
willing seller in a transaction not involving distress or necessity of either party, determined in
good faith by the Board of Directors of Parent (unless otherwise provided in this Indenture);
provided that the Board of Directors shall be permitted to consider the circumstances existing at
such time (including, without limitation, any relevant legal compulsion, judicial proceeding or
administrative order or the possibility thereof) in determining such Fair Market Value in
connection with such transaction.

     “Fifth-Freedom Rights” means the operational right to enplane passenger traffic and cargo in a
foreign country and deplane it in another foreign country, including any such right pursuant to a
bilateral treaty between the United States and a foreign country.

     “Fixed Charge Coverage Ratio” means with respect to any specified Person for any period, the
ratio of the Consolidated EBITDAR of such Person for such period to the Fixed Charges of such
Person for such period. In the event that the specified Person or any of its Restricted
Subsidiaries incurs, assumes, guarantees, repays, repurchases, redeems, defeases or otherwise
discharges any Indebtedness

14

 

(other than ordinary working capital borrowings) or issues, repurchases or redeems
Disqualified Stock or preferred stock subsequent to the commencement of the period for which the
Fixed Charge Coverage Ratio is being calculated and on or prior to the date on which the event for
which the calculation of the Fixed Charge Coverage Ratio is made (the “Calculation Date”), then the
Fixed Charge Coverage Ratio will be calculated giving pro forma effect (as determined in good faith
by a responsible financial or accounting officer of Parent and certified in an Officers’
Certificate delivered to the Trustee) to such incurrence, assumption, Guarantee, repayment,
repurchase, redemption, defeasance or other discharge of Indebtedness, or such issuance, repurchase
or redemption of Disqualified Stock or preferred stock, and the use of the proceeds therefrom, as
if the same had occurred at the beginning of the applicable four-quarter reference period.

     In addition, for purposes of calculating the Fixed Charge Coverage Ratio:

     (1) acquisitions that have been made by the specified Person or any of its Restricted
Subsidiaries, including through mergers or consolidations, or any Person or any of its
Restricted Subsidiaries acquired by the specified Person or any of its Restricted
Subsidiaries, and including all related financing transactions and including increases in
ownership of Restricted Subsidiaries, during the four-quarter reference period or subsequent
to such reference period and on or prior to the Calculation Date, or that are to be made on
the Calculation Date, will be given pro forma effect (as determined in good faith by a
responsible financial or accounting officer of Parent and certified in an Officers’
Certificate delivered to the Trustee, and including any operating expense reductions for
such period resulting from such acquisition that have been realized or for which all of the
material steps necessary for realization have been taken) as if they had occurred on the
first day of the four-quarter reference period;

     (2) the Consolidated EBITDAR attributable to discontinued operations, as determined in
accordance with GAAP, and operations or businesses (and ownership interests therein)
disposed of prior to the Calculation Date, will be excluded;

     (3) the Fixed Charges attributable to discontinued operations, as determined in
accordance with GAAP, and operations or businesses (and ownership interests therein)
disposed of prior to the Calculation Date, will be excluded, but only to the extent that the
obligations giving rise to such Fixed Charges will not be obligations of the specified
Person or any of its Restricted Subsidiaries following the Calculation Date;

     (4) any Person that is a Restricted Subsidiary on the Calculation Date will be deemed
to have been a Restricted Subsidiary at all times during such four-quarter period;

     (5) any Person that is not a Restricted Subsidiary on the Calculation Date will be
deemed not to have been a Restricted Subsidiary at any time during such four-quarter period;
and

     (6) if any Indebtedness bears a floating rate of interest, the interest expense on such
Indebtedness will be calculated as if the rate in effect on the Calculation Date had been
the applicable rate for the entire period (taking into account any Hedging Obligation
applicable to such Indebtedness if such Hedging Obligation has a remaining term as at the
Calculation Date in excess of 12 months).

     “Fixed Charges” means, with respect to any specified Person for any period, the sum, without
duplication, of:

15

 

     (1) the consolidated gross cash interest expense of such Person and its Restricted
Subsidiaries for such period; plus

     (2) the cash interest component of leases that are capitalized in accordance with GAAP
of such Person and its Restricted Subsidiaries for such period; plus

     (3) any cash interest expense actually paid on Indebtedness of another Person that is
guaranteed by such Person or one of its Restricted Subsidiaries or secured by a Lien on
assets of such Person or one of its Restricted Subsidiaries; plus

     (4) the product of (A) all cash dividends accrued on any series of preferred stock of
such Person or any of its Restricted Subsidiaries, other than to Parent or a Restricted
Subsidiary of Parent, times (B) a fraction, the numerator of which is one and the
denominator of which is one minus the then current combined federal, state and local
statutory tax rate of such Person, expressed as a decimal, in each case, determined on a
consolidated basis in accordance with GAAP; plus

     (5) the aggregate aircraft rental expense of such Person and its Restricted
Subsidiaries for such period to the extent such rental expense is payable in cash,

all as determined on a consolidated basis in accordance with GAAP.

     “Foreign Aviation Authorities” means any foreign governmental, quasi-governmental, regulatory
or other agencies, public corporations or private entities that exercise jurisdiction over the
issuance or authorization (a) to serve any foreign point on the Japan Routes that the Company is
serving at any time (other than points in China, including Hong Kong) and/or to conduct operations
related to the Japan Routes and Japan Gate Leaseholds and/or (b) to hold and operate any Japan
Route Foreign Slots.

     “GAAP” means generally accepted accounting principles in the United States of America, which
are in effect from time to time, including those set forth in the opinions and pronouncements of
the Accounting Principles Board of the American Institute of Certified Public Accountants,
statements and pronouncements of the Financial Accounting Standards Board, such other statements by
such other entity as have been approved by a significant segment of the accounting profession; and
the rules and regulations of the SEC governing the inclusion of financial statements in periodic
reports required to be filed pursuant to Section 13 of the Exchange Act, including opinions and
pronouncements in staff accounting bulletins and similar written statements from the accounting
staff of the SEC.

     “Gate Leasehold” means, at any time, all of the right, title, privilege, interest and
authority, now held or hereafter acquired by the Company in connection with the right to use,
operate or occupy space in an airport terminal at an airport where the Company conducts scheduled
nonstop service utilizing the Japan Routes to the extent such right, title, privilege, interest or
authority is actually used in conjunction with the operation of such nonstop service.

     “Global Note Legend” means the legend set forth in Section 2.06(f)(2) hereof, which is
required to be placed on all Global Notes issued under this Indenture.

     “Global Notes” means, individually and collectively, each of the Restricted Global Notes and
the Unrestricted Global Notes deposited with or on behalf of and registered in the name of the
Depository or its nominee, substantially in the form of Exhibit A hereto and that bears the Global
Note Legend and that has the “Schedule of Exchanges of Interests in the Global Note” attached
thereto, issued in accordance with Section 2.01 or 2.06(b)(3), 2.06(b)(4) or 2.06(d)(2).

16

 

     “Government Securities” means direct obligations of, or obligations guaranteed by, the United
States of America (including any agency or instrumentality thereof) for the payment of which
obligations or guarantees the full faith and credit of the United States of America is pledged and
which are not callable or redeemable at the issuer’s option.

     “Governmental Authority” means the government of the United States of America, any other
nation or any political subdivision thereof, whether state or local, and any agency, authority,
instrumentality, regulatory body, court, central bank organization, or other entity exercising
executive, legislative, judicial, taxing or regulatory powers or functions of or pertaining to
government. Governmental Authority shall not include any Person in its capacity as an Airport
Authority.

     “Guarantee” means a guarantee (other than (a) by endorsement of negotiable instruments for
collection or (b) customary contractual indemnities, in each case in the ordinary course of
business), direct or indirect, in any manner including, without limitation, by way of a pledge of
assets or through letters of credit or reimbursement agreements in respect thereof, of all or any
part of any Indebtedness (whether arising by virtue of partnership arrangements, or by agreements
to keep-well, to purchase assets, goods, securities or services, to take or pay or to maintain
financial statement conditions).

     “Guarantors” means Parent and any domestic Restricted Subsidiary of Parent that guarantees the
Notes in accordance with the provisions of this Indenture, and their respective successors and
assigns, in each case, until the Note Guarantee of such Person has been released in accordance with
the provisions of this Indenture.

     “Hedge Agreement” means any agreement evidencing Hedging Obligations.

     “Hedging Obligations” means, with respect to any specified Person, the Obligations of such
Person under:

     (1) interest rate swap agreements (whether from fixed to floating or from floating to
fixed), interest rate cap agreements and interest rate collar agreements;

     (2) other agreements or arrangements designed to manage interest rates or interest rate
risk; and

     (3) other agreements or arrangements designed to protect such Person against
fluctuations in currency exchange rates, fuel prices or other commodity prices.

     “Holder” means a Person in whose name a Note is registered.

     “IATA” means the International Air Transport Association and any successor thereto.

     “Indebtedness” means, with respect to any specified Person, any indebtedness of such Person
(excluding accrued expenses and trade payables), whether or not contingent:

     (1) in respect of borrowed money;

     (2) evidenced by bonds, notes, debentures or similar instruments or letters of credit
(or reimbursement agreements in respect thereof);

     (3) in respect of banker’s acceptances;

17

 

     (4) representing Capital Lease Obligations;

     (5) representing the balance deferred and unpaid of the purchase price of any property
or services due more than six months after such property is acquired or such services are
completed, and excluding in any event trade payables arising in the ordinary course of
business; or

     (6) representing any Hedging Obligations,

if and to the extent any of the preceding items (other than letters of credit and Hedging
Obligations) would appear as a liability upon a balance sheet of the specified Person prepared in
accordance with GAAP. In addition, the term “Indebtedness” includes all Indebtedness of others
secured by a Lien on any asset of the specified Person (whether or not such Indebtedness is assumed
by the specified Person) and, to the extent not otherwise included, the Guarantee by the specified
Person of any Indebtedness of any other Person. Indebtedness shall be calculated without giving
effect to the effects of Statement of Financial Accounting Standards No. 133 and related
interpretations to the extent such effects would otherwise increase or decrease an amount of
Indebtedness for any purpose under this Indenture as a result of accounting for any embedded
derivatives created by the terms of such Indebtedness.

     For the avoidance of doubt, Banking Product Obligations do not constitute Indebtedness.

     “Indenture” means this Indenture, as amended, amended and restated, adjusted, supplemented or
otherwise modified from time to time.

     “Indirect Participant” means a Person who holds a beneficial interest in a Global Note through
a Participant.

     “Initial Notes” means the first $500.0 million aggregate principal amount of Notes issued
under this Indenture on the date of this Indenture.

     “Initial Purchasers” means J.P. Morgan Securities Inc., Goldman, Sachs & Co., Morgan Stanley &
Co. Incorporated, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Barclays
Capital Inc.

     “insolvency or liquidation proceeding” means:

     (1) any case commenced by or against the Company under Bankruptcy Law, any other
proceeding for the reorganization, recapitalization or adjustment or marshalling of the
assets or liabilities of the Company, any receivership or assignment for the benefit of
creditors relating to the Company or any similar case or proceeding relative to the Company
or its creditors, as such, in each case whether or not voluntary;

     (2) any liquidation, dissolution, marshalling of assets or liabilities or other winding
up of or relating to the Company, in each case whether or not voluntary and whether or not
involving bankruptcy or insolvency; or

     (3) any other proceeding of any type or nature in which substantially all claims of
creditors of the Company are determined and any payment or distribution is or may be made on
account of such claims.

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     “Institutional Accredited Investor” means an institution that is an “accredited investor” as
defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act, who are not also QIBs.

     “Investments” means, with respect to any Person, all direct or indirect investments by such
Person in other Persons (including Affiliates) in the forms of loans (including Guarantees or other
obligations), advances or capital contributions (excluding commission, travel and similar advances
to officers, employees and consultants made in the ordinary course of business), purchases or other
acquisitions for consideration of Indebtedness, Equity Interests or other securities of other
Persons, together with all items that are or would be classified as investments on a balance sheet
prepared in accordance with GAAP. If Parent or any Restricted Subsidiary of Parent sells or
otherwise disposes of any Equity Interests of any direct or indirect Restricted Subsidiary of
Parent such that, after giving effect to any such sale or disposition, such Person is no longer a
Restricted Subsidiary of Parent, Parent will be deemed to have made an Investment on the date of
any such sale or disposition equal to the Fair Market Value of Parent’s Investments in such
Subsidiary that were not sold or disposed of in an amount determined as provided in Section 4.07
hereof. Notwithstanding the foregoing, any Equity Interests retained by Parent or any of its
Subsidiaries after a disposition or dividend of assets or Capital Stock of any Person in connection
with any partial “spin-off” of a Subsidiary or similar transactions shall not be deemed to be an
Investment. The acquisition by Parent or any Restricted Subsidiary of Parent of a Person that
holds an Investment in a third Person will be deemed to be an Investment by Parent or such
Restricted Subsidiary in such third Person in an amount equal to the Fair Market Value of the
Investments held by the acquired Person in such third Person in an amount determined as provided in
Section 4.07 hereof. Except as otherwise provided in this Indenture, the amount of an Investment
will be determined at the time the Investment is made and without giving effect to subsequent
changes in value.

     “Japan Gate Leaseholds” means the right, title, privilege, interest and authority, now held or
hereafter acquired by the Company in connection with the right to use, operate or occupy space in
an airport terminal at an airport where the Company conducts scheduled nonstop service utilizing
the Japan Routes to the extent such right, title, privilege, interest or authority is actually used
in conjunction with the operation of such nonstop service (other than (a) at airports in China,
including Hong Kong or (b) at LaGuardia Airport, Reagan National Airport or London Heathrow Airport
in the case of this clause (b), to the extent otherwise pledged by the Company to other Persons).

     “Japan Route FAA Slot” means, at any time, any Slot of the Company, now held or hereafter
acquired, at an airport in the United States that serves as an origin or destination point for
nonstop flights that the Company operates from time to time utilizing the Japan Routes to the
extent such Slot is actually used in conjunction with the operation of such nonstop service (other
than at LaGuardia Airport or Reagan National Airport to the extent otherwise pledged by the Company
to other Persons).

     “Japan Route Foreign Slot” means, at any time, any Slot of the Company, now held or hereafter
acquired, at an airport outside the United States that serves as an origin or destination point for
nonstop flights that the Company operates from time to time utilizing the Japan Routes to the
extent such Slot is actually used in conjunction with the operation of such nonstop service (other
than (a) at airports in China, including Hong Kong or (b) London Heathrow Airport in the case of
this clause (b), to the extent otherwise pledged by the Company to other Persons).

     “Japan Routes” means the authority the Company now holds, or hereafter acquires from the DOT
pursuant to Title 49 or other applicable law, to operate scheduled foreign air transportation of
persons, property and mail between a point or points in the United States and a point or points in
Japan, and beyond between a point or points in Japan and a point or points in other countries,
including applicable designations, frequencies, exemptions, certificates, Fifth-Freedom Rights and
“behind and

19

 

beyond rights,” in each case whether or not utilized by the Company, except to the extent such
route authority relates to all-cargo operations.

     “Japan Slots” means the Company’s Slots, now held or hereafter acquired, at airports that
serve as an origin or destination point for nonstop flights the Company operates from time to time
utilizing the Japan Routes to the extent such Slots are actually used in conjunction with the
operation of such nonstop service (other than (a) at airports in China, including Hong Kong or (b)
at LaGuardia Airport, Reagan National Airport or London Heathrow Airport in the case of this clause
(b), to the extent otherwise pledged by the Company to other Persons).

     “Jet Fuel Supply Agreement” means the Jet Fuel Supply Agreement, dated as of October 21, 2003,
by and among the Company, United Aviation Fuels Corporation and Morgan Stanley Capital Group Inc.,
as heretofore amended or modified, and as may be further amended, amended and restated, modified,
supplemented, replaced or extended from time to time.

     “Junior Lien” means a Lien granted by a Security Document to the Collateral Trustee, at any
time, upon any property of the Company to secure Junior Lien Obligations.

     “Junior Lien Debt” means (a) the Second Lien Notes and (b) any Indebtedness (including letters
of credit and reimbursement obligations with respect thereto) of the Company that is secured by a
Junior Lien and that was permitted to be incurred and so secured under each applicable Secured Debt
Document (including any Permitted Refinancing Indebtedness incurred to renew, refund, refinance,
replace or defease other Junior Lien Debt); provided that:

     (1) on or before the date on which any such Indebtedness contemplated by clause (b)
above is incurred by the Company, such Indebtedness is designated by the Company, in an
Officers’ Certificate delivered to each Junior Lien Representative, each Priority Lien
Representative and the Collateral Trustee, as “Junior Lien Debt” for the purposes of this
Indenture and the Collateral Trust Agreement; provided that no Series of Secured Debt may be
designated as both Junior Lien Debt and Priority Lien Debt;

     (2) any such Indebtedness contemplated by clause (b) above is governed by an indenture,
credit agreement or other agreement that includes a Lien Sharing and Priority Confirmation;
and

     (3) all requirements set forth in the Collateral Trust Agreement as to the
confirmation, grant or perfection of the Collateral Trustee’s Liens to secure any such
Indebtedness contemplated by clause (b) above or Obligations in respect thereof are
satisfied (and the satisfaction of such requirements and the other provisions of this clause
(3) will be conclusively established if the Company delivers to the Collateral Trustee an
Officers’ Certificate stating that such requirements and other provisions have been
satisfied and that such Indebtedness is “Junior Lien Debt”).

     “Junior Lien Documents” means, collectively, the Second Lien Indenture and any indenture,
credit agreement or other agreement governing each Series of Junior Lien Debt and the security
documents related thereto.

     “Junior Lien Obligations” means Junior Lien Debt and all other Obligations in respect thereof,
together with Hedging Obligations that are secured, or intended to be secured, under the Junior
Lien Documents if the provider of such Hedging Obligations has agreed to be bound by the terms of
the Collateral Trust Agreement as a holder of Junior Lien Obligations or such provider’s interest
in the

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Collateral is subject to the terms of the Collateral Trust Agreement as a holder of Junior
Lien Obligations and if such Hedging Obligations are permitted to be incurred and so secured under
each applicable Secured Debt Document.

     “Junior Lien Representative” means the trustee, agent or representative of the holder of any
Series of Junior Lien Debt who maintains the transfer register for such Series of Junior Lien Debt
and (a) is appointed as a Junior Lien Representative (for purposes related to the administration of
the security documents) pursuant to the indenture, credit agreement or other agreement governing
such Series of Junior Lien Debt, together with its successors in such capacity and (b) has become a
party to the Collateral Trust Agreement by executing a joinder in the form required under the
Collateral Trust Agreement.

     “Legal Holiday” means a Saturday, a Sunday or a day on which banking institutions in the City
of New York or at a place of payment are authorized by law, regulation or executive order to remain
closed. If a payment date is a Legal Holiday at a place of payment, payment may be made at that
place on the next succeeding day that is not a Legal Holiday, and no interest shall accrue on such
payment for the intervening period.

     “Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security interest
or similar encumbrance of any kind in respect of such asset, whether or not filed, recorded or
otherwise perfected under applicable law (but excluding any lease or sublease pursuant to clauses
(13) or (14) of the definition of “Asset Sale”), including any conditional sale or other title
retention agreement, any option or other agreement to sell or give a security interest in and,
except in connection with any Qualified Receivables Transaction, any agreement to give any
financing statement under the Uniform Commercial Code (or equivalent statutes) of any jurisdiction.

     “Lien Sharing and Priority Confirmation” means:

     (1) as to any future Series of Priority Lien Debt, the written agreement of the holders
of such Series of Priority Lien Debt, as set forth in the indenture, credit agreement or
other agreement governing such Series of Priority Lien Debt, for the benefit of all holders
of Secured Debt and each future Secured Debt Representative:

     (A) that all Priority Lien Obligations will be and are secured equally and
ratably by all Priority Liens at any time granted by the Company to secure any
Obligations in respect of such Series of Priority Lien Debt, whether or not upon
property otherwise constituting Collateral, and that all such Priority Liens will be
enforceable by the Collateral Trustee for the benefit of all holders of Priority
Lien Obligations;

     (B) that the holders of Obligations in respect of such Series of Priority Lien
Debt are bound by the provisions of the Collateral Trust Agreement, including the
provisions relating to the ranking of Priority Liens and the order of application of
proceeds from enforcement of Priority Liens; and

     (C) consenting to the terms of the Collateral Trust Agreement and the
Collateral Trustee’s performance of, and directing the Collateral Trustee to perform
its obligations under, the Collateral Trust Agreement and the other Security
Documents; and

     (2) as to any Series of Junior Lien Debt, the written agreement of the holders of such
Series of Junior Lien Debt, as set forth in the indenture, credit agreement or other
agreement

21

 

governing such Series of Junior Lien Debt, for the benefit of all holders of Secured
Debt and each Secured Debt Representative:

     (A) that all Junior Lien Obligations will be and are secured equally and
ratably by all Junior Liens at any time granted by the Company to secure any
Obligations in respect of such Series of Junior Lien Debt, whether or not upon
property otherwise constituting collateral for such Series of Junior Lien Debt, and
that all such Junior Liens will be enforceable by the Collateral Trustee for the
benefit of all holders of Junior Lien Obligations;

     (B) that the holders of Obligations in respect of such Series of Junior Lien
Debt are bound by the provisions of the Collateral Trust Agreement, including the
provisions relating to the ranking of Junior Liens and the order of application of
proceeds from the enforcement of Junior Liens; and

     (C) consenting to the terms of the Collateral Trust Agreement and the
Collateral Trustee’s performance of, and directing the Collateral Trustee to perform
its obligations under, the Collateral Trust Agreement and the other Security
Documents.

     “Margin Stock” means as defined within Regulation U of the Board of Governors of the Federal
Reserve System of the United States.

     “Material Adverse Effect” means a material adverse effect on (a) the Collateral, taken as a
whole or (b) the Japan Routes.

     “Net Proceeds” means the aggregate cash proceeds and Cash Equivalents received by Parent or
any of its Restricted Subsidiaries in respect of any Asset Sale (including, without limitation, any
cash or Cash Equivalents received in respect of or upon the sale or other disposition of any
Designated Noncash Consideration or other non-cash consideration received in any Asset Sale), net
of: (a) the direct costs and expenses relating to such Asset Sale and the sale or disposition of
such Designated Noncash Consideration, including, without limitation, legal, accounting and
investment banking fees, and sales commissions, and any relocation expenses incurred as a result of
the Asset Sale, taxes paid or payable as a result of the Asset Sale, in each case, after taking
into account any available tax credits or deductions and any tax sharing arrangements; (b) any
reserve for adjustment or indemnification obligations in respect of the sale price of such asset or
assets established in accordance with GAAP; (c) all payments made on any Indebtedness (other than
Secured Debt) that is secured by a Permitted Lien on the assets subject to such Asset Sale, in
accordance with the terms of any Lien upon such assets, or that must by its terms, or in order to
obtain a necessary consent to such Asset Sale, or by applicable law be repaid out of the proceeds
from such Asset Sale; (d) all distributions and other payments required to be made to minority
interest holders in Subsidiaries or joint ventures as a result of such Asset Sale; and (e) any
portion of the purchase price from an Asset Sale placed in escrow pursuant to the terms of such
Asset Sale (either as a reserve for adjustment of the purchase price, or for satisfaction of
indemnities in respect of such Asset Sale) until the termination of such escrow.

     “Non-Recourse Debt” means Indebtedness:

     (1) as to which neither Parent nor any of its Restricted Subsidiaries (A) provides
credit support of any kind (including any undertaking, agreement or instrument that would
constitute Indebtedness) or (B) is directly or indirectly liable as a guarantor or
otherwise; and

22

 

     (2) as to which the holders of such Indebtedness do not otherwise have recourse to the
stock or assets of Parent or any of its Restricted Subsidiaries (other than the Equity
Interests of an Unrestricted Subsidiary).

     “Non-U.S. Person” means a Person who is not a U.S. Person.

     “Note Documents” means this Indenture, the Notes, the Note Guarantees, the Security Documents
and the Escrow and Security Agreement.

     “Note Guarantee” means the Guarantee by each Guarantor of the Company’s obligations under this
Indenture and the Notes, executed pursuant to the provisions of this Indenture.

     “Notes” has the meaning assigned to it in the preamble to this Indenture. The Initial Notes
and the Additional Notes shall be treated as a single class for all purposes under this Indenture,
and unless the context otherwise requires, all references to the Notes shall include the Initial
Notes and any Additional Notes.

     “Obligations” means any principal (including reimbursement obligations with respect to letters
of credit whether or not drawn), interest (including all interest accrued thereon after the
commencement of any insolvency or liquidation proceeding at the rate, including any applicable
post-default rate, specified in the Secured Debt Documents, even if such interest is not
enforceable, allowable or allowed as a claim in such proceeding), premium (if any), fees,
indemnifications, reimbursements, expenses and other liabilities payable under the documentation
governing any Indebtedness.

     “Offering Memorandum” means the offering memorandum, dated as of January 11, 2010, prepared in
connection with the sale and distribution of the Notes.

     “Officer” means, with respect to any Person, the Chairman of the Board, the Chief Executive
Officer, the President, the Chief Operating Officer, the Chief Financial Officer, the Treasurer,
any Assistant Treasurer, the Controller, the Secretary or any Vice-President of such Person.

     “Officers’ Certificate” means a certificate signed on behalf of the Company or Parent by two
Officers of the Company or Parent, as applicable, that meets the requirements of Section 13.03
hereof.

     “Opinion of Counsel” means a written opinion from legal counsel that meets the requirements of
Section 13.03 hereof. The counsel may be an employee of or counsel to Parent, any Subsidiary of
Parent or the Trustee.

     “Parent” means UAL Corporation, a Delaware corporation, and any and all successors pursuant to
Section 5.02 hereof.

     “Participant” means, with respect to the Depositary, Euroclear or Clearstream, a Person who
has an account with the Depositary, Euroclear or Clearstream, respectively (and, with respect to
DTC, shall include Euroclear and Clearstream).

     “Permitted Business” means any business that is the same as, or reasonably related, ancillary,
supportive or complementary to, the business in which the Company and the Guarantors are engaged on
the date of this Indenture.

23

 

     “Permitted Investments” means:

     (1) any Investment in Parent or in a Restricted Subsidiary of Parent;

     (2) any Investment in cash, Cash Equivalents and any foreign equivalents;

     (3) any Investment by Parent or any Restricted Subsidiary of Parent in a Person, if as
a result of such Investment:

     (A) such Person becomes a Restricted Subsidiary of Parent; or

     (B) such Person, in one transaction or a series of related and substantially
concurrent transactions, is merged, consolidated or amalgamated with or into, or
transfers or conveys substantially all of its assets to, or is liquidated into,
Parent or a Restricted Subsidiary of Parent;

     (4) any Investment made as a result of the receipt of non-cash consideration from an
Asset Sale that was made pursuant to and in compliance with Section 4.10 hereof;

     (5) any acquisition of assets or Capital Stock in exchange for the issuance of
Qualifying Equity Interests;

     (6) any Investments received in compromise or resolution of (A) obligations of trade
creditors or customers that were incurred in the ordinary course of business of Parent or
any of its Restricted Subsidiaries, including pursuant to any plan of reorganization or
similar arrangement upon the bankruptcy or insolvency of any trade creditor or customer or
(B) litigation, arbitration or other disputes;

     (7) Investments represented by Hedging Obligations;

     (8) loans or advances to officers, directors or employees made in the ordinary course
of business of Parent or any Restricted Subsidiary of Parent in an aggregate principal
amount not to exceed $7.0 million at any one time outstanding;

     (9) repurchases of the Notes;

     (10) any guarantee of Indebtedness permitted to be incurred pursuant to Section 4.09
hereof other than a guarantee of Indebtedness of an Affiliate of Parent that is not a
Restricted Subsidiary of Parent;

     (11) any Investment existing on, or made pursuant to binding commitments existing on,
the date of this Indenture and any Investment consisting of an extension, modification or
renewal of any Investment existing on, or made pursuant to a binding commitment existing on,
the date of this Indenture; provided that the amount of any such Investment may be increased
(A) as required by the terms of such Investment as in existence on the date of this
Indenture or (B) as otherwise permitted under this Indenture;

     (12) Investments acquired after the date of this Indenture as a result of the
acquisition by Parent or any Restricted Subsidiary of Parent of another Person, including by
way of a merger, amalgamation or consolidation with or into Parent or any of its Restricted
Subsidiaries in a transaction that is not prohibited by Section 5.01 hereof after the date
of this Indenture to the extent that such Investments were not made in contemplation of such
acquisition, merger,

24

 

amalgamation or consolidation and were in existence on the date of such acquisition,
merger, amalgamation or consolidation;

     (13) the acquisition by a Receivables Subsidiary in connection with a Qualified
Receivables Transaction of Equity Interests of a trust or other Person established by such
Receivables Subsidiary to effect such Qualified Receivables Transaction and any other
Investment by Parent or a Subsidiary of Parent in a Receivables Subsidiary or any Investment
by a Receivables Subsidiary in any other Person in connection with a Qualified Receivables
Transaction;

     (14) accounts receivable arising in the ordinary course of business;

     (15) Investments in connection with outsourcing initiatives in the ordinary course of
business;

     (16) Investments having an aggregate Fair Market Value (measured on the date each such
Investment was made and without giving effect to subsequent changes in value other than a
reduction for all returns of principal in cash and capital dividends in cash), when taken
together with all Investments made pursuant to this clause (16) that are at the time
outstanding, not to exceed $750.0 million at any one time outstanding in connection with (A)
travel or airline related businesses made in connection with marketing and promotion
agreements, alliance agreements, distribution agreements, agreements with respect to fuel
consortiums, agreements relating to flight training, agreements relating to insurance
arrangements, agreements relating to parts management systems and other similar agreements
or (B) joint ventures in existence on the date of this Indenture or formed thereafter; and

     (17) other Investments in any Person that do not involve properties or assets that
constitute Collateral, having an aggregate Fair Market Value (measured on the date each such
Investment was made and without giving effect to subsequent changes in value), when taken
together with all other Investments made pursuant to this clause (17) that are at the time
outstanding, not to exceed 3.0% of the total consolidated tangible assets of Parent and its
Restricted Subsidiaries at the time of such Investment.

     “Permitted Liens” means:

     (1) Priority Liens held by the Collateral Trustee securing (A) Priority Lien Debt in an
aggregate principal amount (as of the date of incurrence of any Priority Lien Debt and after
giving pro forma effect to the application of the net proceeds therefrom), not exceeding the
Priority Lien Cap and (B) all other Priority Lien Obligations;

     (2) Junior Liens held by the Collateral Trustee securing (A)(i) Junior Lien Debt
(including all Permitted Refinancing Indebtedness secured by a Junior Lien permitted by
clause (A)(ii) below and together with all Third Lien Debt at the time outstanding) in an
aggregate principal amount (as of the date of incurrence of any such Junior Lien Debt and
after giving pro forma effect to the application of the net proceeds therefrom), not
exceeding $300.0 million at any one time outstanding and (ii) Permitted Refinancing
Indebtedness the proceeds of which are applied to renew, refund, extend, refinance, replace,
defease or discharge any Junior Lien Debt or other Junior Lien Obligations and (B) all other
Junior Lien Obligations; provided, that all such Junior Liens contemplated by this clause
(2) are made junior to the Priority Lien Obligations pursuant to the Collateral Trust
Agreement;

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     (3) Liens on Collateral securing (A)(i) Third Lien Debt (including all Permitted
Refinancing Indebtedness secured by a Lien permitted by clause (A)(ii) below and together
with all Junior Lien Debt at the time outstanding) in an aggregate principal amount (as of
the date of incurrence of any such Third Lien Debt and after giving pro forma effect to the
application of the net proceeds therefrom), not exceeding the Subordinated Lien Cap and (ii)
Permitted Refinancing Indebtedness the proceeds of which are applied to renew, refund,
refinance, extend, replace, defease or discharge any Third Lien Debt or other Third Lien
Obligations and (B) all other Third Lien Obligations;

     (4) Liens for taxes, assessments or governmental charges or claims that are not yet
delinquent or that are being contested in good faith by appropriate proceedings promptly
instituted and diligently concluded; provided that any reserve or other appropriate
provision as is required in conformity with GAAP has been made therefor;

     (5) Liens imposed by law, including carrier’s, warehousemen’s, landlord’s and
mechanics’ Liens, in each case, incurred in the ordinary course of business;

     (6) Liens arising by operation of law in connection with judgments, attachments or
awards which do not constitute an Event of Default hereunder;

     (7) Liens created for the benefit of (or to secure) the Notes (or the Note Guarantees);

     (8) Liens on accounts receivables and related assets of the type specified in the
definition of “Qualified Receivables Transaction,” incurred in connection with a Qualified
Receivables Transaction;

     (9) (A) any overdrafts and related liabilities arising from treasury, netting,
depository and cash management services or in connection with any automated clearing house
transfers of funds, in each case as it relates to Cure Collateral, if any and (B) Liens
arising by operation of law or that are contractual rights of set-off in favor of the
depository bank or securities intermediary in respect of the Collateral Proceeds Account;

     (10) licenses, sublicenses, leases and subleases by the Company as they relate to Cure
Collateral and to the extent (A) such licenses, sublicenses, leases or subleases do not
interfere in any material respect with the business of Parent and its Restricted
Subsidiaries, taken as a whole, and in each case, such license, sublicense, lease or
sublease is to be subject to the Liens granted to the Collateral Trustee pursuant to the
Security Documents or (B) otherwise expressly permitted by the Security Documents;

     (11) easements (including, without limitation, reciprocal easement agreements and
utility agreements), rights-of-way, covenants, reservations, encroachments, land use
restrictions, encumbrances or other similar matters and title defects, in each case as they
relate to Real Property Assets, which (A) do not interfere materially with the ordinary
conduct of the business of the Company or its utilization of such property, (B) do not
materially detract from the value of the property to which they attach or materially impair
the use thereof to the Company and (C) do not materially adversely affect the marketability
of the applicable property;

     (12) salvage or similar rights of insurers, in each case as it relates to Cure
Collateral, if any;

26

 

     (13) Liens pursuant to the Credit Agreement and the Co-Branded Agreement that are
required to be released pursuant to the Escrow Conditions; provided that upon the Release
Date this clause (13) will no longer be applicable to the Notes and have no force and
effect; and

     (14) Liens incurred in the ordinary course of business of Parent or any Restricted
Subsidiary of Parent with respect to obligations that do not exceed $7.0 million at any one
time outstanding.

     “Permitted Refinancing Indebtedness” means any Indebtedness of Parent or any of its Restricted
Subsidiaries issued in exchange for, or the net proceeds of which are used to renew, refund,
extend, refinance, replace, defease or discharge other Indebtedness of Parent or any of its
Restricted Subsidiaries (other than intercompany Indebtedness); provided that:

     (1) the principal amount (or accreted value, if applicable) of such Permitted
Refinancing Indebtedness does not exceed the original principal amount (or accreted value,
if applicable) of the Indebtedness renewed, refunded, extended, refinanced, replaced,
defeased or discharged (plus all accrued interest on the Indebtedness and the amount of all
fees and expenses, including premiums, incurred in connection therewith);

     (2) if such Permitted Refinancing Indebtedness has a maturity date that is after the
maturity date of the Notes (with any amortization payment comprising such Permitted
Refinancing Indebtedness being treated as maturing on its amortization date), such Permitted
Refinancing Indebtedness has a Weighted Average Life to Maturity that is (A) equal to or
greater than the Weighted Average Life to Maturity of, the Indebtedness being renewed,
refunded, extended, refinanced, replaced, defeased or discharged or (B) more than 90 days
after the final maturity date of the Notes;

     (3) if the Indebtedness being renewed, refunded, extended, refinanced, replaced,
defeased or discharged is subordinated in right of payment to the Notes, such Permitted
Refinancing Indebtedness is subordinated in right of payment to the Notes on terms at least
as favorable to the Holders of Notes as those contained in the documentation governing the
Indebtedness being renewed, refunded, extended, refinanced, replaced, defeased or
discharged;

     (4) no Restricted Subsidiary that is not a Guarantor shall be an obligor with respect
to such Permitted Refinancing Indebtedness unless such non-Guarantor Restricted Subsidiary
was an obligor with respect to the Indebtedness being renewed, refunded, extended,
refinanced, replaced, defeased or discharged; and

     (5) notwithstanding that the Indebtedness being renewed, refunded, refinanced,
extended, replaced, defeased or discharged may have been repaid or discharged by Parent or
any of its Restricted Subsidiaries prior to the date on which the new Indebtedness is
incurred, Indebtedness that otherwise satisfies the requirements of this definition may be
designated as Permitted Refinancing Indebtedness so long as such renewal, refunding,
refinancing, extension, replacement, defeasance or discharge occurred not more than 36
months prior to the date of such incurrence of Permitted Refinancing Indebtedness.

     “Person” means any individual, corporation, partnership, joint venture, association,
joint-stock company, trust, unincorporated organization, limited liability company or government or
other entity.

     “Priority Lien” means a Lien granted by a Security Document to the Collateral Trustee, at any
time, upon any property of the Company to secure Priority Lien Obligations.

27

 

     “Priority Lien Cap” means $500.0 million (plus the aggregate amount of accrued interest and
the amount of all fees and expenses, including premiums, paid or incurred in connection with any
refunding, replacement or other refinancing of Priority Lien Debt with the proceeds of other
Priority Lien Debt that was permitted to be incurred under this Indenture), minus the aggregate
amount of all Net Proceeds of any Sale of Collateral applied by the Company since the date of this
Indenture to repay or redeem Notes or any Priority Lien Debt under a Credit Facility that is term
Indebtedness or to repay other Priority Lien Debt or to repay Priority Lien Debt under a Credit
Facility that is revolving credit Indebtedness and effect a corresponding commitment reduction
thereunder pursuant to Section 4.10 hereof, and minus the principal amount of any Permitted
Refinancing Indebtedness not constituting Priority Lien Debt the proceeds of which are applied to
refinance, refund, repay, redeem, defease or otherwise acquire or retire for value any Priority
Lien Debt.

     “Priority Lien Debt” means:

     (1) the Initial Notes; and

     (2) additional notes issued under any indenture (including this Indenture) or other
Indebtedness (including letters of credit and reimbursement obligations with respect thereto
but excluding Hedging Obligations) of the Company that is secured equally and ratably with
the Notes on a priority basis by a Priority Lien that is permitted to be incurred and so
secured under each applicable Secured Debt Document; provided, in the case of any
Indebtedness referred to in this clause (2), that:

     (A) on or before the date on which such future Indebtedness is incurred by the
Company, such Indebtedness is designated by the Company, in an Officers’ Certificate
delivered to each Priority Lien Representative and the Collateral Trustee, as
“Priority Lien Debt” for purposes of the Secured Debt Documents; provided that no
Series of Secured Debt may be designated as both Junior Lien Debt and Priority Lien
Debt;

     (B) the Priority Lien Representative for such Indebtedness executes a joinder
in the form required under the Collateral Trust Agreement and such Indebtedness is
governed by a credit agreement or other agreement that includes a Lien Sharing and
Priority Confirmation;

     (C) all requirements set forth in the Collateral Trust Agreement as to the
confirmation, grant or perfection of the Collateral Trustee’s Priority Lien to
secure such Indebtedness or Obligations in respect thereof are satisfied (and the
satisfaction of such requirements and the other provisions of this clause (C) will
be conclusively established if the Company delivers to the Collateral Trustee an
Officers’ Certificate stating that such requirements and other provisions have been
satisfied and that such Indebtedness is “Priority Lien Debt”); and

     (D) such Indebtedness (i) matures after the final maturity date of the Notes
and (ii) has a Weighted Average Life to Maturity greater than the Weighted Average
Life to Maturity of the Notes.

     For the avoidance of doubt, Banking Product Obligations and Hedging Obligations do not
constitute Priority Lien Debt, but may constitute Priority Lien Obligations.

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     “Priority Lien Debt Value Ratio” means, as of any date of determination, the ratio of (a) the
Appraised Value of the Collateral as of that date to (b) the aggregate principal amount of Priority
Lien Debt outstanding as of that date (with letters of credit being deemed to have a principal
amount equal to the maximum potential liability of Parent and its Restricted Subsidiaries
thereunder).

     “Priority Lien Documents” means this Indenture, any other Credit Facility pursuant to which
any Priority Lien Debt is incurred, any Hedge Agreement pursuant to which any Hedging Obligations
constituting Priority Lien Obligations are incurred, any agreement pursuant to which any Banking
Product Obligations constituting Priority Lien Obligations are incurred and the Security Documents.

     “Priority Lien Obligations” means the Priority Lien Debt and all other Obligations in respect
of Priority Lien Debt, together with the sum of (a) Hedging Obligations evidenced by a Hedge
Agreement that includes a Lien Sharing and Priority Confirmation and meets all of the other
requirements of the Collateral Trust Agreement to be Priority Lien Obligations and that have been
designated as “Priority Lien Obligations” in an Officers’ Certificate delivered to the Collateral
Trustee on the date on which the Hedge Agreement relating to such Hedging Obligation was entered
into (1) having an aggregate “settlement amount” (or similar term) (as defined in the applicable
Hedge Agreement relating to Priority Lien Obligations consisting of a Hedging Obligation) or (2),
with respect to any such Hedge Agreement that has been terminated in accordance with its terms, the
amount then due and payable (exclusive of expenses and similar payments but including any
termination payments then due) under such Hedge Agreement, under all Hedge Agreements relating to
Priority Lien Obligations consisting of Hedging Obligations, minus the aggregate amount of all Net
Proceeds of any Sale of Collateral applied by the Company since the date of this Indenture to repay
any Hedging Obligations pursuant to the terms of the Priority Lien Documents under which such
Hedging Obligations are secured or intended to be secured; provided that the “settlement amount”
(or similar term) as of the last Business Day of the month preceding any date of determination
shall be calculated by the appropriate swap counterparties and reported to the Collateral Trustee
upon request plus (b) Banking Product Obligations of the Company that are evidenced by an agreement
that includes a Lien Sharing and Priority Confirmation and meets all of the other requirements of
the Collateral Trust Agreement to be Priority Lien Obligations and that have been designated as
“Priority Lien Obligations” in an Officers’ Certificate delivered to the Collateral Trustee on the
date on which the agreement relating to such Banking Product Obligation was entered into, in an
aggregate amount not to exceed, together with the amounts referred to in clause (a) above, $15.0
million.

     “Priority Lien Representative” means (a) in the case of the Notes, the Trustee or (b) in the
case of any other Series of Priority Lien Debt, the trustee, agent or representative of the Holders
of such Series of Priority Lien Debt who maintains the transfer register for such Series of
Priority Lien Debt and is appointed as a representative of the Priority Lien Debt (for purposes
related to the administration of the security documents) pursuant to the credit agreement or other
agreement governing such Series of Priority Lien Debt.

     “Private Placement Legend” means the legend set forth in Section 2.06(f)(1) hereof to be
placed on all Notes issued under this Indenture except where otherwise permitted by the provisions
of this Indenture.

     “QEC Kits” means the quick engine change kits of the Company.

     “QIB” means a “qualified institutional buyer” as defined in Rule 144A.

     “Qualified Receivables Transaction” means any transaction or series of transactions entered
into by Parent or any of its Subsidiaries pursuant to which Parent or any of its Subsidiaries
sells, conveys or

29

 

otherwise transfers to (a) a Receivables Subsidiary or any other Person (in the case of a
transfer by Parent or any of its Subsidiaries) and (b) any other Person (in the case of a transfer
by a Receivables Subsidiary), or grants a security interest in, any accounts receivable (whether
now existing or arising in the future) of Parent or any of its Subsidiaries, and any assets related
thereto including, without limitation, all Equity Interests and other investments in the
Receivables Subsidiary, all collateral securing such accounts receivable, all contracts and all
guarantees or other obligations in respect of such accounts receivable, proceeds of such accounts
receivable and other assets which are customarily transferred or in respect of which security
interests are customarily granted in connection with asset securitization transactions involving
accounts receivable, other than assets that constitute Collateral or proceeds of Collateral.

     “Qualified Replacement Assets” means any aircraft, spare engines, Asian Pacific Routes, Asian
Pacific Slots or Asian Pacific Gate Leaseholds (a) which the Company owns or in which the Company
has any rights or the power to transfer rights, (b) in which the Company pledges such ownership
interests or rights as Collateral under the Security Documents to secure Secured Debt Obligations
and (c) which are subject to a perfected Secured Debt Lien in favor of the Collateral Trustee for
the benefit of the holders of the Secured Debt Obligations subject only to Permitted Liens,
pursuant to arrangements reasonably satisfactory to the Collateral Trustee.

     “Qualifying Equity Interests” means Equity Interests of Parent other than Disqualified Stock.

     “Real Estate Mortgages” means, collectively, each mortgage granted pursuant to the terms of
this Indenture, as the same may be amended, restated, modified, supplemented, extended or amended
and restated from time to time.

     “Real Property Assets” means those certain parcels of real property owned in fee by the
Company and located at (a) 1200 Algonquin Road, Elk Grove Village, Illinois 60007 and (b) the
Denver Training Facility and together with, in each case, all buildings, improvements, facilities,
appurtenant fixtures and equipment, easements and other property and rights incidental or
appurtenant to the ownership of such parcel of real property (as each such real property is more
particularly described in the applicable Real Estate Mortgage) (including, without limitation, all
collateral described in the applicable Real Estate Mortgage) and, from time to time, all collateral
identified in a Real Estate Mortgage granted pursuant to the terms of this Indenture and designated
as Cure Collateral in accordance with Sections 4.20 and 4.21 hereof.

     “Receivables Subsidiary” means a Subsidiary of Parent which engages in no activities other
than in connection with the financing of accounts receivable and which is designated by the Board
of Directors of Parent (as provided below) as a Receivables Subsidiary (a) no portion of the
Indebtedness or any other Obligations (contingent or otherwise) of which (1) is guaranteed by
Parent or any Restricted Subsidiary of Parent (other than comprising a pledge of the Capital Stock
or other interests in such Receivables Subsidiary (an “incidental pledge”), and excluding any
guarantees of Obligations (other than the principal of, and interest on, Indebtedness) pursuant to
representations, warranties, covenants and indemnities entered into in the ordinary course of
business in connection with a Qualified Receivables Transaction), (2) is recourse to or obligates
Parent or any Restricted Subsidiary of Parent in any way other than through an incidental pledge
pursuant to representations, warranties, covenants and indemnities entered into in the ordinary
course of business in connection with a Qualified Receivables Transaction or (3) subjects any
property or asset of Parent or any Subsidiary of Parent (other than accounts receivable and related
assets as provided in the definition of “Qualified Receivables Transaction”), directly or
indirectly, contingently or otherwise, to the satisfaction thereof, other than pursuant to
representations, warranties, covenants and indemnities entered into in the ordinary course of
business in connection with a Qualified Receivables Transaction, (b) with which neither Parent nor
any Subsidiary of Parent has any material contract, agreement, arrangement or understanding (other
than pursuant to the Qualified Receivables Transaction)

30

 

other than on terms no less favorable to Parent or such Subsidiary than those that might be
obtained at the time from Persons who are not Affiliates of Parent, other than fees payable in the
ordinary course of business in connection with servicing accounts receivable and (c) with which
neither Parent nor any Subsidiary of Parent has any obligation to maintain or preserve such
Subsidiary’s financial condition, other than a minimum capitalization in customary amounts, or
cause such Subsidiary to achieve certain levels of operating results. Any such designation by the
Board of Directors of Parent will be evidenced to the Trustee by filing with the Trustee a
certified copy of the resolution of the Board of Directors of Parent giving effect to such
designation and an Officers’ Certificate certifying that such designation complied with the
foregoing conditions.

     “Regulation S” means Regulation S promulgated under the Securities Act, as it may be amended
from time to time, and any successor provision thereto.

     “Regulation S Global Note” means a Global Note substantially in the form of Exhibit A hereto
bearing the Global Note Legend and the Private Placement Legend and deposited with or on behalf of
and registered in the name of the Depositary or its nominee, issued in a denomination equal to the
outstanding principal amount of the Notes sold in reliance on Rule 903 of Regulation S.

     “Release Date” has the meaning set forth in the Collateral Trust Agreement.

     “Responsible Officer” when used with respect to the Trustee, means any officer within the
Corporate Trust Office of the Trustee (or any successor group of the Trustee) or any other officer
of the Trustee customarily performing functions similar to those performed by any of the above
designated officers and also means, with respect to a particular corporate trust matter, any other
officer to whom such matter is referred because of his knowledge of and familiarity with the
particular subject.

     “Restricted Definitive Note” means a Definitive Note bearing the Private Placement Legend.

     “Restricted Global Note” means a Global Note bearing the Private Placement Legend.

     “Restricted Investment” means an Investment other than a Permitted Investment.

     “Restricted Period” means the 40-day distribution compliance period as defined in Regulation
S.

     “Restricted Subsidiary” of a Person means any Subsidiary of the referent Person that is not an
Unrestricted Subsidiary.

     “Route” means the authority the Company now holds, or hereafter acquires from the DOT pursuant
to Title 49 or other applicable law, to operate scheduled foreign air transportation of persons,
property and mail, including applicable designations, frequencies, certificates, Fifth-Freedom
Rights and “behind and beyond rights,” in each case whether or not utilized by the Company.

     “Rule 144” means Rule 144 promulgated under the Securities Act.

     “Rule 144A” means Rule 144A promulgated under the Securities Act.

     “Rule 903” means Rule 903 promulgated under the Securities Act.

     “Rule 904” means Rule 904 promulgated under the Securities Act.

     “SEC” means the Securities and Exchange Commission.

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     “Securities Act” means the Securities Act of 1933, as amended.

     “Sale of Collateral” means any Asset Sale to the extent involving a sale, lease or other
disposition of Japan Slots or Japan Gate Leaseholds or any property or asset that constitutes
Collateral. For the avoidance of doubt, the Company will not sell, lease, convey, transfer or
otherwise dispose of the Japan Routes.

     “Second Lien Escrow and Security Agreement” means that certain escrow and security agreement,
dated as of the date of the Second Lien Indenture, among the Company, The Bank of New York Mellon
Trust Company, N.A., as trustee, and The Bank of New York Mellon Trust Company, N.A., as escrow
agent, for the sole benefit of the holders of the Second Lien Notes, as such agreement may be
amended, amended and restated, adjusted, supplemented or otherwise modified from time to time.

     “Second Lien Indenture” means the indenture, dated as of the date of this Indenture, among the
Company, the Guarantors, The Bank of New York Mellon Trust Company, N.A., as trustee, and
Wilmington Trust FSB, as collateral trustee, governing the Second Lien Notes, as amended, amended
and restated, adjusted, supplemented or otherwise modified from time to time.

     “Second Lien Notes” means $200.0 million in aggregate principal amount of the Company’s
12.000% Senior Second Lien Notes due 2013.

     “Secured Debt” means Priority Lien Debt and Junior Lien Debt.

     “Secured Debt Documents” means the Priority Lien Documents and Junior Lien Documents.

     “Secured Debt Lien” means a Lien granted by a Security Document to the Collateral Trustee, at
any time, upon any property of the Company to secure Secured Debt Obligations.

     “Secured Debt Obligations” means Priority Lien Obligations and Junior Lien Obligations.

     “Secured Debt Representative” means each Junior Lien Representative and each Priority Lien
Representative.

     “Secured Parties” means the holders of Secured Debt Obligations and the Secured Debt
Representatives.

     “Security Documents” means the Collateral Trust Agreement, each Lien Sharing and Priority
Confirmation, and all security agreements, pledge agreements, collateral assignments, mortgages,
deeds of trust, collateral agency agreements, control agreements or other grants or transfers for
security executed and delivered by the Company creating (or purporting to create) a Lien upon
Collateral in favor of the Collateral Trustee, for the benefit of the Secured Parties, in each
case, as amended, amended and restated, modified, renewed, restated or replaced, in whole or in
part, from time to time, in accordance with its terms and Section 7.1 of the Collateral Trust
Agreement; provided, that the Escrow and Security Agreement shall not be deemed a “Security
Document.”

     “Series of Junior Lien Debt” means, severally, the Second Lien Notes and each issue or series
of Junior Lien Debt for which a single transfer register is maintained and any other Indebtedness
under any other indenture or Credit Facility that constitutes Junior Lien Obligations.

     “Series of Priority Lien Debt” means, severally, the Notes, any additional notes or other
indebtedness under any other indenture or Credit Facility that constitutes Priority Lien
Obligations.

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     “Series of Secured Debt” means, severally, each Series of Junior Lien Debt and each Series of
Priority Lien Debt.

     “Significant Subsidiary” means any Restricted Subsidiary that would be a “significant
subsidiary” as defined in Article 1, Rule 1-02 of Regulation S-X, promulgated pursuant to the
Securities Act, as such Regulation is in effect on the date of this Indenture.

     “Slot” means (a) in the case of airports outside the United States, at any time, the right and
operational authority to conduct one landing or takeoff at a specific time or during a specific
time period or (b) in the case of airports in the United States, at any time, the right and
operational authority to conduct one Instrument Flight Rule (as defined in Title 14) scheduled
landing or takeoff operation at a specific time or during a specific time period at any airport at
which landings or takeoffs are restricted, including, without limitation, slots, arrival and
operating authorizations, whether pursuant to FAA or DOT regulations or orders pursuant to Title
14, Title 49 or other federal statutes now or hereinafter in effect.

     “Special Interest” means additional interest on all outstanding Notes in an amount equal to
2.0% per annum of the principal amount of such Notes, payable as described (a) in clause (4)(B)(i)
of Section 4.10(a) hereof and (b) in Section 4.20 hereof; provided that in no event will the
aggregate amount of Special Interest payable at any one time pursuant to clauses (a) and (b) above
together exceed 2.0% per annum of the principal amount of such Notes. For the avoidance of doubt,
Special Interest payable pursuant to clauses (a) and (b) above are independent obligations governed
by separate provisions of this Indenture and the termination of the obligation to pay Special
Interest under one such provision does not automatically terminate the obligation to pay Special
Interest under the other provision. Special Interest payable pursuant to clauses (a) or (b) above
will be calculated and paid in the same manner as regular interest is calculated and paid under
this Indenture and all references to payments of interest will be deemed to include Special
Interest, if applicable.

     “Standard Securitization Undertakings” means all representations, warranties, covenants,
indemnities, performance Guarantees and servicing obligations entered into by Parent or any
Subsidiary (other than a Receivables Subsidiary), which are customary in connection with any
Qualified Receivables Transaction.

     “Stated Maturity” means, with respect to any installment of interest or principal on any
series of Indebtedness, the date on which the payment of interest or principal was scheduled to be
paid in the documentation governing such Indebtedness as of the date of this Indenture, and will
not include any contingent obligations to repay, redeem or repurchase any such interest or
principal prior to the date originally scheduled for the payment thereof.

     “Subordinated Lien Cap” means as of any date of determination, the aggregate amount of Junior
Lien Debt and/or Third Lien Debt that may be incurred by the Company such that, after giving pro
forma effect to such incurrence and the application of the net proceeds therefrom the Total
Appraised Value Ratio would be no less than 1.0 to 1.0.

     “Subsidiary” means, with respect to any specified Person:

     (1) any corporation, association or other business entity (other than a partnership,
joint venture or limited liability company) of which more than 50% of the total voting power
of shares of Capital Stock entitled (without regard to the occurrence of any contingency and
after giving effect to any voting agreement or stockholders’ agreement that effectively
transfers voting power) to vote in the election of directors, managers or trustees of the
corporation, association or

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other business entity is at the time of determination owned or controlled, directly or
indirectly, by such Person or one or more of the other Subsidiaries of that Person (or a
combination thereof); and

     (2) any partnership, joint venture or limited liability company of which (A) more than
50% of the capital accounts, distribution rights, total equity and voting interests or
general and limited partnership interests, as applicable, are owned or controlled, directly
or indirectly, by such Person or one or more of the other Subsidiaries of that Person or a
combination thereof, whether in the form of membership, general, special or limited
partnership interests or otherwise and (B) such Person or any Subsidiary of such Person is a
controlling general partner or otherwise controls such entity.

     “Third Lien Debt” means Indebtedness secured by Liens on Collateral that are subordinated to
Priority Lien Obligations and Junior Lien Obligations on terms that are substantially identical (as
conclusively determined in good faith by an Officer of the Company and evidenced in an Officers’
Certificate delivered to the Trustee) to the subordination provisions applicable to Junior Lien
Obligations set forth in the Collateral Trust Agreement as of the date of this Indenture that
subordinate the Junior Lien Obligations to the Priority Lien Obligations.

     “Third Lien Obligations” means all Obligations in respect of Third Lien Debt, including
Hedging Obligations that are secured, or intended by the Company to be secured, by a Lien on
Collateral that is pari passu with the Lien securing Third Lien Debt, including subordination to
Priority Lien Obligations and Junior Lien Obligations on terms that are substantially identical (as
conclusively determined in good faith by an officer of the Company and evidenced in an Officers’
Certificate delivered to the Trustee) to the subordination provisions applicable to Junior Lien
Obligations set forth in the Collateral Trust Agreement as of the date of this Indenture.

     “Title 14” means Title 14 of the U.S. Code of Federal Regulations, including Part 93, Subparts
K and S thereof, as amended from time to time or any successor or recodified regulation.

     “Title 49” means Title 49 of the U.S. Code, which, among other things, recodified and replaced
the U.S. Federal Aviation Act of 1958, and the rules and regulations promulgated pursuant thereto
or any subsequent legislation that amends, supplements or supersedes such provisions.

     “Total Appraised Value Ratio” means, as of any date of determination, the ratio of (a) the
Appraised Value of the Collateral as of that date to (b) the aggregate principal amount of Secured
Debt and Third Lien Debt outstanding as of that date (with letters of credit being deemed to have a
principal amount equal to the maximum potential liability of Parent and its Restricted Subsidiaries
thereunder), excluding Hedging Obligations.

     “Treasury Rate” means, as of any redemption date, the yield to maturity as of such redemption
date of U.S. Treasury securities with a constant maturity (as compiled and published in the most
recent Federal Reserve Statistical Release H.15 (519) that has become publicly available at least
two Business Days prior to the redemption date (or, if such Statistical Release is no longer
published, any publicly available source of similar market data)) most nearly equal to the period
from the redemption date to February 1, 2012; provided, however, that if the period from the
redemption date to February 1, 2012 is less than one year, the weekly average yield on actually
traded U.S. Treasury securities adjusted to a constant maturity of one year will be used.

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     “Trustee” means The Bank of New York Mellon Trust Company, N.A. until a successor replaces it
in accordance with the applicable provisions of this Indenture and thereafter means the successor
serving hereunder.

     “Uniform Commercial Code” means the Uniform Commercial Code as in effect from time to time in
any applicable jurisdiction.

     “United States Citizen” means a Person meeting the definition set forth in Section
40102(a)(15) of Title 49, as such term has been interpreted by the DOT.

     “Unrestricted Definitive Note” means a Definitive Note that does not bear and is not required
to bear the Private Placement Legend.

     “Unrestricted Global Note” means a Global Note that does not bear and is not required to bear
the Private Placement Legend.

     “Unrestricted Subsidiary” means any Subsidiary of Parent (except the Company) that is
designated by the Board of Directors of Parent as an Unrestricted Subsidiary in compliance with
Section 4.18 hereof pursuant to a resolution of the Board of Directors, but only to the extent that
such Subsidiary:

     (1) has no Indebtedness other than Non-Recourse Debt;

     (2) except as permitted by Section 4.11 hereof, is not party to any agreement,
contract, arrangement or understanding with Parent or any Restricted Subsidiary of Parent
unless the terms of any such agreement, contract, arrangement or understanding are no less
favorable to Parent or such Restricted Subsidiary than those that might be obtained at the
time from Persons who are not Affiliates of Parent;

     (3) is a Person with respect to which neither Parent nor any of its Restricted
Subsidiaries has any direct or indirect obligation (A) to subscribe for additional Equity
Interests or (B) to maintain or preserve such Person’s financial condition or to cause such
Person to achieve any specified levels of operating results; and

     (4) has not guaranteed or otherwise directly or indirectly provided credit support for
any Indebtedness of Parent or any of its Restricted Subsidiaries.

     “U.S. Person” means a U.S. Person as defined in Rule 902(k) promulgated under the Securities
Act.

     “Use or Lose Rule” means, with respect to Slots, any applicable utilization requirements
issued by the FAA, other Governmental Authorities, any Foreign Aviation Authorities or any Airport
Authorities, including the terms of Section 93.227 of Title 14 to the extent applicable.

     “Voting Stock” of any specified Person as of any date means the Capital Stock of such Person
that is at the time entitled to vote in the election of the Board of Directors of such Person.

     “Weighted Average Life to Maturity” means, when applied to any Indebtedness at any date, the
number of years obtained by dividing:

     (1) the sum of the products obtained by multiplying (A) the amount of each then
remaining installment, sinking fund, serial maturity or other required payments of
principal,

35

 

including payment at final maturity, in respect of the Indebtedness, by (B) the number
of years (calculated to the nearest one-twelfth) that will elapse between such date and the
making of such payment; by

     (2) the then outstanding principal amount of such Indebtedness.

Section 1.02 Other Definitions.

	 	 	 	 	 
	 	 	Defined in
	Term	 	Section
	“Affiliate Transaction”

	 	 	4.11	 
	“Asset Sale Offer”

	 	 	4.10	 
	“Authentication Order”

	 	 	2.02	 
	“Calculation Date”

	 	 	1.01	 
	“Change of Control Offer”

	 	 	4.15	 
	“Change of Control Payment”

	 	 	4.15	 
	“Change of Control Payment Date”

	 	 	4.15	 
	“Collateral Proceeds Account”

	 	 	4.10	 
	“Consideration Remainder”

	 	 	4.10	 
	“Covenant Defeasance”

	 	 	8.03	 
	“disposition”

	 	 	1.01	 
	“DTC”

	 	 	2.03	 
	“Event of Default”

	 	 	6.01	 
	“Excess Proceeds”

	 	 	4.10	 
	“incur”

	 	 	4.09	 
	“Legal Defeasance”

	 	 	8.02	 
	“Offer Amount”

	 	 	3.10	 
	“Offer Period”

	 	 	3.10	 
	“Other Offer Notes”

	 	 	4.10	 
	“Paying Agent”

	 	 	2.03	 
	“Permitted Debt”

	 	 	4.09	 
	“Permitted Person”

	 	 	1.01	 
	“Purchase Date”

	 	 	3.10	 
	“Reference Date”

	 	 	4.20	 
	“Registrar”

	 	 	2.03	 
	“Restricted Payments”

	 	 	4.07	 
	“Sale of Collateral Consideration”

	 	 	4.10	 
	“Sale of Collateral Offer”

	 	 	4.10	 
	“Special Scheduled Maturity Date”

	 	 	3.09	 
	“Special Scheduled Maturity Date Price”

	 	 	3.09	 

Section 1.03 Rules of Construction.

     Unless the context otherwise requires:

     (1) a term has the meaning assigned to it;

     (2) an accounting term not otherwise defined has the meaning assigned to it in
accordance with GAAP;

     (3) “or” is not exclusive;

36

 

     (4) words in the singular include the plural, and in the plural include the singular;

     (5) “will” shall be interpreted to express a command;

     (6) provisions apply to successive events and transactions;

     (7) “including” means including without limitation; and

     (8) references to sections of or rules under the Securities Act or the Exchange Act
will be deemed to include substitute, replacement of successor sections or rules adopted by
the SEC from time to time.

ARTICLE 2

THE NOTES

Section 2.01 Form and Dating.

     (a) General. The Notes and the Trustee’s certificate of authentication will be substantially
in the form of Exhibit A hereto. The Notes may have notations, legends or endorsements required by
law, stock exchange rule or usage. Each Note will be dated the date of its authentication. The
Notes shall be in denominations of $2,000 and integral multiples of $1,000 in excess thereof.

     The terms and provisions contained in the Notes will constitute, and are hereby expressly
made, a part of this Indenture and the Company, the Guarantors, the Trustee and the Collateral
Trustee, by their execution and delivery of this Indenture, expressly agree to such terms and
provisions and to be bound thereby. However, to the extent any provision of any Note conflicts
with the express provisions of this Indenture, the provisions of this Indenture shall govern and be
controlling.

     (b) Global Notes. Global Notes will be substantially in the form of Exhibit A hereto
(including the Global Note Legend set forth in Section 2.06(f) hereof and the “Schedule of
Exchanges of Interests in the Global Note” attached thereto). Definitive Notes will be
substantially in the form of Exhibit A hereto (but without the Global Note Legend and without the
“Schedule of Exchanges of Interests in the Global Note” attached thereto). Each Global Note will
represent such of the outstanding Notes as will be specified therein and each shall provide that it
represents the aggregate principal amount of outstanding Notes from time to time endorsed thereon
and that the aggregate principal amount of outstanding Notes represented thereby may from time to
time be reduced or increased, as appropriate, to reflect exchanges and redemptions. Any
endorsement of a Global Note to reflect the amount of any increase or decrease in the aggregate
principal amount of outstanding Notes represented thereby will be made by the Trustee or the
Custodian, at the direction of the Trustee, in accordance with instructions given by the Holder
thereof as required by Section 2.06 hereof.

     (c) Euroclear and Clearstream Procedures Applicable. The provisions of the “Operating
Procedures of the Euroclear System” and “Terms and Conditions Governing Use of Euroclear” and the
“General Terms and Conditions of Clearstream Banking” and “Customer Handbook” of Clearstream and,
in each case, any successor provisions, will be applicable to transfers of beneficial interests in
the Regulation S Global Notes that are held by Participants through Euroclear or Clearstream.

Section 2.02 Execution and Authentication.

     At least one Officer must sign the Notes for the Company by manual or facsimile signature.

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     If an Officer whose signature is on a Note no longer holds that office at the time a Note is
authenticated, the Note will nevertheless be valid.

     A Note will not be valid until authenticated by the manual signature of the Trustee. The
signature will be conclusive evidence that the Note has been authenticated under this Indenture.

     The Trustee will, upon receipt of a written order of the Company signed by an Officer (an
“Authentication Order”), authenticate Notes for original issue that may be validly issued under
this Indenture, including any Additional Notes issued on or after the Release Date pursuant to
Section 2.14 hereof. The aggregate principal amount of Notes outstanding at any time may not
exceed the aggregate principal amount of Notes authorized for issuance by the Company pursuant to
one or more Authentication Orders, except as provided in Section 2.07 hereof.

     In authenticating the Notes, the Trustee shall receive, and subject to Section 7.01 hereof
will be fully protected in relying upon, an Opinion of Counsel stating that this Indenture and such
Notes and Note Guarantees, when authenticated and delivered by the Trustee and issued by the
Company and the Guarantors in the manner and subject to any conditions specified in such Opinion of
Counsel, will constitute valid and binding obligations of the Company and the Guarantors
enforceable in accordance with their terms (except as the enforceability thereof may be limited by
bankruptcy, insolvency, reorganization, moratorium, or other laws relating to or affecting
creditors’ rights and by general principles of equity, and subject to customary assumptions).

     The Trustee may appoint an authenticating agent acceptable to the Company to authenticate
Notes. Unless otherwise provided in the appointment, an authenticating agent may authenticate
Notes whenever the Trustee may do so. Each reference in this Indenture to authentication by the
Trustee includes authentication by such agent. An authenticating agent has the same rights as an
Agent to deal with Holders of Notes or an Affiliate of the Company.

Section 2.03 Registrar and Paying Agent.

     The Company will maintain or cause to be maintained an office or agency where Notes may be
presented for registration of transfer or for exchange (“Registrar”) and an office or agency where
Notes may be presented for payment (“Paying Agent”). The Registrar will keep a register of the
Notes and of their transfer and exchange. The Company may appoint one or more co-registrars and
one or more additional paying agents. The term “Registrar” includes any co-registrar and the term
“Paying Agent” includes any additional paying agent. The Company may change any Paying Agent or
Registrar without notice to any Holder. The Company will notify the Trustee in writing of the name
and address of any Agent not a party to this Indenture. If the Company fails to appoint or
maintain another entity as Registrar or Paying Agent, the Trustee shall act as such. Parent or any
of its Subsidiaries may act as Paying Agent or Registrar.

     The Company initially appoints the Depository Trust Company (“DTC”) to act as Depositary with
respect to the Global Notes.

     The Company initially appoints the Trustee to act as the Registrar and Paying Agent and to act
as Custodian with respect to the Global Notes.

Section 2.04 Paying Agent to Hold Money in Trust.

     The Company will require each Paying Agent other than the Trustee to agree in writing that the
Paying Agent will hold in trust for the benefit of Holders of Notes or the Trustee all money held
by the

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Paying Agent for the payment of principal, premium or Special Interest, if any, or interest on
the Notes (whether such assets have been distributed to it by the Company or any other obligor on
the Notes), and will notify the Trustee of any default by the Company in making any such payment.
While any such default continues, the Trustee may require a Paying Agent to pay all money held by
it to the Trustee. The Company at any time may require a Paying Agent to pay all money held by it
to the Trustee. Upon payment over to the Trustee, the Paying Agent (if other than Parent or a
Subsidiary) will have no further liability for the money. If Parent or a Subsidiary acts as Paying
Agent, it will segregate and hold in a separate trust fund for the benefit of the Holders of Notes
all money held by it as Paying Agent. Upon any bankruptcy or reorganization proceedings relating
to the Company, the Trustee will serve as Paying Agent for the Notes.

Section 2.05 Holder Lists.

     The Trustee will preserve in as current a form as is reasonably practicable the most recent
list available to it of the names and addresses of all Holders of Notes. If the Trustee is not the
Registrar, the Company will furnish to the Trustee at least two Business Days before each interest
payment date and at such other times as the Trustee may request in writing, a list in such form and
as of such date as the Trustee may reasonably require of the names and addresses of the Holders of
Notes.

Section 2.06 Transfer and Exchange.

     (a) Transfer and Exchange of Global Notes. A Global Note may not be transferred except as a
whole by the Depositary to a nominee of the Depositary, by a nominee of the Depositary to the
Depositary or to another nominee of the Depositary, or by the Depositary or any such nominee to a
successor Depositary or a nominee of such successor Depositary. All Global Notes may be exchanged
by the Company for Definitive Notes if:

     (1) the Company delivers to the Trustee notice from the Depositary that it is unwilling
or unable to continue to act as Depositary or that it is no longer a clearing agency
registered under the Exchange Act and, in either case, a successor Depositary is not
appointed by the Company within 120 days after the date of such notice from the Depositary;

     (2) the Company in its sole discretion determines that the Global Notes (in whole but
not in part) should be exchanged for Definitive Notes and delivers a written notice to such
effect to the Trustee; or

     (3) there has occurred and is continuing a Default or Event of Default with respect to
the Notes.

     Upon the occurrence of any of the preceding events in clauses (1), (2) or (3) of this Section
2.06(a), Definitive Notes may be issued in such names as the Depositary shall instruct the Trustee.
Global Notes also may be exchanged or replaced, in whole or in part, as provided in Sections 2.07
and 2.10 hereof. Every Note authenticated and delivered in exchange for, or in lieu of, a Global
Note or any portion thereof, pursuant to this Section 2.06 or Section 2.07 or 2.10 hereof, shall be
authenticated and delivered in the form of, and shall be, a Global Note.

     (b) Transfer and Exchange of Beneficial Interests in the Global Notes. The transfer and
exchange of beneficial interests in the Global Notes will be effected through the Depositary, in
accordance with the provisions of this Indenture and the Applicable Procedures. Beneficial
interests in the Restricted Global Notes will be subject to restrictions on transfer comparable to
those set forth herein to the extent required by the Securities Act. Transfers of beneficial
interests in the Global Notes also will

39

 

require compliance with either subparagraph (1) or (2) below, as applicable, as well as one or
more of the other following subparagraphs, as applicable:

     (1) Transfer of Beneficial Interests in the Same Global Note. Beneficial interests in
any Restricted Global Note may be transferred to Persons who take delivery thereof in the
form of a beneficial interest in the same Restricted Global Note in accordance with the
transfer restrictions set forth in the Private Placement Legend; provided, however, that
prior to the expiration of the Restricted Period, transfers of beneficial interests in the
Regulation S Global Note may not be made to a U.S. Person or for the account or benefit of a
U.S. Person (other than an Initial Purchaser). Beneficial interests in any Unrestricted
Global Note may be transferred to Persons who take delivery thereof in the form of a
beneficial interest in an Unrestricted Global Note.

     (2) All Other Transfers and Exchanges of Beneficial Interests in Global Notes. In
connection with all transfers and exchanges of beneficial interests that are not subject to
Section 2.06(b)(1) above, the transferor of such beneficial interest must deliver to the
Registrar either:

     (A) both:

     (i) a written order from a Participant or an Indirect Participant given
to the Depositary in accordance with the Applicable Procedures directing the
Depositary to credit or cause to be credited a beneficial interest in
another Global Note in an amount equal to the beneficial interest to be
transferred or exchanged; and

     (ii) instructions given in accordance with the Applicable Procedures
containing information regarding the Participant account to be credited with
such increase; or

     (B) upon the occurrence of any of the events in clauses (1), (2) or (3) of
Section 2.06(a) hereof, both:

     (i) a written order from a Participant or an Indirect Participant given
to the Depositary in accordance with the Applicable Procedures directing the
Depositary to cause to be issued a Definitive Note in an amount equal to the
beneficial interest to be transferred or exchanged; and

     (ii) instructions given by the Depositary to the Registrar containing
information regarding the Person in whose name such Definitive Note shall be
registered to effect the transfer or exchange referred to in clause (1)
above;

     Upon satisfaction of all of the requirements for transfer or exchange of beneficial
interests in Global Notes contained in this Indenture and the Notes or otherwise applicable
under the Securities Act, the Trustee shall adjust the principal amount of the relevant
Global Note(s) pursuant to Section 2.06(g) hereof.

     (3) Transfer of Beneficial Interests to Another Restricted Global Note. A beneficial
interest in any Restricted Global Note may be transferred to a Person who takes delivery
thereof in the form of a beneficial interest in another Restricted Global Note if the
transfer complies with the requirements of Section 2.06(b)(2) above and the Registrar
receives the following:

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     (A) if the transferee will take delivery in the form of a beneficial interest
in the 144A Global Note, then the transferor must deliver a certificate in the form
of Exhibit B hereto, including the certifications in item (1) thereof; and

     (B) if the transferee will take delivery in the form of a beneficial interest
in the Regulation S Global Note, then the transferor must deliver a certificate in
the form of Exhibit B hereto, including the certifications in item (2) thereof; and

     (4) Transfer and Exchange of Beneficial Interests in a Restricted Global Note for
Beneficial Interests in an Unrestricted Global Note. A beneficial interest in any
Restricted Global Note may be exchanged by any holder thereof for a beneficial interest in
an Unrestricted Global Note or transferred to a Person who takes delivery thereof in the
form of a beneficial interest in an Unrestricted Global Note if the exchange or transfer
complies with the requirements of Section 2.06(b)(2) above and:

     (A) the Registrar receives the following:

     (i) if the holder of such beneficial interest in a Restricted Global
Note proposes to exchange such beneficial interest for a beneficial interest
in an Unrestricted Global Note, a certificate from such holder in the form
of Exhibit C hereto, including the certifications in item (1)(a) thereof; or

     (ii) if the holder of such beneficial interest in a Restricted Global
Note proposes to transfer such beneficial interest to a Person who shall
take delivery thereof in the form of a beneficial interest in an
Unrestricted Global Note, a certificate from such holder in the form of
Exhibit B hereto, including the certifications in item (4) thereof;

and, in each such case set forth in this subparagraph (A), if the Registrar so
requests or if the Applicable Procedures so require, an Opinion of Counsel in form
reasonably acceptable to the Registrar to the effect that such exchange or transfer
is in compliance with the Securities Act and that the restrictions on transfer
contained herein and in the Private Placement Legend are no longer required in order
to maintain compliance with the Securities Act.

     If any such transfer is effected pursuant to subparagraph (A) above at a time when an
Unrestricted Global Note has not yet been issued, the Company shall issue and, upon receipt of an
Authentication Order in accordance with Section 2.02 hereof, the Trustee shall authenticate one or
more Unrestricted Global Notes in an aggregate principal amount equal to the aggregate principal
amount of beneficial interests transferred pursuant to subparagraph (A) above.

     Beneficial interests in an Unrestricted Global Note cannot be exchanged for, or transferred to
Persons who take delivery thereof in the form of, a beneficial interest in a Restricted Global
Note.

     (c) Transfer or Exchange of Beneficial Interests for Definitive Notes.

     (1) Beneficial Interests in Restricted Global Notes to Restricted Definitive Notes.
Upon the occurrence of any of the events in clauses (1), (2) or (3) of Section 2.06(a)
hereof, then, upon receipt by the Registrar of the following documentation:

41

 

     (A) if the holder of such beneficial interest in a Restricted Global Note
proposes to exchange such beneficial interest for a Restricted Definitive Note, a
certificate from such holder in the form of Exhibit C hereto, including the
certifications in item (2)(a) thereof;

     (B) if such beneficial interest is being transferred to a QIB in accordance
with Rule 144A, a certificate to the effect set forth in Exhibit B hereto, including
the certifications in item (1) thereof;

     (C) if such beneficial interest is being transferred to a Non-U.S. Person in an
offshore transaction in accordance with Rule 903 or Rule 904, a certificate to the
effect set forth in Exhibit B hereto, including the certifications in item (2)
thereof;

     (D) if such beneficial interest is being transferred pursuant to an exemption
from the registration requirements of the Securities Act in accordance with Rule
144, a certificate to the effect set forth in Exhibit B hereto, including the
certifications in item (3)(a) thereof;

     (E) if such beneficial interest is being transferred to an Institutional
Accredited Investor in reliance on an exemption from the registration requirements
of the Securities Act other than those listed in subparagraphs (B) through (D)
above, a certificate to the effect set forth in Exhibit B hereto, including the
certifications, certificates and Opinion of Counsel required by item (3) thereof, if
applicable; or

     (F) if such beneficial interest is being transferred to the Company or any of
its Subsidiaries, a certificate to the effect set forth in Exhibit B hereto,
including the certifications in item (3)(b) thereof,

the Trustee shall cause the aggregate principal amount of the applicable Global Note to be
reduced accordingly pursuant to Section 2.06(g) hereof, and the Company shall execute and
the Trustee shall authenticate and deliver to the Person designated in the instructions a
Definitive Note in the appropriate principal amount. Any Definitive Note issued in exchange
for a beneficial interest in a Restricted Global Note pursuant to this Section 2.06(c) shall
be registered in such name or names and in such authorized denomination or denominations as
the holder of such beneficial interest shall instruct the Registrar through instructions
from the Depositary and the Participant or Indirect Participant. The Trustee shall deliver
such Definitive Notes to the Persons in whose names such Notes are so registered. Any
Definitive Note issued in exchange for a beneficial interest in a Restricted Global Note
pursuant to this Section 2.06(c)(1) shall bear the Private Placement Legend and shall be
subject to all restrictions on transfer contained therein.

     (2) Beneficial Interests in Restricted Global Notes to Unrestricted Definitive Notes.
Upon the occurrence of any of the events in clauses (1), (2) or (3) of Section 2.06(a)
hereof, holder of a beneficial interest in a Restricted Global Note may exchange such
beneficial interest for an Unrestricted Definitive Note or may transfer such beneficial
interest to a Person who takes delivery thereof in the form of an Unrestricted Definitive
Note only if:

     (A) the Registrar receives the following:

     (i) if the holder of such beneficial interest in a Restricted Global
Note proposes to exchange such beneficial interest for an Unrestricted
Definitive

42

 

Note, a certificate from such holder in the form of Exhibit C hereto,
including the certifications in item (1)(b) thereof; or

     (ii) if the holder of such beneficial interest in a Restricted Global
Note proposes to transfer such beneficial interest to a Person who shall
take delivery thereof in the form of an Unrestricted Definitive Note, a
certificate from such holder in the form of Exhibit B hereto, including the
certifications in item (4) thereof;

and, in each such case set forth in this subparagraph (A), if the Registrar so
requests or if the Applicable Procedures so require, an Opinion of Counsel in form
reasonably acceptable to the Registrar to the effect that such exchange or transfer
is in compliance with the Securities Act and that the restrictions on transfer
contained herein and in the Private Placement Legend are no longer required in order
to maintain compliance with the Securities Act.

     (3) Beneficial Interests in Unrestricted Global Notes to Unrestricted Definitive Notes.
Upon the occurrence of any of the events in clauses (1), (2) or (3) of Section 2.06(a)
hereof, if any holder of a beneficial interest in an Unrestricted Global Note proposes to
exchange such beneficial interest for a Definitive Note or to transfer such beneficial
interest to a Person who takes delivery thereof in the form of a Definitive Note, then, upon
satisfaction of the conditions set forth in Section 2.06(b)(2) hereof, the Trustee will
cause the aggregate principal amount of the applicable Global Note to be reduced accordingly
pursuant to Section 2.06(g) hereof, and the Company will execute and the Trustee will
authenticate and deliver to the Person designated in the instructions a Definitive Note in
the appropriate principal amount. Any Definitive Note issued in exchange for a beneficial
interest pursuant to this Section 2.06(c)(3) will be registered in such name or names and in
such authorized denomination or denominations as the holder of such beneficial interest
requests through instructions to the Registrar from or through the Depositary and the
Participant or Indirect Participant. The Trustee will deliver such Definitive Notes to the
Persons in whose names such Notes are so registered. Any Definitive Note issued in exchange
for a beneficial interest pursuant to this Section 2.06(c)(3) will not bear the Private
Placement Legend.

     (d) Transfer and Exchange of Definitive Notes for Beneficial Interests.

     (1) Restricted Definitive Notes to Beneficial Interests in Restricted Global Notes. If
any Holder of a Restricted Definitive Note proposes to exchange such Note for a beneficial
interest in a Restricted Global Note or to transfer such Restricted Definitive Notes to a
Person who takes delivery thereof in the form of a beneficial interest in a Restricted
Global Note, then, upon receipt by the Registrar of the following documentation:

     (A) if the Holder of such Restricted Definitive Note proposes to exchange such
Note for a beneficial interest in a Restricted Global Note, a certificate from such
Holder in the form of Exhibit C hereto, including the certifications in item (2)(b)
thereof;

     (B) if such Restricted Definitive Note is being transferred to a QIB in
accordance with Rule 144A, a certificate to the effect set forth in Exhibit B
hereto, including the certifications in item (1) thereof;

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     (C) if such Restricted Definitive Note is being transferred to a Non-U.S.
Person in an offshore transaction in accordance with Rule 903 or Rule 904, a
certificate to the effect set forth in Exhibit B hereto, including the
certifications in item (2) thereof;

     (D) if such Restricted Definitive Note is being transferred pursuant to an
exemption from the registration requirements of the Securities Act in accordance
with Rule 144, a certificate to the effect set forth in Exhibit B hereto, including
the certifications in item (3)(a) thereof;

     (E) if such Restricted Definitive Note is being transferred to an Institutional
Accredited Investor in reliance on an exemption from the registration requirements
of the Securities Act other than those listed in subparagraphs (B) through (D)
above, a certificate to the effect set forth in Exhibit B hereto, including the
certifications, certificates and Opinion of Counsel required by item (3) thereof, if
applicable; or

     (F) if such Restricted Definitive Note is being transferred to the Company or
any of its Subsidiaries, a certificate to the effect set forth in Exhibit B hereto,
including the certifications in item (3)(b) thereof,

the Trustee will cancel the Restricted Definitive Note, increase or cause to be increased
the aggregate principal amount of, in the case of clause (A) above, the appropriate
Restricted Global Note, in the case of clause (B) above, the 144A Global Note and in the
case of clause (C) above, the Regulation S Global Note.

     (2) Restricted Definitive Notes to Beneficial Interests in Unrestricted Global Notes.
A Holder of a Restricted Definitive Note may exchange such Note for a beneficial interest in
an Unrestricted Global Note or transfer such Restricted Definitive Note to a Person who
takes delivery thereof in the form of a beneficial interest in an Unrestricted Global Note
only if:

     (A) the Registrar receives the following:

     (i) if the Holder of such Definitive Notes proposes to exchange such
Notes for a beneficial interest in the Unrestricted Global Note, a
certificate from such Holder in the form of Exhibit C hereto, including the
certifications in item (1)(c) thereof; or

     (ii) if the Holder of such Definitive Notes proposes to transfer such
Notes to a Person who shall take delivery thereof in the form of a
beneficial interest in the Unrestricted Global Note, a certificate from such
Holder in the form of Exhibit B hereto, including the certifications in item
(4) thereof;

and, in each such case set forth in this subparagraph (A), if the Registrar so
requests or if the Applicable Procedures so require, an Opinion of Counsel in form
reasonably acceptable to the Registrar to the effect that such exchange or transfer
is in compliance with the Securities Act and that the restrictions on transfer
contained herein and in the Private Placement Legend are no longer required in order
to maintain compliance with the Securities Act.

     Upon satisfaction of the conditions of any of the subparagraphs in this Section
2.06(d)(2), the Trustee will cancel the Definitive Notes and increase or cause to be
increased the aggregate principal amount of the Unrestricted Global Note.

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     (3) Unrestricted Definitive Notes to Beneficial Interests in Unrestricted Global Notes.
A Holder of an Unrestricted Definitive Note may exchange such Note for a beneficial
interest in an Unrestricted Global Note or transfer such Definitive Notes to a Person who
takes delivery thereof in the form of a beneficial interest in an Unrestricted Global Note
at any time. Upon receipt of a request for such an exchange or transfer, the Trustee will
cancel the applicable Unrestricted Definitive Note and increase or cause to be increased the
aggregate principal amount of one of the Unrestricted Global Notes.

     If any such exchange or transfer from a Definitive Note to a beneficial interest is
effected pursuant to subparagraphs (2)(A) or (3) above at a time when an Unrestricted Global
Note has not yet been issued, the Company will issue and, upon receipt of an Authentication
Order in accordance with Section 2.02 hereof, the Trustee will authenticate one or more
Unrestricted Global Notes in an aggregate principal amount equal to the principal amount of
Definitive Notes so transferred.

     (e) Transfer and Exchange of Definitive Notes for Definitive Notes. Upon the occurrence of
any of the events in clauses (1), (2) or (3) of Section 2.06(a) hereof, then, upon request by a
Holder of Definitive Notes and such Holder’s compliance with the provisions of this Section
2.06(e), the Registrar will register the transfer or exchange of Definitive Notes. Prior to such
registration of transfer or exchange, the requesting Holder must present or surrender to the
Registrar the Definitive Notes duly endorsed or accompanied by a written instruction of transfer in
form satisfactory to the Registrar duly executed by such Holder or by its attorney, duly authorized
in writing. In addition, the requesting Holder must provide any additional certifications,
documents and information, as applicable, required pursuant to the following provisions of this
Section 2.06(e).

     (1) Restricted Definitive Notes to Restricted Definitive Notes. Any Restricted
Definitive Note may be transferred to and registered in the name of Persons who take
delivery thereof in the form of a Restricted Definitive Note if the Registrar receives the
following:

     (A) if the transfer will be made pursuant to Rule 144A, then the transferor
must deliver a certificate in the form of Exhibit B hereto, including the
certifications in item (1) thereof;

     (B) if the transfer will be made pursuant to Rule 903 or Rule 904, then the
transferor must deliver a certificate in the form of Exhibit B hereto, including the
certifications in item (2) thereof; and

     (C) if the transfer will be made pursuant to any other exemption from the
registration requirements of the Securities Act, then the transferor must deliver a
certificate in the form of Exhibit B hereto, including the certifications,
certificates and Opinion of Counsel required by item (3) thereof, if applicable.

     (2) Restricted Definitive Notes to Unrestricted Definitive Notes. Any Restricted
Definitive Note may be exchanged by the Holder thereof for an Unrestricted Definitive Note
or transferred to a Person or Persons who take delivery thereof in the form of an
Unrestricted Definitive Note if:

     (A) the Registrar receives the following:

     (i) if the Holder of such Restricted Definitive Notes proposes to
exchange such Notes for an Unrestricted Definitive Note, a certificate from
such

45

 

Holder in the form of Exhibit C hereto, including the certifications in
item (1)(d) thereof; or

     (ii) if the Holder of such Restricted Definitive Notes proposes to
transfer such Notes to a Person who shall take delivery thereof in the form
of an Unrestricted Definitive Note, a certificate from such Holder in the
form of Exhibit B hereto, including the certifications in item (4) thereof;

and, in each such case set forth in this subparagraph (A), if the Registrar so
requests, an Opinion of Counsel in form reasonably acceptable to the Registrar to
the effect that such exchange or transfer is in compliance with the Securities Act
and that the restrictions on transfer contained herein and in the Private Placement
Legend are no longer required in order to maintain compliance with the Securities
Act.

     (3) Unrestricted Definitive Notes to Unrestricted Definitive Notes. A Holder of
Unrestricted Definitive Notes may transfer such Notes to a Person who takes delivery thereof
in the form of an Unrestricted Definitive Note. Upon receipt of a request to register such
a transfer, the Registrar shall register the Unrestricted Definitive Notes pursuant to the
instructions from the Holder thereof.

     (f) Legends. The following legends will appear on the face of all Global Notes and Definitive
Notes issued under this Indenture unless specifically stated otherwise in the applicable provisions
of this Indenture.

     (1) Private Placement Legend.

     (A) Each Global Note and each Definitive Note (and all Notes issued in exchange
therefor or substitution thereof) shall bear the legend in substantially the
following form:

“THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THIS SECURITY
NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED,
ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION
IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION. THE HOLDER OF THIS SECURITY, BY ITS
ACCEPTANCE HEREOF, AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT HAS
PURCHASED SECURITIES, TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE
“RESALE RESTRICTION TERMINATION DATE”) THAT IS [IN THE CASE OF RULE 144A NOTES: SIX MONTHS] [IN THE
CASE OF REGULATION S NOTES: 40 DAYS] AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST
DATE ON WHICH THE ISSUER OR ANY AFFILIATE OF THE ISSUER WAS THE OWNER OF THIS SECURITY (OR ANY
PREDECESSOR OF SUCH SECURITY), ONLY(A) TO THE ISSUER, (B) FOR SO LONG AS THE SECURITIES ARE
ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT, TO A PERSON IT REASONABLY
BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT
PURCHASES FOR ITS ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS
GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (C) PURSUANT TO OFFERS AND SALES
THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT

46

 

OR (D) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT, SUBJECT TO THE ISSUER’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER
PURSUANT TO CLAUSES (C) OR (D) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION
AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM. THIS LEGEND WILL BE REMOVED UPON THE REQUEST
OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.”

     (2) Global Note Legend. Each Global Note will bear a legend in substantially the
following form:

“THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE) OR
ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO
ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (1) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS
MAY BE REQUIRED PURSUANT TO SECTION 2.06 OF THE INDENTURE, (2) THIS GLOBAL NOTE MAY BE EXCHANGED IN
WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06(a) OF THE INDENTURE, (3) THIS GLOBAL NOTE MAY BE
DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.11 OF THE INDENTURE AND (4) THIS
GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE
COMPANY.

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY
NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A
NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE
DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION
OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT
IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.”

     (g) Cancellation and/or Adjustment of Global Notes. At such time as all beneficial interests
in a particular Global Note have been exchanged for Definitive Notes or a particular Global Note
has been redeemed, repurchased or canceled in whole and not in part, each such Global Note will be
returned to or retained and canceled by the Trustee in accordance with Section 2.11 hereof. At any
time prior to such cancellation, if any beneficial interest in a Global Note is exchanged for or
transferred to a Person who will take delivery thereof in the form of a beneficial interest in
another Global Note or for Definitive Notes, the principal amount of Notes represented by such
Global Note will be reduced accordingly and an endorsement will be made on the “Schedule of
Exchanges of Interests in the Global Note” attached to such Global Note by the Trustee or by the
Depositary at the direction of the Trustee to reflect such reduction; and if the beneficial
interest is being exchanged for or transferred to a Person who will take delivery thereof in the
form of a beneficial interest in another Global Note, such other Global Note will be increased
accordingly and an endorsement will be made on such Global Note by the Trustee or by the Depositary
at the direction of the Trustee to reflect such increase.

47

 

     (h) General Provisions Relating to Transfers and Exchanges.

     (1) To permit registrations of transfers and exchanges, the Company will execute and
the Trustee will authenticate Global Notes and Definitive Notes upon receipt of an
Authentication Order in accordance with Section 2.02 hereof or at the Registrar’s request.

     (2) No service charge will be made to a Holder of a beneficial interest in a Global
Note or to a Holder of a Definitive Note for any registration of transfer or exchange, but
the Company may require payment of a sum sufficient to cover any transfer tax or similar
governmental charge payable in connection therewith (other than any such transfer taxes or
similar governmental charge or notation payable upon exchange, transfer or notation pursuant
to Sections 2.10, 3.06, 3.10, 4.10, 4.15 and 9.04 hereof).

     (3) The Registrar will not be required to register the transfer of or exchange of any
Note selected for redemption in whole or in part, except the unredeemed portion of any Note
being redeemed in part.

     (4) All Global Notes and Definitive Notes issued upon any registration of transfer or
exchange of Global Notes or Definitive Notes will be the valid obligations of the Company
and the Guarantors, evidencing the same debt, and entitled to the same benefits under this
Indenture, as the Global Notes or Definitive Notes surrendered upon such registration of
transfer or exchange.

     (5) Neither the Registrar nor the Company will be required:

     (A) to issue, to register the transfer of or to exchange any Notes during a
period beginning at the opening of business 15 days before the day of any selection
of Notes for redemption under Section 3.02 hereof and ending at the close of
business on the day of selection;

     (B) to register the transfer of or to exchange any Note selected for redemption
in whole or in part, except the unredeemed portion of any Note being redeemed in
part; or

     (C) to register the transfer of or to exchange a Note between a record date and
the next succeeding interest payment date.

     (6) Prior to due presentment for the registration of a transfer of any Note, the
Trustee, any Agent and the Company may deem and treat the Person in whose name any Note is
registered as the absolute owner of such Note for the purpose of receiving payment of
principal of and interest on such Notes and for all other purposes, and none of the Trustee,
any Agent or the Company shall be affected by notice to the contrary.

     (7) The Trustee will authenticate Global Notes and Definitive Notes in accordance with
the provisions of Section 2.02 hereof.

     (8) All certifications, certificates and Opinions of Counsel required to be submitted
to the Registrar pursuant to this Section 2.06 to effect a registration of transfer or
exchange may be submitted by facsimile.

48

 

Section 2.07 Replacement Notes.

     If any mutilated Note is surrendered to the Trustee or the Company and the Trustee receives
evidence to its satisfaction of the destruction, loss or theft of any Note, the Company will issue
and the Trustee, upon receipt of an Authentication Order, will authenticate a replacement Note if
the Trustee’s requirements are met. If required by the Trustee or the Company, an indemnity bond
must be supplied by the Holder that is sufficient in the judgment of the Trustee and the Company to
protect the Company, the Trustee, any Agent and any authenticating agent from any loss that any of
them may suffer if a Note is replaced. The Company may charge for its expenses in replacing a
Note, including reasonable fees and expenses of the Trustee.

     Every replacement Note is an obligation of the Company and will be entitled to all of the
benefits of this Indenture equally and proportionately with all other Notes duly issued hereunder.

Section 2.08 Outstanding Notes.

     The Notes outstanding at any time are all the Notes authenticated by the Trustee except for
those canceled by it, those delivered to it for cancellation, those reductions in the interest in a
Global Note effected by the Trustee in accordance with the provisions hereof, and those described
in this Section 2.08 as not outstanding. Except as set forth in Section 2.09 hereof, a Note does
not cease to be outstanding because the Company or an Affiliate of the Company holds the Note;
however, Notes held by Parent or a Subsidiary of Parent shall not be deemed to be outstanding for
purposes of Section 3.07(b) hereof.

     If a Note is replaced pursuant to Section 2.07 hereof, it ceases to be outstanding unless the
Trustee receives proof satisfactory to it that the replaced Note is held by a protected purchaser.

     If the principal amount of any Note is considered paid under Section 4.01 hereof, it ceases to
be outstanding and interest on it ceases to accrue.

     If the Paying Agent (other than Parent, a Subsidiary or an Affiliate of any thereof) holds, on
a redemption date or maturity date, money sufficient to pay Notes payable on that date, then on and
after that date such Notes will be deemed to be no longer outstanding and will cease to accrue
interest.

Section 2.09 Treasury Notes.

     In determining whether the Holders of the required principal amount of Notes have concurred in
any direction, waiver or consent, Notes owned by the Company, any Guarantor or any Affiliate of the
Company or any Guarantor will be disregarded, except that for the purposes of determining whether
the Trustee will be protected in relying on any such direction, waiver or consent, only Notes that
the Trustee actually knows are so owned will be so disregarded.

Section 2.10 Temporary Notes.

     Until certificates representing Notes are ready for delivery, the Company may prepare and the
Trustee will authenticate temporary Notes. Temporary Notes will be substantially in the form of
certificated Notes but may have variations that the Company considers appropriate for temporary
Notes and as may be reasonably acceptable to the Trustee. Without unreasonable delay, the Company
will prepare and the Trustee will authenticate definitive Notes in exchange for temporary Notes.

     Until such exchange, Holders of temporary Notes will be entitled to all of the rights,
benefits and privileges of this Indenture.

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Section 2.11 Cancellation.

     The Company at any time may deliver Notes to the Trustee for cancellation. The Registrar and
Paying Agent will forward to the Trustee any Notes surrendered to them for registration of
transfer, exchange or payment. The Trustee, or at the direction of the Trustee, the Registrar or
the Paying Agent, and no one else, will cancel all Notes surrendered for registration of transfer,
exchange, payment, replacement or cancellation and at the written direction of the Company will
dispose of canceled Notes in accordance with its then existing procedures therefor (subject to the
record retention requirement of the Exchange Act). Certification of such disposal of all canceled
Notes will be delivered to the Company upon request. The Company may not issue new Notes to
replace Notes that it has paid or that have been delivered to the Trustee for cancellation.

Section 2.12 Defaulted Interest.

     If the Company defaults in a payment of interest on the Notes, it will pay the defaulted
interest in any lawful manner plus, to the extent lawful, interest payable on the defaulted
interest, to the Persons who are Holders of Notes on a subsequent special record date, in each case
at the rate provided in the Notes and in Section 4.01 hereof. The Company will notify the Trustee
in writing of the amount of defaulted interest proposed to be paid on each Note and the date of the
proposed payment. The Company will fix or cause to be fixed each such special record date and
payment date; provided that no such special record date may be less than 10 days prior to the
related payment date for such defaulted interest. At least 15 days before the special record date,
the Company (or, upon the written request of the Company, the Trustee in the name and at the
expense of the Company) will mail or cause to be mailed to Holders of Notes a notice that states
the special record date, the related payment date and the amount of such interest to be paid.

Section 2.13 CUSIP Numbers.

     The Company in issuing the Notes may use “CUSIP” numbers (if then generally in use), and, if
so, the Trustee shall use “CUSIP” numbers in notice issued under this Indenture, including but not
limited to notices of redemption, as a convenience to Holders; provided that any such notice may
state that no representation is made as to the correctness of such numbers either as printed on the
Notes or as contained in any notice of redemption or other notice and that reliance may be placed
only on the other elements of identification printed on the Notes, and any such redemption or
effect of other such notice shall not be affected by any defect in or omission of such numbers.

Section 2.14 Issuance of Additional Notes.

     After the date of this Indenture, the Company shall be entitled to issue Additional Notes
under this Indenture. All the Notes issued under this Indenture shall be treated as a single class
for all purposes of this Indenture including waivers, amendments, redemptions and offers to
purchase.

     With respect to any Additional Notes, the Company shall set forth in a resolution of the Board
of Directors and an Officers’ Certificate, a copy of each which shall be delivered to the Trustee,
the following information:

     (a) the aggregate principal amount of such Additional Notes to be authenticated and
delivered pursuant to this Indenture; and

     (b) the issue price, the issue date and the CUSIP number of such Additional Notes;
provided, however, that no Additional Notes may be issued at a price that would cause such
Additional Notes to

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have “original issue discount” within the meaning of Section 1273 of the Internal Revenue Code
of 1986, as amended.

ARTICLE 3

REDEMPTION AND PREPAYMENT

Section 3.01 Notices to Trustee.

     If the Company elects to redeem Notes pursuant to the optional redemption provisions of
Section 3.07 hereof, it must furnish to the Trustee, at least 30 days but not more than 60 days
before a redemption date, an Officers’ Certificate setting forth:

     (1) the clause of this Indenture pursuant to which the redemption shall occur;

     (2) the redemption date;

     (3) the principal amount of Notes to be redeemed; and

     (4) the redemption price.

     If the redemption price is not known at the time such notice is to be given, the actual
redemption price, calculated as described in the terms of the Notes to be redeemed, will be set
forth in an Officers’ Certificate of the Company delivered to the Trustee no later than two
Business Days prior to the redemption date.

Section 3.02 Selection of Notes to Be Redeemed or Purchased.

     If less than all of the Notes are to be redeemed or purchased in an offer to purchase at any
time, and the Notes are not Global Notes, the Trustee will select Notes for redemption or purchase
on a pro rata basis (or, in the case of Global Notes, the Trustee will select Notes for redemption
based on DTC’s method that most nearly approximates a pro rata selection), unless otherwise
required by law or applicable stock exchange or depositary requirements.

     In the event of partial redemption or purchase by lot, the particular Notes to be redeemed or
purchased will be selected, unless otherwise provided herein, not less than 30 nor more than 60
days prior to the redemption or purchase date by the Trustee from the outstanding Notes not
previously called for redemption or purchase.

     The Trustee will promptly notify the Company in writing of the Notes selected for redemption
or purchase and, in the case of any Note selected for partial redemption or purchase, the principal
amount thereof to be redeemed or purchased. Notes and portions of Notes selected will be in
amounts of $2,000 or integral multiples of $1,000 in excess thereof; except that if all of the
Notes of a Holder are to be redeemed or purchased, the entire outstanding amount of Notes held by
such Holder, even if not $2,000 or a multiple of $1,000 in excess thereof, shall be redeemed or
purchased. Except as provided in the preceding sentence, provisions of this Indenture that apply
to Notes called for redemption or purchase also apply to portions of Notes called for redemption or
purchase.

Section 3.03 Notice of Redemption.

     Subject to the provisions of Section 3.10 hereof, at least 30 days but not more than 60 days
before a redemption date, the Company will mail or cause to be mailed, by first class mail, a
notice of

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redemption to each Holder whose Notes are to be redeemed at its registered address, except
that redemption notices may be mailed more than 60 days prior to a redemption date if the notice is
issued in connection with a defeasance of the Notes or a satisfaction and discharge of this
Indenture pursuant to Articles 8 or 11 hereof.

     The notice will identify the Notes to be redeemed and will state:

     (1) the redemption date;

     (2) the redemption price;

     (3) if any Note is being redeemed in part, the portion of the principal amount of such
Note to be redeemed and that, after the redemption date upon surrender of such Note, a new
Note or Notes in principal amount equal to the unredeemed portion will be issued upon
cancellation of the original Note;

     (4) the name and address of the Paying Agent;

     (5) that Notes called for redemption must be surrendered to the Paying Agent to collect
the redemption price;

     (6) that, unless the Company defaults in making such redemption payment, interest on
Notes called for redemption ceases to accrue on and after the redemption date;

     (7) the paragraph of the Notes and/or Section of this Indenture pursuant to which the
Notes called for redemption are being redeemed; and

     (8) that no representation is made as to the correctness or accuracy of the CUSIP
number, if any, listed in such notice or printed on the Notes.

     At the Company’s request, the Trustee will give the notice of redemption in the Company’s name
and at its expense; provided, however, that the Company has delivered to the Trustee, at least 45
days prior to the redemption date, an Officers’ Certificate requesting that the Trustee give such
notice and setting forth the information to be stated in such notice as provided in the preceding
paragraph.

Section 3.04 Effect of Notice of Redemption.

     Once notice of redemption is mailed in accordance with Section 3.03 hereof, Notes called for
redemption become irrevocably due and payable on the redemption date at the redemption price. A
notice of redemption may not be conditional.

Section 3.05 Deposit of Redemption or Purchase Price.

     On or prior to 11:00 a.m. Eastern Time on the redemption or purchase date, the Company will
deposit with the Trustee or with the Paying Agent money sufficient to pay the redemption or
purchase price of and accrued interest and Special Interest, if any, on all Notes to be redeemed or
purchased on that date. The Trustee or the Paying Agent will promptly return to the Company any
money deposited with the Trustee or the Paying Agent by the Company in excess of the amounts
necessary to pay the redemption or purchase price of, and accrued interest and Special Interest, if
any, on, all Notes to be redeemed or purchased.

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     If the Company complies with the provisions of the preceding paragraph, on and after the
redemption or purchase date, interest will cease to accrue on the Notes or the portions of Notes
called for redemption or purchase. If a Note is redeemed or purchased on or after an interest
record date but on or prior to the related interest payment date, then any accrued and unpaid
interest shall be paid to the Person in whose name such Note was registered at the close of
business on such record date. If any Note called for redemption or purchase is not so paid upon
surrender for redemption or purchase because of the failure of the Company to comply with the
preceding paragraph, interest shall be paid on the unpaid principal, from the redemption or
purchase date until such principal is paid, and to the extent lawful on any interest not paid on
such unpaid principal, in each case at the rate provided in the Notes and in Section 4.01 hereof.

Section 3.06 Notes Redeemed or Purchased in Part.

     Upon surrender of a Note that is redeemed or purchased in part, the Company will issue and,
upon receipt of an Authentication Order, the Trustee will authenticate for the Holder at the
expense of the Company a new Note equal in principal amount to the unredeemed or unpurchased
portion of the Note surrendered.

Section 3.07 Optional Redemption.

     (a) Except as described in this Section 3.07, the Notes will not be redeemable at the
Company’s option prior to February 1, 2012.

     (b) At any time prior to February 1, 2012, the Company may on any one or more occasions redeem
up to 35% of the aggregate principal amount of Notes issued under this Indenture, subject to the
provisions of Section 3.03 hereof, at a redemption price equal to 109.875% of the aggregate
principal amount thereof, plus accrued and unpaid interest and Special Interest, if any, to the
date of redemption (subject to the rights of the Holders of Notes on the relevant record date to
receive interest on the relevant interest payment date), with the net cash proceeds of an Equity
Offering by the Company; provided that:

     (1) at least 50% of the aggregate principal amount of Notes originally issued under
this Indenture (excluding Notes held by Parent and its Subsidiaries) remains outstanding
immediately after the occurrence of such redemption; and

     (2) the redemption occurs within 90 days of the closing of such Equity Offering.

     (c) At any time prior to February 1, 2012, the Company may on any one or more occasions redeem
all or a part of the Notes, subject to the provisions of Section 3.03 hereof, at a redemption price
equal to 100% of the principal amount of Notes redeemed, plus the Applicable Premium as of, and
accrued and unpaid interest and Special Interest, if any, to the date of redemption, subject to the
rights of Holders of Notes on the relevant record date to receive interest due on the relevant
interest payment date.

     (d) At any time prior to February 1, 2013, the Company may redeem a portion of the Notes,
subject to the provisions of Section 3.03 hereof, at a redemption price equal to 103% of the
principal amount thereof, plus accrued and unpaid interest and Special Interest, if any, to the
applicable date of redemption, subject to the rights of Holders of Notes on the relevant record
date to receive interest due on the relevant interest payment date; provided that in no event may
the Company redeem more than 10% of the original aggregate principal amount of the Notes during any
12-month period.

     (e) On or after February 1, 2012, the Company may on any one or more occasions redeem all or a
part of the Notes, subject to the provisions of Section 3.03 hereof, at the redemption prices
(expressed

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as percentages of principal amount on the date of redemption), plus accrued and unpaid
interest and Special Interest, if any, on the Notes redeemed to the applicable date of redemption,
if redeemed during the 12-month period beginning on February 1 of the years set forth below,
subject to the rights of Holders of Notes on the relevant record date to receive interest on the
relevant interest payment date:

	 	 	 	 	 
	Period	 	Percentage
	2012
	 	 	107.406	%
	2013 and thereafter
	 	 	100.000	%

     Unless the Company defaults in the payment of the redemption price, interest will cease to
accrue on the Notes or portions thereof called for redemption on the applicable redemption date.

     (f) Any redemption pursuant to this Section 3.07 shall be made pursuant to the provisions of
Sections 3.01 through 3.06 hereof.

Section 3.08 Mandatory Redemption.

     Except as described in Section 3.09 hereof, the Company is not required to make mandatory
redemption, sinking fund or other scheduled payments of principal with respect to the Notes.
However, the Company may be required to offer to purchase the Notes as described in Sections 4.10
and 4.15 hereof. The Company or its Affiliates may at any time and from time to time purchase
Notes in the open market or otherwise.

Section 3.09 Special Scheduled Maturity Date.

     (a) The Escrow Property, in an aggregate amount of $518,515,625.00, representing the net
proceeds from the issuance and sale of the Notes of $486,295,000.00 together with $32,220,625.00
contributed by the Company, will be held by the Trustee, in its capacity as Escrow Agent, in the
Escrow Account pursuant to the Escrow and Security Agreement. The Escrow Property will be invested
as provided in the Escrow and Security Agreement.

     (b) In addition to any payments required by Sections 4.10 and 4.15 hereof, if the Escrow
Conditions have not been satisfied on or prior to the 120th day following the date of this
Indenture, the Company will repurchase all of the outstanding Notes on or prior to the 135th day
following the date of this Indenture (the “Special Scheduled Maturity Date”), upon not less than 10
days’ notice and pursuant to the terms of the Escrow and Security Agreement, at a price equal to
100% of the aggregate principal amount of the Notes, plus accrued and unpaid interest to, but not
including, the Special Scheduled Maturity Date (the “Special Scheduled Maturity Date Price”).

     (c) Immediately upon receipt by the Paying Agent of the Escrow Property, the Trustee will
notify the Holders of the date fixed for the Special Scheduled Maturity Date pursuant to this
Section 3.09.

     (d) Other than as specifically provided in this Section 3.09 (including, without limitation,
the requirement to provide not less then 10 days’ prior notice), any Special Scheduled Maturity
Date repurchase pursuant to this Section 3.09 will be made pursuant to the provisions of Section
3.01 through 3.05 hereof.

Section 3.10 Offer to Purchase by Application of Excess Proceeds or Sale of Collateral
Consideration.

     In the event that, pursuant to Section 4.10 hereof, the Company is required to commence an
Asset Sale Offer or a Sale of Collateral Offer, it will follow the procedures specified below.

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     The Asset Sale Offer or Sale of Collateral Offer shall be made to all Holders of Notes and, in
the case of an Asset Sale Offer, all holders of Other Offer Notes; provided that, in the case of an
Asset Sale Offer, the percentage of such Excess Proceeds allocated and offered to the Notes in such
Asset Sale Offer is at least equal to the percentage of the aggregate principal amount of all
Priority Lien Debt represented at such time by the Notes.

     The Asset Sale Offer or Sale of Collateral Offer will remain open for a period of at least 20
Business Days following its commencement and not more than 30 Business Days, except to the extent
that a longer period is required by applicable law (the “Offer Period”). No later than five
Business Days after the termination of the Offer Period (the “Purchase Date”), the Company will
apply all Excess Proceeds (in the case of an Asset Sale) or Sale of Collateral Consideration (in
the case of a Sale of Collateral) (in each case, the “Offer Amount”) to the purchase of Notes and
Other Offer Notes (in the case of an Asset Sale) (on a pro rata basis, if applicable) or, if less
than the Offer Amount has been tendered, all Notes and other Indebtedness tendered in response to
the Asset Sale Offer or all Notes tendered in response to the Sale of Collateral Offer. Payment
for any Notes so purchased will be made in the same manner as interest payments are made.

     If the Purchase Date is on or after an interest record date and on or before the related
interest payment date, any accrued and unpaid interest and Special Interest, if any, will be paid
to the Person in whose name a Note is registered at the close of business on such record date, and
no additional interest will be payable to Holders of Notes who tender Notes pursuant to the Asset
Sale Offer or Sale of Collateral Offer, as applicable.

     Upon the commencement of an Asset Sale Offer or Sale of Collateral Offer, the Company will
send, by first class mail, a notice to the Trustee and each of the Holders of Notes, with a copy to
the Trustee. The notice will contain all instructions and materials necessary to enable such
Holders to tender Notes pursuant to the Asset Sale Offer or Sale of Collateral Offer, as
applicable. The notice, which will govern the terms of the Asset Sale Offer or Sale of Collateral
Offer, as applicable, will state:

     (1) that the Asset Sale Offer or Sale of Collateral Offer, as applicable, is being made
pursuant to this Section 3.10 and Section 4.10 hereof and the length of time the Asset Sale
Offer or Sale of Collateral Offer, as applicable, will remain open;

     (2) the Offer Amount, the purchase price and the Purchase Date;

     (3) that any Note not tendered or accepted for payment will continue to accrue interest
and Special Interest, if any;

     (4) that, unless the Company defaults in making such payment, any Note accepted for
payment pursuant to the Asset Sale Offer or Sale of Collateral Offer, as applicable, will
cease to accrue interest and Special Interest, if any, after the Purchase Date;

     (5) that Holders of Notes electing to have a Note purchased pursuant to an Asset Sale
Offer or Sale of Collateral Offer, as applicable, may elect to have Notes purchased in
denominations of $2,000, or an integral multiple of $1,000 in excess thereof only;

     (6) that Holders of Notes electing to have Notes purchased pursuant to any Asset Sale
Offer or Sale of Collateral Offer, as applicable, will be required to surrender the Note,
with the form entitled “Option of Holder to Elect Purchase” attached to the Notes completed,
or transfer by book-entry transfer, to the Company, a Depositary, if appointed by the
Company, or a Paying Agent at the address specified in the notice at least three days before
the Purchase Date;

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     (7) that Holders of Notes will be entitled to withdraw their election if the Company,
the Depositary or the Paying Agent, as the case may be, receives, not later than the
expiration of the Offer Period, a telegram, telex, facsimile transmission or letter setting
forth the name of the Holder, the principal amount of the Note the Holder delivered for
purchase and a statement that such Holder is withdrawing his election to have such Note
purchased;

     (8) that, if the aggregate principal amount of Notes and other pari passu Indebtedness
(in the case of an Asset Sale Offer) surrendered by holders thereof exceeds the Offer
Amount, the Trustee will select the Notes and other pari passu Indebtedness (in the case of
an Asset Sale Offer) to be purchased on a pro rata basis based on the principal amount of
Notes and such other pari passu Indebtedness (in the case of an Asset Sale Offer)
surrendered (with such adjustments as may be deemed appropriate by the Company so that only
Notes in denominations of $2,000, or an integral multiple of $1,000 in excess thereof, will
be purchased); and

     (9) that Holders of Notes whose Notes were purchased only in part will be issued new
Notes equal in principal amount to the unpurchased portion of the Notes surrendered (or
transferred by book-entry transfer).

     On or before the Purchase Date, the Company will, to the extent lawful, accept for payment, on
a pro rata basis to the extent necessary, the Offer Amount of Notes or portions thereof tendered
pursuant to the Asset Sale Offer or Sale of Collateral Offer, as applicable, or if less than the
Offer Amount has been tendered, all Notes tendered, and will deliver or cause to be delivered to
the Trustee the Notes properly accepted together with an Officers’ Certificate stating that such
Notes or portions thereof were accepted for payment by the Company in accordance with the terms of
this Section 3.10. The Company, the Depositary or the Paying Agent, as the case may be, will
promptly (but in any case not later than five days after the Purchase Date) mail or deliver to each
tendering Holder an amount equal to the purchase price of the Notes tendered by such Holder and
accepted by the Company for purchase, and the Company will promptly issue a new Note, and the
Trustee, upon written request from the Company, will authenticate and mail or deliver (or cause to
be transferred by book entry) such new Note to such Holder, in a principal amount equal to any
unpurchased portion of the Note surrendered. Any Note not so accepted shall be promptly mailed or
delivered by the Company to the Holder thereof. The Company will publicly announce the results of
the Asset Sale Offer or Sale of Collateral Offer, as applicable, on the Purchase Date.

     Other than as specifically provided in this Section 3.10, any purchase pursuant to this
Section 3.10 shall be made pursuant to the provisions of Sections 3.01 through 3.06 hereof.

ARTICLE 4

COVENANTS

Section 4.01 Payment of Notes.

     The Company will pay or cause to be paid the principal of, premium, if any, and interest and
Special Interest, if any, on, the Notes on the dates and in the manner provided in the Notes and in
this Indenture. Principal, premium, if any, and interest and Special Interest, if any, will be
considered paid on the date due if the Paying Agent, if other than Parent or a Subsidiary thereof,
holds as of 11:00 a.m. Eastern Time on the due date money deposited by the Company in immediately
available funds and designated for and sufficient to pay all principal, premium, if any, and
interest and Special Interest, if any, then due.

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     The Company will pay interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue principal at the rate equal to 1% per annum in excess of the then
applicable interest rate on the Notes to the extent lawful; it will pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of
interest and Special Interest, if any, (without regard to any applicable grace period) at the same
rate to the extent lawful.

Section 4.02 Maintenance of Office or Agency.

     The Company will maintain in the Borough of Manhattan, the City of New York, an office or
agency (which may be an office of the Trustee or an affiliate of the Trustee, Registrar or
co-registrar) where Notes may be surrendered for registration of transfer or for exchange and where
notices and demands to or upon the Company in respect of the Notes and this Indenture may be
served. The Company will give prompt written notice to the Trustee of the location, and any change
in the location, of such office or agency. If at any time the Company fails to maintain any such
required office or agency or fails to furnish the Trustee with the address thereof, such
presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office
of the Trustee.

     The Company may also from time to time designate one or more other offices or agencies where
the Notes may be presented or surrendered for any or all such purposes and may from time to time
rescind such designations; provided, however, that no such designation or rescission will in any
manner relieve the Company of its obligation to maintain an office or agency in the Borough of
Manhattan, the City of New York for such purposes. The Company will give prompt written notice to
the Trustee of any such designation or rescission and of any change in the location of any such
other office or agency.

     The Company hereby designates the Corporate Trust Office of the Trustee as one such office or
agency of the Company in accordance with Section 2.03 hereof.

Section 4.03 Reports.

     (a) So long as any Notes are outstanding, Parent will furnish to the Trustee, within the time
periods specified in the SEC’s rules and regulations that would apply to Parent if it were subject
to those rules and regulations (whether or not Parent is actually so subject):

     (1) annual reports of Parent containing substantially all of the information that would
have been required to be contained in an Annual Report on Form 10-K under the Exchange Act
if Parent had been a reporting company under the Exchange Act (but only to the extent
similar information is included in the Offering Memorandum), including (A) “Management’s
discussion and analysis of financial condition and results of operations” and (B) audited
financial statements prepared in accordance with GAAP;

     (2) quarterly reports of Parent containing substantially all of the information that
would have been required to be contained in a Quarterly Report on Form 10-Q under the
Exchange Act if Parent had been a reporting company under the Exchange Act (but only to the
extent similar information is included in the Offering Memorandum), including
(A) “Management’s discussion and analysis of financial condition and results of operations”
and (B) the unaudited quarterly financial statements prepared in accordance with GAAP and
reviewed pursuant to Statement on Auditing Standards No. 100 (or any successor provision);
and

     (3) current reports containing substantially all of the information that would have
been required to be contained in a Current Report on Form 8-K under the Exchange Act if
Parent had been a reporting company under the Exchange Act; provided, however, that no such
current

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report will be required to be furnished if (A) Parent determines in its good faith
judgment that such event is not material to Holders of Notes or the business, assets,
operations, financial positions or prospects of Parent and its Restricted Subsidiaries,
taken as a whole or (B) a failure to furnish such current report would not result in Parent
losing its Form S-3 filing eligibility.

     Notwithstanding the foregoing, in no event will Parent be required by this Section 4.03 to
(i) comply with Section 302 or Section 404 of the Sarbanes-Oxley Act of 2002, or related Items 307
and 308 of Regulation S-K promulgated by the SEC, or Item 10(e) of Regulation S-K (with respect to
any non-GAAP financial measures contained therein) or Regulation G, (ii) include the separate
financial information for Guarantors contemplated by Rule 3-10 of Regulation S-X promulgated by the
SEC or (iii) provide any additional information in respect of Item 402 of Regulation S-K beyond
information of the type included in the Offering Memorandum.

     Parent’s reporting obligations under the first paragraph of subparagraph (a) of this Section
4.03 will be satisfied if Parent timely files such reports with the SEC on EDGAR.

     (b) Within 10 Business Days after any Appraisal is required to be delivered pursuant to
Section 4.19 hereof, the Company will furnish to the Trustee a summary of each such Appraisal
(which summary will be made publicly available) and will post the complete Appraisal on a private,
restricted website to which Holders of Notes, prospective investors, broker-dealers and securities
analysts are given access, subject to such individuals agreeing to confidentiality obligations
reasonably acceptable to the Company for securities law purposes.

     (c) So long as any Notes are outstanding, if at any time Parent is not required to file with
the SEC the reports required by the preceding subparagraph (a) of this Section 4.03, Parent will
also:

     (1) issue a press release to an internationally recognized wire service no fewer than
three Business Days prior to the first public disclosure of the reports required by the
preceding subparagraphs (a) and (b) of this Section 4.03 announcing the date on which such
reports will become publicly available and directing Holders of Notes, prospective
investors, broker-dealers and securities analysts to contact the investor relations office
of Parent to obtain copies of such reports; and

     (2) maintain a website to which Holders of Notes, prospective investors, broker-dealers
and securities analysts are given access and to which all of the reports and press releases
required by this Section 4.03 are posted.

     (d) The Company will furnish to Holders of Notes, prospective investors, broker-dealers and
securities analysts, upon their request, any information required to be delivered pursuant to Rule
144A(d)(4) under the Securities Act so long as the Notes constitute “restricted securities” under
Rule 144.

     (e) Delivery of reports, information and documents to the Trustee is for informational
purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained therein, including
compliance by the Company or any Guarantor with any of their covenants hereunder (as to which the
Trustee is entitled to rely exclusively on Officers’ Certificates).

Section 4.04 Compliance Certificate.

     (a) The Company will deliver to the Trustee, within 90 days after the end of each fiscal year,
an Officers’ Certificate stating that a review of the activities of Parent and its Subsidiaries
during the

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preceding fiscal year has been made under the supervision of the signing Officers with a view
to determining whether the Company and the Guarantors have kept, observed, performed and fulfilled
their obligations under this Indenture, and further stating, as to each such Officer signing such
certificate, that to his or her knowledge, the Company and the Guarantors are not in default in the
performance or observance of any of the terms, provisions and conditions of this Indenture (or, if
a Default or Event of Default has occurred, describing all such Defaults or Events of Default of
which he or she may have knowledge and what action the Company and the Guarantors are taking or
propose to take with respect thereto) and that to his or her knowledge no event has occurred and
remains in existence by reason of which payments on account of the principal of, and premium, if
any, or interest and Special Interest, if any, on the Notes is prohibited or if such event has
occurred, a description of the event and what action the Company and the Guarantors are taking or
propose to take with respect thereto.

     (b) So long as any of the Notes are outstanding, the Company will deliver to the Trustee,
within 10 Business Days of any Officer becoming aware of any Default or Event of Default, an
Officers’ Certificate specifying such Default or Event of Default and what action Parent and its
Subsidiaries are taking or propose to take with respect thereto.

Section 4.05 Taxes.

     Parent will pay, and will cause each of its Subsidiaries to pay, prior to delinquency, all
material taxes, assessments, and governmental levies before the same shall become more than 90 days
delinquent, except such as are contested in good faith and by appropriate proceedings or where the
failure to effect such payment would not reasonably be expected to have a material adverse effect
on Parent.

Section 4.06 Stay, Extension and Usury Laws.

     The Company and each of the Guarantors covenants (to the extent that it may lawfully do so)
that it will not at any time insist upon, plead, or in any manner whatsoever claim or take the
benefit or advantage of, any stay, extension or usury law wherever enacted, now or at any time
hereafter in force, that may affect the covenants or the performance of this Indenture; and the
Company and each of the Guarantors (to the extent that it may lawfully do so) hereby expressly
waives all benefit or advantage of any such law, and covenants that it will not, by resort to any
such law, hinder, delay or impede the execution of any power herein granted to the Trustee, but
will suffer and permit the execution of every such power as though no such law has been enacted.

Section 4.07 Restricted Payments.

     (a) Parent will not, and will not permit any of its Restricted Subsidiaries to, directly or
indirectly:

     (1) declare or pay any dividend or make any other payment or distribution on account of
Parent’s or any of its Restricted Subsidiaries’ Equity Interests (including, without
limitation, any payment in connection with any merger or consolidation involving Parent or
any of its Restricted Subsidiaries) or to the direct or indirect holders of Parent’s or any
of its Restricted Subsidiaries’ Equity Interests in their capacity as such (other than
(A) dividends, distributions or payments payable in Qualifying Equity Interests or in the
case of preferred stock of Parent, an increase in the liquidation value thereof and
(B) dividends, distributions or payments payable to Parent or a Restricted Subsidiary of
Parent);

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     (2) purchase, redeem or otherwise acquire or retire for value (including, without
limitation, in connection with any merger or consolidation involving Parent) any Equity
Interests of Parent or any direct or indirect parent of Parent;

     (3) make any payment on or with respect to, or purchase, redeem, defease or otherwise
acquire or retire for value (collectively for purposes of this clause (3), a “purchase”) any
Indebtedness of the Company or any Guarantor that is contractually subordinated to the Notes
or to any Note Guarantee (excluding any intercompany Indebtedness between or among Parent
and any of its Restricted Subsidiaries), except any scheduled payment of interest and any
purchase within one year of the Stated Maturity thereof; or

     (4) make any Restricted Investment,

(all such payments and other actions set forth in these clauses (1) through (4) above being
collectively referred to as “Restricted Payments”),

unless, at the time of and after giving effect to such Restricted Payment:

     (1) no Default or Event of Default has occurred and is continuing;

     (2) Parent would, at the time of such Restricted Payment and after giving pro forma
effect thereto as if such Restricted Payment had been made at the beginning of the
applicable four-quarter period, have been permitted to incur at least $1.00 of additional
Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth in Section 4.09(a)
hereof; and

     (3) such Restricted Payment, together with the aggregate amount of all other Restricted
Payments made by Parent and its Restricted Subsidiaries since the date of this Indenture
(excluding Restricted Payments permitted by clauses (2), (3), (4), (5), (6), (7), (8), (9),
(10), (11), (12), (13), (14) and (15) of Section 4.07(b) hereof), is less than the sum,
without duplication, of:

     (A) 50% of the Consolidated Net Income of Parent for the period (taken as one
accounting period) from the beginning of the first fiscal quarter commencing prior
to the date of this Indenture to the end of Parent’s most recently ended fiscal
quarter for which internal financial statements are available at the time of such
Restricted Payment (or, if such Consolidated Net Income for such period is a
deficit, less 100% of such deficit); plus

     (B) 100% of the aggregate net cash proceeds and the Fair Market Value of
non-cash consideration received by Parent since the date of this Indenture as a
contribution to its common equity capital or from the issue or sale of Qualifying
Equity Interests or from the issue or sale of convertible or exchangeable
Disqualified Stock of Parent or convertible or exchangeable debt securities of
Parent, in each case that have been converted into or exchanged for Qualifying
Equity Interests (other than Qualifying Equity Interests and convertible or
exchangeable Disqualified Stock or debt securities sold to a Subsidiary of Parent
and excluding Excluded Contributions); plus

     (C) to the extent that any Restricted Investment that was made after the date
of this Indenture is (i) sold for cash or otherwise cancelled, liquidated or repaid
for cash or (ii) made in an entity that subsequently becomes a Restricted Subsidiary
of Parent, the

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initial amount of such Restricted Investment (or, if less, the amount of cash
received upon repayment or sale); plus

     (D) to the extent that any Unrestricted Subsidiary of Parent designated as such
after the date of this Indenture is redesignated as a Restricted Subsidiary after
the date of the Indenture, the lesser of (i) the Fair Market Value of Parent’s
Restricted Investment in such Subsidiary as of the date of such redesignation or
(ii) such Fair Market Value as of the date on which such Subsidiary was originally
designated as an Unrestricted Subsidiary after the date of this Indenture; plus

     (E) 100% of any dividends received in cash by Parent or a Restricted Subsidiary
of Parent after the date of this Indenture from an Unrestricted Subsidiary of
Parent, to the extent that such dividends were not otherwise included in the
Consolidated Net Income of Parent for such period.

     (b) The provisions of Section 4.07(a) hereof will not prohibit:

     (1) the payment of any dividend or distribution or the consummation of any irrevocable
redemption within 60 days after the date of declaration of the dividend or distribution or
giving of the redemption notice, as the case may be, if at the date of declaration or
notice, the dividend or redemption payment would have complied with the provisions of this
Indenture;

     (2) the making of any Restricted Payment in exchange for, or out of or with the net
cash proceeds of the substantially concurrent sale (other than to a Subsidiary of Parent)
of, Qualifying Equity Interests or from the substantially concurrent contribution of common
equity capital to Parent; provided that the amount of any such net cash proceeds that are
utilized for any such Restricted Payment will not be considered to be net proceeds of
Qualifying Equity Interests for purposes of clause (a)(3)(B) of Section 4.07 hereof and will
not be considered to be Excluded Contributions;

     (3) the payment of any dividend (or, in the case of any partnership or limited
liability company, any similar distribution), distribution or payment by a Restricted
Subsidiary of Parent to the holders of its Equity Interests on a pro rata basis;

     (4) the repurchase, redemption, defeasance or other acquisition or retirement for value
of Indebtedness of the Company or any Guarantor that is contractually subordinated to the
Notes or to any Note Guarantee with the net cash proceeds from an incurrence of Permitted
Refinancing Indebtedness;

     (5) the repurchase, redemption, acquisition or retirement for value of any Equity
Interests of Parent or any Restricted Subsidiary of Parent held by any current or former
officer, director, consultant or employee (or their estates or beneficiaries of their
estates) of Parent or any of its Restricted Subsidiaries pursuant to any management equity
plan or equity subscription agreement, stock option agreement, shareholders’ agreement or
similar agreement; provided that the aggregate price paid for all such repurchased,
redeemed, acquired or retired Equity Interests may not exceed $10.0 million in any 12-month
period (except to the extent such repurchase, redemption, acquisition or retirement is in
connection with the acquisition of a Permitted Business or merger, consolidation or
amalgamation otherwise permitted by this Indenture and in such case the aggregate price paid
by Parent and its Restricted Subsidiaries may not exceed $50.0 million in connection with
such acquisition of a Permitted Business or merger, consolidation or amalgamation); provided
further that Parent or any of its Restricted Subsidiaries may carry over

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and make in subsequent 12-month periods, in addition to the amounts permitted for such
12-month period, up to $5.0 million of unutilized capacity under this clause (5)
attributable to the immediately preceding twelve-month period;

     (6) the repurchase of Equity Interests or other securities deemed to occur upon (A) the
exercise of stock options, warrants or other securities convertible or exchangeable into
Equity Interests or any other securities, to the extent such Equity Interests or other
securities represent a portion of the exercise price of those stock options, warrants or
other securities convertible or exchangeable into Equity Interests or any other securities
or (B) the withholding of a portion of Equity Interests issued to employees and other
participants under an equity compensation program of Parent or its Subsidiaries to cover
withholding tax obligations of such persons in respect of such issuance;

     (7) so long as no Default or Event of Default has occurred and is continuing, the
declaration and payment of regularly scheduled or accrued dividends, distributions or
payments to holders of any class or series of Disqualified Stock of Parent or any preferred
stock of any Restricted Subsidiary of Parent issued on or after the date of this Indenture
in accordance with Section 4.09 hereof;

     (8) payments of cash, dividends, distributions, advances, common stock or other
Restricted Payments by Parent or any of its Restricted Subsidiaries to allow the payment of
cash in lieu of the issuance of fractional shares upon (A) the exercise of options or
warrants or (B) the conversion or exchange of Capital Stock of any such Person;

     (9) the declaration and payment of dividends to holders of any class or series of
Disqualified Stock of Parent or any Disqualified Stock or preferred stock of any Restricted
Subsidiary to the extent such dividends are included in the definition of “Fixed Charges”
for such Person;

     (10) in the event of a Change of Control, and if no Default shall have occurred and be
continuing, the payment, purchase, redemption, defeasance or other acquisition or retirement
of any subordinated Obligations of the Company or Parent, in each case, at a purchase price
not greater than 101% of the principal amount of such subordinated Obligations, plus any
accrued and unpaid interest thereon; provided, however, that prior to such payment,
purchase, redemption, defeasance or other acquisition or retirement, the Company (or a third
party to the extent permitted by this Indenture) has made a Change of Control Offer with
respect to the Notes as a result of such change of control and has repurchased all Notes
validly tendered and not withdrawn in connection with such Change of Control Offer;

     (11) Restricted Payments made with Excluded Contributions;

     (12) the distribution, as a dividend or otherwise, of shares of Capital Stock of, or
Indebtedness owed to, Parent or any of its Restricted Subsidiaries by any Unrestricted
Subsidiary;

     (13) the distribution or dividend of assets or Capital Stock of any Person in
connection with any full or partial “spin-off” of a Subsidiary or similar transactions;
provided that Parent would, on the date of such distribution after giving pro forma effect
thereto as if the same had occurred at the beginning of the applicable four-quarter period,
be permitted to incur at least $1.00 of additional Indebtedness pursuant to the Fixed Charge
Coverage Ratio test set forth in Section 4.09(a) hereof; provided further that the assets
distributed or dividended do not include,

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directly or indirectly, any Japan Routes, Japan Slots, Japan Gate Leaseholds or any
property or asset that constitutes Collateral;

     (14) the distribution or dividend of assets or Capital Stock of any Person in
connection with any full or partial “spin-off” of a Subsidiary or similar transactions
having an aggregate Fair Market Value not to exceed $500.0 million since the date of this
Indenture; provided that the assets distributed or dividended do not include, directly or
indirectly, any Japan Routes, Japan Slots, Japan Gate Leaseholds or any property or asset
that constitutes Collateral; and

     (15) so long as no Default or Event of Default has occurred and is continuing, other
Restricted Payments in an aggregate amount not to exceed $250.0 million since the date of
this Indenture.

     The amount of all Restricted Payments (other than cash) will be the Fair Market Value on the
date of the Restricted Payment of the asset(s) or securities proposed to be transferred or issued
by Parent or such Restricted Subsidiary, as the case may be, pursuant to the Restricted Payment.
The Fair Market Value of any assets or securities that are required to be valued by this Section
4.07 will be determined by the Board of Directors of Parent whose resolution with respect thereto
will be delivered to the Trustee.

     For purposes of determining compliance with this Section 4.07, in the event that a proposed
Restricted Payment (or portion thereof) meets the criteria of more than one of the categories of
Restricted Payments described in clauses (1) through (15) of subparagraph (b) of this Section 4.07,
or is entitled to be made pursuant to subparagraph (a) of this Section 4.07, Parent will be
entitled to classify or later reclassify such Restricted Payment (or portion thereof) on the date
of its payment in any manner that complies with this Section 4.07.

Section 4.08 Dividend and Other Payment Restrictions Affecting Subsidiaries.

     (a) Parent will not, and will not permit any of its Restricted Subsidiaries to, directly or
indirectly, create or permit to exist or become effective any consensual encumbrance or restriction
on the ability of any Restricted Subsidiary to:

     (1) pay dividends or make any other distributions on its Capital Stock to Parent or any
of its Restricted Subsidiaries or with respect to any other interest or participation in, or
measured by, its profits, or pay any indebtedness owed to Parent or any of its Restricted
Subsidiaries;

     (2) make loans or advances to Parent or any of its Restricted Subsidiaries; or

     (3) sell, lease or transfer any of its properties or assets to Parent or any of its
Restricted Subsidiaries.

     (b) The restrictions in Section 4.08(a) hereof will not apply to encumbrances or restrictions
existing under or by reason of:

     (1) agreements (A) governing Existing Indebtedness, Credit Facilities, Junior Lien
Obligations and any other Priority Lien Obligations, in each case as in effect on (or
required by agreements in effect on) the date of this Indenture or (B) in effect on the date
of this Indenture;

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     (2) this Indenture, the Note Guarantees, the Security Documents, the Escrow and
Security Agreement and the Second Lien Escrow and Security Agreement;

     (3) agreements governing other Indebtedness or shares of preferred stock permitted to
be incurred or issued under the provisions of Section 4.09 hereof; provided that if such
Restricted Subsidiary incurring or issuing such Indebtedness or shares of preferred stock is
not a Guarantor, the restrictions therein are either (in each case, as determined in good
faith by a senior financial officer of Parent) (A) not materially more restrictive, taken as
a whole, than those contained in this Indenture, the Notes and the Note Guarantees or
(B)(i) customary for instruments of such type and (ii) will not materially adversely impact
the ability of the Company to make required principal and interest payments on the Notes;

     (4) applicable law, rule, regulation or order;

     (5) any instrument governing Indebtedness or Capital Stock of a Person acquired by
Parent or any of its Restricted Subsidiaries (including by way of merger, consolidation or
amalgamation of Parent or any of its Restricted Subsidiaries) as in effect at the time of
such acquisition (except to the extent such Indebtedness or Capital Stock was incurred in
connection with or in contemplation of such acquisition), which encumbrance or restriction
is not applicable to any Person, or the properties or assets of any Person, other than the
Person, or the property or assets of the Person, so acquired; provided that, in the case of
Indebtedness, such Indebtedness was permitted by the terms of this Indenture to be incurred;

     (6) customary provisions in contracts, licenses, leases and asset sale agreements
entered into in the ordinary course of business;

     (7) purchase money obligations for property acquired in the ordinary course of business
and Capital Lease Obligations that impose restrictions on the property (or proceeds thereof)
purchased or leased of the nature described in clause (3) of Section 4.08(a) hereof;

     (8) any contract or agreement for the sale or other disposition of a Restricted
Subsidiary that restricts distributions, asset sales or loans by that Restricted Subsidiary
pending its sale or other disposition;

     (9) Permitted Refinancing Indebtedness; provided that such amendment, modification,
restatement, renewal, extension, increase, supplement, refunding, replacement or refinancing
is, in the good faith judgment of a senior financial officer of Parent, taken together as a
whole, not materially more restrictive with respect to such dividend and other payment
restrictions than those contained in (A) the dividend or other payment restrictions prior to
such amendment, modification, restatement, renewal, extension, increase, supplement,
refunding, replacement or refinancing or (B) this Indenture;

     (10) Liens permitted to be incurred under the provisions of Section 4.12 hereof that
limit the right of the debtor to dispose of the assets subject to such Liens;

     (11) provisions limiting the disposition or distribution of assets or property or loans
or advances in joint venture agreements, asset sale agreements, sale-leaseback agreements,
stock sale agreements and other similar agreements (including agreements entered into in
connection with a Restricted Investment) entered into with the approval of Parent’s Board of
Directors, which limitation is applicable only to the assets or the joint venture entity, as
applicable, that are the subject of such agreements or otherwise in the ordinary course of
business;

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     (12) restrictions on cash or other deposits or net worth imposed by customers under
contracts entered into in the ordinary course of business;

     (13) any instrument or agreement entered into in connection with any full or partial
“spin-off” or similar transactions;

     (14) any encumbrance or restriction of the type referred to in clauses (1), (2) and (3)
of Section 4.08(a) imposed by any amendments, modifications, restatements, renewals,
extensions, increases, supplements, refundings, replacements or refinancings of the
contracts, instruments or obligations referred to in clauses (1) through (13) of this
Section 4.08(b); provided that such amendment, modification, restatement, renewal,
extension, increase, supplement, refunding, replacement or refinancing is, in the good faith
judgment of a senior financial officer of Parent, taken together as a whole, not materially
more restrictive with respect to such dividend and other payment restrictions than those
contained in (A) the dividend or other payment restrictions prior to such amendment,
modification, restatement, renewal, extension, increase, supplement, refunding, replacement
or refinancing or (B) this Indenture; and

     (15) any encumbrance or restriction existing under or by reason of Indebtedness or
other contractual requirements of a Receivables Subsidiary or any Standard Securitization
Undertaking, in each case, in connection with a Qualified Receivables Transaction; provided
that such restrictions apply only to such Receivables Subsidiary.

Section 4.09 Incurrence of Indebtedness and Issuance of Preferred Stock.

     (a) Parent will not, and will not permit any of its Restricted Subsidiaries to, directly or
indirectly, create, incur, issue, assume, guarantee or otherwise become directly or indirectly
liable, contingently or otherwise, with respect to (collectively, “incur”) any Indebtedness
(including Acquired Debt), and Parent will not issue any Disqualified Stock and will not permit any
of its Restricted Subsidiaries to issue any shares of preferred stock; provided, however, that
Parent’s Restricted Subsidiaries may incur Indebtedness (including Acquired Debt) or issue
preferred stock, and Parent may incur Indebtedness (including Acquired Debt) or issue Disqualified
Stock, if the Fixed Charge Coverage Ratio for Parent’s most recently ended four full fiscal
quarters for which internal financial statements are available immediately preceding the date on
which such additional Indebtedness is incurred or such Disqualified Stock or such preferred stock
is issued, as the case may be, would have been at least 1.2 to 1.0, determined on a pro forma basis
(including a pro forma application of the net proceeds therefrom), as if the additional
Indebtedness had been incurred or the Disqualified Stock or the preferred stock had been issued, as
the case may be, at the beginning of such four-quarter period.

     (b) The provisions of Section 4.09(a) hereof will not prohibit the incurrence of any of the
following items of Indebtedness (collectively, “Permitted Debt”):

     (1) the incurrence by the Company and any Guarantor of the Notes to be issued on the
date of this Indenture and any other additional Indebtedness and letters of credit (and
reimbursement obligations with respect thereto) that will constitute Priority Lien Debt, and
any Permitted Refinancing Indebtedness that does not constitute Priority Lien Debt and that
is incurred to renew, refund, refinance, replace, defease, extend or discharge any other
Indebtedness incurred pursuant to this clause (1), in an aggregate principal amount at any
one time outstanding under this clause (1) (with letters of credit being deemed to have a
principal amount equal to the maximum potential liability of the Company and any Guarantor
thereunder and including all other Priority Lien Debt that will be outstanding after such
incurrence and the application of the proceeds therefrom), not to exceed the Priority Lien
Cap;

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     (2) the incurrence by Parent and its Restricted Subsidiaries of the Existing
Indebtedness and any Indebtedness that is incurred pursuant to a commitment in existence as
of date of this Indenture, including notes issuable under the indenture dated as of
February 1, 2006, among Parent, the Company and The Bank of New York Trust Company, N.A.,
providing for the issuance of 8% Contingent Notes;

     (3) the incurrence by the Company and any Guarantor of (A) Indebtedness and letters of
credit (and reimbursement obligations with respect thereto) under Credit Facilities in an
aggregate principal amount at any one time outstanding under this clause (3) (with letters
of credit being deemed to have a principal amount equal to the maximum potential liability
of Parent and its Restricted Subsidiaries thereunder) not to exceed $1.75 billion and (B)
Indebtedness and letters of credit (and reimbursement obligations with respect thereto)
under Credit Facilities secured on a junior priority basis by some or all of the collateral
securing Indebtedness under Credit Facilities contemplated by clause (A) of this clause (3)
in an aggregate principal amount at any one time outstanding under this clause (3)(B) (with
letters of credit being deemed to have a principal amount equal to the maximum potential
liability of Parent and its Restricted Subsidiaries thereunder) not to exceed $1.5 billion;
provided that no Indebtedness or letters of credit incurred pursuant to this clause (3) is
secured by a Lien on the Japan Routes, Japan Slots, Japan Gate Leaseholds or any property or
asset that constitutes Collateral;

     (4) the incurrence by Parent or any of its Restricted Subsidiaries of Indebtedness
represented by Capital Lease Obligations, mortgage financings or purchase money obligations,
in each case, incurred for the purpose of financing all or any part of the purchase price or
cost of design, construction, installation or improvement of property, plant or equipment
used in the business of Parent or any of its Restricted Subsidiaries, in an aggregate
principal amount (or accreted value, as applicable), including all Permitted Refinancing
Indebtedness incurred to renew, refund, refinance, replace, extend, defease or discharge any
Indebtedness incurred pursuant to this clause (4), not to exceed $500.0 million at any time
outstanding; provided that no Indebtedness incurred pursuant to this clause (4) is secured
by a Lien on the Japan Routes, Japan Slots, Japan Gate Leaseholds or any property or asset
that constitutes Collateral;

     (5) the incurrence by Parent or any of its Restricted Subsidiaries of (A) Permitted
Refinancing Indebtedness in exchange for, or the net proceeds of which are used to renew,
refund, refinance, replace, extend, defease or discharge any Indebtedness (other than
intercompany Indebtedness) that was permitted by this Indenture to be incurred under Section
4.09(a) or clauses (2), (4), (5), (6), (13), (20), (21), (24), (25) or (26) of this Section
4.09(b) and (B) Permitted Refinancing Indebtedness secured by aircraft, engines, spare parts
or other assets replacing, renewing, refunding, extending, refinancing, defeasing or
discharging any other Indebtedness of Parent or any of its Restricted Subsidiaries that was
secured by aircraft, engines, spare parts or other assets; provided that notwithstanding
clause (1) of the definition of “Permitted Refinancing Indebtedness,” such Permitted
Refinancing Indebtedness shall be permitted under clauses (A) and (B) so long as the
aggregate principal amount of such Permitted Refinancing Indebtedness, as of the date of its
incurrence, does not cause the loan to value ratio of such Permitted Refinancing
Indebtedness to exceed 80% of the appraised value of the assets securing such Indebtedness;
provided further that if more than one series of Indebtedness is being replaced at any one
time, the loan to value ratio of all such replaced Indebtedness will be calculated based on
the aggregate loan to value ratio of all series of Indebtedness being replaced at that time;

     (6) the incurrence by Parent or any of its Restricted Subsidiaries of Indebtedness
(including Acquired Debt) (A) as part of, or to finance, the acquisition (including by way
of

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merger) of any Permitted Business or (B) incurred in connection with the acquisition
of, or merger with or into, any Person that owns a Permitted Business;

     (7) the incurrence by Parent or any of its Restricted Subsidiaries of intercompany
Indebtedness between or among Parent and any of its Restricted Subsidiaries; provided,
however, that:

     (A) if the Company or any Guarantor is the obligor on such Indebtedness and the
payee is not the Company or a Guarantor, such Indebtedness must be unsecured and
expressly subordinated to the prior payment in full in cash of all Obligations then
due with respect to the Notes, in the case of the Company, or the Note Guarantee, in
the case of a Guarantor; and

     (B) (i) any subsequent issuance or transfer of Equity Interests that results in
any such Indebtedness being held by a Person other than Parent or a Restricted
Subsidiary of Parent and (ii) any sale or other transfer of any such Indebtedness to
a Person that is not either Parent or a Restricted Subsidiary of Parent,

will be deemed, in each case under this clause (B), to constitute an incurrence of such
Indebtedness by Parent or such Restricted Subsidiary, as the case may be, that was not
permitted by this clause (7);

     (8) the issuance by any of Parent’s Restricted Subsidiaries to Parent or to any of its
Restricted Subsidiaries of shares of preferred stock; provided, however, that:

     (A) any subsequent issuance or transfer of Equity Interests that results in any
such preferred stock being held by a Person other than Parent or a Restricted
Subsidiary of Parent; and

     (B) any sale or other transfer of any such preferred stock to a Person that is
not either Parent or a Restricted Subsidiary of Parent,

will be deemed, in each case, to constitute an issuance of such preferred stock by such
Restricted Subsidiary that was not permitted by this clause (8);

     (9) the incurrence by Parent or any of its Restricted Subsidiaries of Hedging
Obligations in the ordinary course of business;

     (10) the guarantee by Parent or any Restricted Subsidiary of Parent of Indebtedness of
Parent or a Restricted Subsidiary of Parent to the extent that the guaranteed Indebtedness
was permitted to be incurred by another provision of this Section 4.09; provided that if the
Indebtedness being guaranteed is subordinated to or pari passu with the Notes, then the
Guarantee must be subordinated or pari passu, as applicable, to the same extent as the
Indebtedness guaranteed;

     (11) the incurrence by Parent or any of its Restricted Subsidiaries of Indebtedness in
respect of workers’ compensation claims, self-insurance obligations, bankers’ acceptances,
performance and surety bonds in the ordinary course of business;

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     (12) the incurrence by Parent or any of its Restricted Subsidiaries of Indebtedness in
respect of any overdrafts and related liabilities arising from treasury, depository and cash
management services or in connection with any automated clearing house transfers of funds;

     (13) Indebtedness (A) constituting credit support or financing from aircraft or engine
manufacturers or their affiliates or (B) incurred to finance the acquisition of aircraft,
engines, spare parts or other operating assets; provided that no Indebtedness may be
incurred in reliance on subsection (B) of this clause (13) more than 12 months after such
acquisition; provided further that no such Indebtedness incurred in reliance on this clause
(13) may be secured by a Lien on the Japan Routes, Japan Slots, Japan Gate Leaseholds or any
property or assets that constitute Collateral;

     (14) Indebtedness issued to current or former directors, consultants, managers,
officers and employees and their spouses or estates to purchase or redeem Capital Stock of
Parent issued to such director, consultant, manager, officer or employee in an aggregate
principal amount not to exceed $3.0 million in any 12-month period;

     (15) reimbursement obligations in respect of standby or documentary letters of credit
or banker’s acceptances that are not secured by Liens on the Japan Routes, Japan Slots,
Japan Gate Leaseholds or any property or asset that constitutes Collateral;

     (16) surety and appeal bonds that are not secured by Liens on the Japan Routes, Japan
Slots, Japan Gate Leaseholds or any property or asset that constitutes Collateral and that
do not secure judgments that constitute an Event of Default;

     (17) Indebtedness of Parent or any of its Restricted Subsidiaries to credit card
processors in connection with credit card processing services incurred in the ordinary
course of business of Parent and its Restricted Subsidiaries;

     (18) the incurrence by a Receivables Subsidiary of Indebtedness in a Qualified
Receivables Transaction that is without recourse to Parent or to any other Subsidiary of
Parent or their assets (other than such Receivables Subsidiary and its assets and, as to
Parent or any other Subsidiary of Parent, other than Standard Securitization Undertakings)
and is not guaranteed by any such Person;

     (19) the incurrence of Indebtedness of Parent or any of its Restricted Subsidiaries
owed to one or more Persons in connection with the financing of insurance premiums in the
ordinary course of business;

     (20) the incurrence of obligations under the Co-Branded Agreement to the extent such
obligations may be deemed to constitute Indebtedness of Parent or any of its Restricted
Subsidiaries;

     (21) the incurrence of obligations under the Jet Fuel Supply Agreement to the extent
such obligations may be deemed to constitute Indebtedness of Parent or any of its Restricted
Subsidiaries, including all Permitted Refinancing Indebtedness incurred to renew, refund,
refinance, replace, extend, defease or discharge any Indebtedness incurred pursuant to this
clause (21), not to exceed $50.0 million at any time outstanding;

     (22) Indebtedness arising from agreements of Parent or any of its Restricted
Subsidiaries providing for indemnification, adjustment of purchase price or similar
obligations, in

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each case, incurred or assumed in connection with the acquisition or disposition of any
business, assets or a Subsidiary; provided that the maximum assumable liability in respect
of all such Indebtedness shall at no time exceed the gross proceeds, including non-cash
proceeds (the Fair Market Value of such non-cash proceeds being measured at the time
received and without giving effect to any subsequent changes in value) actually received by
Parent or any of its Restricted Subsidiaries in connection with such disposition;

     (23) Indebtedness of the Company or Parent consisting of take-or-pay obligations
contained in supply agreements entered into in the ordinary course of business and
consistent with past practices of the Company or Parent, as applicable;

     (24) the incurrence by Parent or any of its Restricted Subsidiaries of additional
Indebtedness that is either (A) unsecured and expressly contractually subordinated to the
prior payment in full in cash of all Obligations with respect to the Notes and the Note
Guarantees on terms not materially less favorable to Holders of Notes than those customary
at the time of incurrence (determined in good faith by a senior financial officer of Parent)
for senior subordinated “high yield” debt securities or (B) unsecured, pari passu with all
Obligations with respect to the Notes and the Note Guarantees and convertible into common
stock of Parent; provided that the aggregate principal amount of Indebtedness incurred
pursuant to clauses (A) and (B) together, including all Permitted Refinancing Indebtedness
incurred to renew, refund, refinance, replace, extend, defease or discharge any Indebtedness
incurred pursuant to this clause (24), does not exceed $500.0 million at any time
outstanding;

     (25) the incurrence by Parent or any of its Restricted Subsidiaries of additional
Indebtedness that is not secured by a Lien on the Japan Routes, Japan Slots, Japan Gate
Leaseholds or any property or asset that constitutes Collateral in an aggregate principal
amount (or accreted value, as applicable), including all Permitted Refinancing Indebtedness
incurred to renew, refund, refinance, replace, extend, defease or discharge any Indebtedness
incurred pursuant to this clause (25), not to exceed $500.0 million at any time outstanding;
and

     (26) the incurrence by the Company and any Guarantor of Indebtedness and letters of
credit (and reimbursement obligations with respect thereto) that will constitute either
Junior Lien Debt (including the Second Lien Notes) or Third Lien Debt, and any Permitted
Refinancing Indebtedness that does not constitute Junior Lien Debt or Third Lien Debt and
that is incurred to renew, refund, refinance, replace, defease, extend or discharge any
other Indebtedness incurred pursuant to this clause (26), in an aggregate principal amount
at any one time outstanding under this clause (26) (with letters of credit being deemed to
have a principal amount equal to the maximum potential liability of United and any Guarantor
thereunder and including all other Junior Lien Debt and Third Lien Debt that will be
outstanding after such incurrence and the application of the proceeds therefrom), not to
exceed $300.0 million.

     (c) The Company will not incur, and will not permit any Guarantor to incur, any Indebtedness
(including Permitted Debt) that is contractually subordinated in right of payment to any other
Indebtedness of the Company or such Guarantor unless such Indebtedness is also contractually
subordinated in right of payment to the Notes and the applicable Note Guarantee on substantially
identical terms; provided, however, that no Indebtedness shall be deemed to be contractually
subordinated in right of payment to any other Indebtedness of the Company or such Guarantor solely
by virtue of being unsecured or by virtue of being secured on a junior priority basis.

     For purposes of determining compliance with this Section 4.09, in the event that an item of
Indebtedness meets the criteria of more than one of the categories of Permitted Debt described in
clauses

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(1) through (26) of Section 4.09(b) hereof or is entitled to be incurred pursuant to Section
4.09(a) hereof, Parent will be permitted to classify such item of Indebtedness on the date of its
incurrence, or later reclassify all or a portion of such item of Indebtedness, in any manner that
complies with this Section 4.09; provided that (A) all Priority Lien Debt will at all times be
deemed to have been incurred in reliance on the exception provided by clause (1) of the definition
of “Permitted Debt,” (B) all Junior Lien Debt will at all times be deemed to have been incurred in
reliance on the exception provided by clause (26) of the definition of Permitted Debt and (C) the
term “Existing Indebtedness” will not include any Indebtedness that is permitted to be incurred
under clauses (1), (3) or (26) of the definition of “Permitted Debt.”

     The accrual of interest or preferred stock dividends, the accretion or amortization of
original issue discount, the payment of interest on any Indebtedness in the form of additional
Indebtedness with the same terms, the reclassification of preferred stock as Indebtedness due to a
change in accounting principles and the payment of dividends on preferred stock or Disqualified
Stock in the form of additional shares of the same class of preferred stock or Disqualified Stock
will not be deemed to be an incurrence of Indebtedness or an issuance of preferred stock or
Disqualified Stock for purposes of this Section 4.09.

     For purposes of determining compliance with any U.S. dollar-denominated restriction on the
incurrence of Indebtedness, the U.S. dollar-equivalent principal amount of Indebtedness denominated
in a foreign currency shall be utilized, calculated based on the relevant currency exchange rate in
effect on the date such Indebtedness was incurred. Notwithstanding any other provision of this
Section 4.09, the maximum amount of Indebtedness that Parent or any of its Restricted Subsidiaries
may incur pursuant to this Section 4.09 shall not be deemed to be exceeded solely as a result of
fluctuations in exchange rates or currency values.

     The amount of any Indebtedness outstanding as of any date will be:

     (1) the accreted value of the Indebtedness, in the case of any Indebtedness issued with
original issue discount;

     (2) the principal amount of the Indebtedness, in the case of any other Indebtedness;
and

     (3) in respect of Indebtedness of another Person secured by a Lien on the assets of the
specified Person, the lesser of:

     (A) the Fair Market Value of such assets at the date of determination; and

     (B) the amount of the Indebtedness of the other Person.

Section 4.10 Asset Sales.

     (a) Parent will not, and will not permit any of its Restricted Subsidiaries to, consummate an
Asset Sale unless:

     (1) Parent (or the Restricted Subsidiary, as the case may be) receives consideration at
the time of the Asset Sale at least equal to the Fair Market Value (measured as of the date
of the definitive agreement with respect to such Asset Sale) of the assets or Equity
Interests issued, sold or otherwise disposed of; provided that this clause (1) will not
apply to (i) any involuntary disposition or (ii) any disposition of Slots or Gate
Leaseholds;

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     (2) at least 75% of the consideration received in the Asset Sale by Parent or such
Restricted Subsidiary is in the form of cash or Cash Equivalents, Qualified Replacement
Assets, or a combination thereof; provided that this clause (2) will not apply to (i) any
involuntary disposition or (ii) any disposition of (x) Slots or Gate Leaseholds, (y) assets
used or useful in connection with any loyalty program, maintenance, repair and overhaul
business or flight center training business or (z) Capital Stock of any Person that owns
assets of the kind referred to in clauses (x) or (y) of this proviso. For purposes of this
clause (2), in the case of any Asset Sale that is not a Sale of Collateral, each of the
following will be deemed to be cash:

     (A) any liabilities, as shown on the most recent consolidated balance sheet, of
Parent or any Restricted Subsidiary (other than contingent liabilities and
liabilities that are by their terms subordinated to the Notes or any Note Guarantee)
that are assumed by the transferee of any such assets;

     (B) any securities, notes or other obligations received by Parent or any such
Restricted Subsidiary from such transferee that are, within 90 days, converted by
Parent or such Restricted Subsidiary into cash or Cash Equivalents, to the extent of
the cash or Cash Equivalents received in that conversion;

     (C) any stock or assets of the kind referred to in clauses (3) or (5) of
Section 4.10(b) hereof; and

     (D) any Designated Noncash Consideration received by Parent or such Restricted
Subsidiary in such Asset Sale, having an aggregate Fair Market Value, taken together
with all other Designated Noncash Consideration received pursuant to this clause (D)
that is at that time outstanding, not to exceed $400.0 million, with the Fair Market
Value of each item of Designated Noncash Consideration being measured at the time
received and without giving effect to subsequent changes in value;

     (3) in the case of an Asset Sale after the Release Date that constitutes a Sale of
Collateral, the Company deposits the Net Proceeds therefrom within two Business Days, or in
the case of a sale of Cure Collateral, within five Business Days, of receipt thereof as
Collateral in a segregated account or accounts (each, a “Collateral Proceeds Account”) held
by or under the control of (for purposes of the Uniform Commercial Code) the Collateral
Trustee or its agent to secure all Secured Debt Obligations; provided, however, that the
Company will not be required to cause any Net Proceeds from a Sale of Collateral to be held
in the Collateral Proceeds Account except to the extent the aggregate Net Proceeds from all
Sales of Collateral that are not held in the Collateral Proceeds Account would exceed $5.0
million; and

     (4) in the case of an Asset Sale after the Release Date that constitutes a Sale of
Collateral, the Company delivers an Appraisal to the Trustee and the Collateral Trustee
demonstrating, with reasonably detailed calculations, the Priority Lien Debt Value Ratio,
after giving pro forma effect to such Sale of Collateral (excluding, for purposes of
calculating the Priority Lien Debt Value Ratio, the proceeds of such Sale of Collateral and
the intended use thereof); and provided that:

     (A) if the pro forma Priority Lien Debt Value Ratio (calculated as provided in
clause (4) of this Section 4.10(a)) would have been at least 1.5 to 1.0, within
365 days after the receipt of any Net Proceeds from such a Sale of Collateral, the
Company may apply such Net Proceeds:

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     (i) to purchase Qualified Replacement Assets;

     (ii) to purchase Cure Collateral, in the case of Net Proceeds received
from any sale of Cure Collateral;

     (iii) to repay Indebtedness (other than Secured Debt Obligations or
Third Lien Obligations) that is secured by a Permitted Lien on any
Collateral that was sold in such Sale of Collateral;

     (iv) to optionally redeem all or a part of the Notes pursuant to any of
the provisions of Section 3.07 hereof; or

     (v) to make a capital expenditure to augment, increase, renovate or
renew assets that constitute Collateral;

provided that the Company will be deemed to have complied with the provision
described in clauses (i), (ii) and (v) of this Section 4.10(a)(4)(A) if and to the
extent that, within 365 days after the Sale of Collateral that generated the Net
Proceeds, the Company has entered into and not abandoned or rejected a binding
agreement to acquire the assets that would constitute Collateral or make a capital
expenditure in compliance with the provision described in clauses (i), (ii) and
(v) of this Section 4.10(a)(4)(A), and that acquisition, purchase or capital
expenditure is thereafter completed within 180 days after the end of such 365-day
period;

     (B) if the pro forma Priority Lien Debt Value Ratio (calculated as provided in
clause (4) of this Section 4.10(a)) would have been less than 1.5 to 1.0 and equal
to or greater than 1.25 to 1.0, the Company will:

     (i) pay Special Interest commencing on the date of such Sale of
Collateral. The Company may, within 45 days after such Sale of Collateral,
grant a Secured Debt Lien on Qualified Replacement Assets to secure all
current and future Secured Debt Obligations, in which event the pro forma
Priority Lien Debt Value Ratio will be recalculated and such Qualified
Replacement Assets will be included in the calculation of the pro forma
Priority Lien Debt Value Ratio (calculated as provided in clause (4) of this
Section 4.10(a)). If, after the pledge of Qualified Replacement Assets
within the 45-day period contemplated by the preceding sentence and the
recalculation of the pro forma Priority Lien Debt Value Ratio pursuant to
the preceding sentence, the Company’s pro forma Priority Lien Debt Value
Ratio (calculated as provided in clause (4) of this Section 4.10(a)) is at
least 1.5 to 1.0, no Special Interest will accrue pursuant to this clause
(i) of this Section 4.10(a)(4)(B);

     (ii) contribute to the Collateral Proceeds Account within two Business
Days of the closing of such Sale of Collateral: (x) 100% of the cash and
Cash Equivalents received in such Sale of Collateral and (y) cash or Cash
Equivalents in an amount equal to the Fair Market Value of the non-cash
consideration received in such Sale of Collateral (the aggregate amount of
cash and Cash Equivalents contemplated by clauses (x) and (y) is
collectively referred to as the “Sale of Collateral Consideration”);

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     (iii) within five Business Days of the date on which the aggregate
amount of Sale of Collateral Consideration from such Sale of Collateral and
all prior Sales of Collateral contemplated by this clause (a)(4)(B) that has
not previously been used to make an offer to repurchase the Notes, the
Second Lien Notes or other Junior Lien Debt containing provisions similar to
those in the Second Lien Notes, if any, pursuant to this clause (iii) of
this Section 4.10(a)(4)(B) exceeds $10.0 million, (x) make an offer to
repurchase, for cash, the Notes in an amount equal to the Sale of Collateral
Consideration, whereby (I) the offer price will be equal to 103% of the
principal amount, plus accrued and unpaid interest and Special Interest, if
any, to the date of purchase, subject to the rights of Holders of Notes on
the relevant record date to receive interest due on the relevant interest
payment date and (II) if the aggregate principal amount of Notes tendered in
such offer exceeds the Sale of Collateral Consideration, the Trustee will
select the Notes to be purchased pro rata based on the aggregate principal
amounts so tendered (with such adjustments as may be deemed appropriate by
the Company so that only Notes in denominations of $2,000, or an integral
multiple of $1,000 in excess thereof, will be purchased) and (y) if the Sale
of Collateral Consideration exceeds the aggregate principal amount of Notes
tendered in such offer described in clause (x) above (such excess amount,
the “Consideration Remainder”), the Company will, within five Business Days
of the consummation of such offer described in clause (x) above, make an
offer to repurchase, for cash, the Second Lien Notes and other Junior Lien
Debt containing provisions similar to those in the Second Lien Notes, if
any, in an amount equal to the Consideration Remainder, pursuant to the
terms of the Second Lien Notes Indenture and the agreements governing such
other Junior Lien Debt, as applicable (the offers described in clauses (x)
and (y) together, a “Sale of Collateral Offer”); and

     (iv) retain any cash or Cash Equivalents remaining after the
consummation of the Sale of Collateral Offer in the Collateral Proceeds
Account as Collateral, unless the Company, at its option, chooses to use
such funds to (x) purchase Qualified Replacement Assets or (y) optionally
redeem all or a part of the Notes pursuant to any of the provisions of
Section 3.07 hereof; and

     (C) if the pro forma Priority Lien Debt Value Ratio (calculated as provided in
clause (4) of this Section 4.10(a)) would have been less than 1.25 to 1.0, the
Company will, prior to such Sale of Collateral, grant a Secured Debt Lien on such
amount of Qualified Replacement Assets to secure all current and future Secured Debt
Obligations as would be necessary to cause the calculation of the pro forma Priority
Lien Debt Value Ratio as of the date of such Sale of Collateral, calculated as if
such pledge of Qualified Replacement Assets had already occurred, to be at least
1.25 to 1.0. If the recalculated pro forma Priority Lien Debt Value Ratio would have
been at least 1.5 to 1.0, the Company will comply with clause (4)(A) of this Section
4.10(a) in connection with such Sale of Collateral, otherwise, the Company will
comply with clause (4)(B) of this Section 4.10(a).

     For the avoidance of doubt, in no event will the Company (i) consummate any Asset Sale that
constitutes a Sale of Collateral if the Company’s Priority Lien Debt Value Ratio is or would be
less than 1.25 to 1.0 (excluding the proceeds of such Sale of Collateral and the intended use
thereof) or (ii) sell, lease, convey, transfer or otherwise dispose of the Japan Routes.

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     Notwithstanding anything to the contrary herein, the Company shall not consummate any Asset
Sale to the extent involving a sale, lease or other disposition of Japan Slots or Japan Gate
Leaseholds until the Release Date. For the avoidance of doubt, the Company will not sell, lease,
convey, transfer or otherwise dispose of the Japan Routes.

     (b) Within 365 days after the receipt of any Net Proceeds from an Asset Sale, other than a
Sale of Collateral, Parent (or the applicable Restricted Subsidiary, as the case may be) may apply
such Net Proceeds:

     (1) to repay the Notes and any other Indebtedness secured by a Lien;

     (2) to repay any other Indebtedness, other than Indebtedness owed to Parent or any of
its Restricted Subsidiaries (subject, in the case of any Indebtedness that is subordinated
to the Notes or any Note Guarantee, to Section 4.07 hereof);

     (3) to acquire all or substantially all of the assets of, or any Capital Stock of,
another Permitted Business, if, after giving effect to any such acquisition of Capital
Stock, the Permitted Business is or becomes a Restricted Subsidiary of Parent or is acquired
by a merger, consolidation or amalgamation with Parent or a Restricted Subsidiary of Parent;

     (4) to make a capital expenditure; or

     (5) to acquire other assets that are used or useful in a Permitted Business;

provided that Parent (or the applicable Restricted Subsidiary, as the case may be) will be deemed
to have complied with the provision described in clauses (3), (4) and (5) of this Section 4.10(b)
if and to the extent that, within 365 days after the Asset Sale that generated the Net Proceeds,
Parent (or the applicable Restricted Subsidiary, as the case may be) has entered into and not
abandoned or rejected a binding agreement to acquire a Permitted Business, make a capital
expenditure or acquire other assets used or useful in a Permitted Business in compliance with the
provision described in clauses (3), (4) and (5) of this Section 4.10(b), and that acquisition,
purchase or capital expenditure is thereafter completed within 180 days after the end of such
365-day period.

     (c) Pending the final application of any Net Proceeds from an Asset Sale that is not a Sale of
Collateral, Parent (or the applicable Restricted Subsidiary) may temporarily reduce revolving
credit borrowings or otherwise invest the Net Proceeds in any manner that is not prohibited by this
Indenture.

     (d) Any Net Proceeds from Asset Sales that are not applied or invested as provided in clause
(a)(4)(A) or clause (b) of this Section 4.10, together with any such Net Proceeds that are earlier
designated as “Excess Proceeds” by the Company, will constitute “Excess Proceeds.” Within five
Business Days of the date on which the aggregate amount of Excess Proceeds (including any Excess
Proceeds held in the Collateral Proceeds Account, other than any Sale of Collateral Consideration)
exceeds $20.0 million (or earlier if the Company so elects), the Company will make an offer and/or
repay, prepay or redeem, as applicable, to all Holders of Notes and all holders of other Priority
Lien Debt containing provisions similar to those set forth in this Indenture with respect to offers
to purchase (“Other Offer Notes”), and prepay any other Priority Lien Debt requiring repayment or
prepayment (collectively, whether through an offer or a required prepayment, an “Asset Sale
Offer”); provided that the percentage of such Excess Proceeds allocated and offered to the Notes in
such Asset Sale Offer is at least equal to the percentage of the aggregate principal amount of all
Priority Lien Debt represented at such time by the Notes. The offer price in any Asset Sale Offer
will be equal to 100% of the principal amount, plus accrued and unpaid interest and Special
Interest, if any, to the date of purchase, prepayment or

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redemption, subject to the rights of Holders of Notes on the relevant record date to receive
interest due on the relevant interest payment date, and will be payable in cash. If any Excess
Proceeds remain after consummation of an Asset Sale Offer, the Company may use those Excess
Proceeds for any purpose not otherwise prohibited by this Indenture. If the aggregate principal
amount of Notes and Other Offer Notes tendered in such Asset Sale Offer exceeds the amount of
Excess Proceeds (including any Excess Proceeds held in the Collateral Proceeds Account, other than
any Sale of Collateral Consideration) allocated to such Notes and Other Offer Notes in such Asset
Sale Offer, the Trustee will select the Notes and Other Offer Notes to be purchased pro rata based
on the aggregate principal amounts so tendered (with such adjustments as may be deemed appropriate
by the Company so that only Notes in denominations of $2,000, or an integral multiple of $1,000 in
excess thereof, will be purchased). Upon completion of each Asset Sale Offer, the amount of Excess
Proceeds will be reset at zero.

     The Company will comply with the requirements of Rule 14e-1 under the Exchange Act and any
other securities laws and regulations thereunder to the extent such laws and regulations are
applicable in connection with each repurchase of Notes pursuant to a Change of Control Offer, an
Asset Sale Offer or a Sale of Collateral Offer. To the extent that the provisions of any
securities laws or regulations conflict with the provisions of Section 3.10 hereof or this Section
4.10, the Company will comply with the applicable securities laws and regulations and will not be
deemed to have breached its obligations under Section 3.10 hereof or this Section 4.10 by virtue of
such compliance.

     For the avoidance of doubt, the Company’s failure to make an offer for the Notes would
constitute a Default under clause (4) of Section 6.01 hereof and not clause (2).

Section 4.11 Transactions with Affiliates.

     (a) Parent will not, and will not permit any of its Restricted Subsidiaries to, make any
payment to or sell, lease, transfer or otherwise dispose of any of its properties or assets to, or
purchase any property or assets from, or enter into or make or amend any transaction, contract,
agreement, understanding, loan, advance or guarantee with, or for the benefit of, any Affiliate of
Parent (each an “Affiliate Transaction”) involving aggregate payments or consideration in excess of
$15.0 million, unless:

     (1) the Affiliate Transaction is on terms that are not materially less favorable to
Parent or the relevant Restricted Subsidiary than those that would have been obtained in a
comparable transaction by Parent or such Restricted Subsidiary with an unrelated Person; and

     (2) Parent delivers to the Trustee:

     (A) with respect to any Affiliate Transaction or series of related Affiliate
Transactions involving aggregate consideration in excess of $30.0 million, a
resolution of the Board of Directors of Parent set forth in an Officers’ Certificate
certifying that such Affiliate Transaction complies with clause (1) of this Section
4.11(a) and that such Affiliate Transaction has been approved by a majority of the
disinterested members of the Board of Directors of Parent; and

     (B) with respect to any Affiliate Transaction or series of related Affiliate
Transactions involving aggregate consideration in excess of $60.0 million, an
opinion as to the fairness to Parent or such Subsidiary of such Affiliate
Transaction from a financial point of view issued by an accounting, appraisal or
investment banking firm of national standing.

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     (b) The following items will not be deemed to be Affiliate Transactions and, therefore, will
not be subject to the provisions of Section 4.11(a) hereof:

     (1) any employment agreement, employee benefit plan, officer or director
indemnification agreement or any similar arrangement entered into by Parent or any of its
Restricted Subsidiaries in the ordinary course of business and payments pursuant thereto;

     (2) transactions between or among Parent and/or its Restricted Subsidiaries;

     (3) transactions with a Person (other than an Unrestricted Subsidiary of Parent) that
is an Affiliate of Parent solely because Parent owns, directly or through a Restricted
Subsidiary, an Equity Interest in, or controls, such Person;

     (4) payment of reasonable and customary fees, reimbursements of expenses (pursuant to
indemnity arrangements or otherwise) and indemnities provided to or on behalf of officers,
directors, employees or consultants of Parent or any of its Restricted Subsidiaries;

     (5) any issuance of Qualifying Equity Interests to Affiliates of Parent;

     (6) transactions with customers, clients, suppliers or purchasers or sellers of goods
or services in the ordinary course of business or transactions with joint ventures or
Unrestricted Subsidiaries entered into in the ordinary course of business and consistent
with past practice and industry norms;

     (7) Permitted Investments and Restricted Payments that do not violate Section 4.07
hereof;

     (8) loans or advances to employees in the ordinary course of business not to exceed
$7.0 million in the aggregate at any one time outstanding;

     (9) transactions pursuant to agreements or arrangements in effect on the date of this
Indenture or any amendment, modification or supplement thereto or replacement thereof and
any payments made or performance under any agreement as in effect on the date of this
Indenture or any amendment, replacement, extension or renewal thereof (so long as such
agreement as so amended, replaced, extended or renewed is not materially less advantageous,
taken as a whole, to the Holders of Notes than the original agreement as in effect on the
date of this Indenture);

     (10) transactions between or among Parent and/or its Subsidiaries or transactions
between a Receivables Subsidiary and any Person in which the Receivables Subsidiary has an
Investment;

     (11) transactions between or among Parent and/or its Restricted Subsidiaries in
connection with any full or partial “spin-off” or similar transactions;

     (12) any transaction effected as part of a Qualified Receivables Transaction; and

     (13) any purchase by Parent’s Affiliates of Indebtedness of Parent or any of its
Restricted Subsidiaries, the majority of which Indebtedness is offered to Persons who are
not Affiliates of Parent.

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Section 4.12 Liens.

     Parent will not, and will not permit any of its Restricted Subsidiaries to, directly or
indirectly create, incur, assume or suffer to exist any Lien of any kind on (a) the Japan Routes,
Japan Slots, Japan Gate Leaseholds, (b) any property or asset that constitutes Collateral now owned
or hereafter acquired, except in both of the foregoing cases Permitted Liens or (c) the Escrow
Account or other Escrow Property (other than pursuant to the Escrow and Security Agreement).

Section 4.13 Business Activities.

     Parent will not, and will not permit any of its Restricted Subsidiaries to, engage in any
business other than Permitted Businesses, except to such extent as would not be material to Parent
and its Restricted Subsidiaries taken as a whole.

Section 4.14 Corporate Existence.

     Parent shall do or cause to be done all things reasonably necessary to preserve and keep in
full force and effect:

     (1) its corporate existence, and the corporate, partnership or other existence of each
of its Restricted Subsidiaries, in accordance with the respective organizational documents
(as the same may be amended from time to time) of Parent or any such Restricted Subsidiary;
and

     (2) the rights (charter and statutory) and material franchises of Parent and its
Restricted Subsidiaries; provided, however, that Parent shall not be required to preserve
any such right or franchise, or the corporate, partnership or other existence of it or any
of its Restricted Subsidiaries, if the Board of Directors shall determine that the
preservation thereof is no longer desirable in the conduct of the business of Parent and its
Subsidiaries, taken as a whole, and that the loss thereof would not, individually or in the
aggregate, have a Material Adverse Effect on Parent and the Guarantors, taken as a whole.

     For the avoidance of doubt, this Section 4.14 shall not prohibit any actions permitted by
Article 5 hereof.

Section 4.15 Offer to Repurchase Upon Change of Control.

     (a) Upon the occurrence of a Change of Control, each Holder of Notes will have the right to
require the Company to repurchase all or any part (equal to $2,000 or an integral multiple of
$1,000 in excess thereof) of that Holder’s Notes pursuant to an
offer (a “Change of Control Offer”)
at a purchase price in cash equal to 101% of the aggregate principal amount of Notes repurchased,
plus accrued and unpaid interest and Special Interest, if any, on the Notes repurchased to the date
of purchase, subject to the rights of Holders of Notes on the relevant record date to receive
interest due on the relevant interest payment date (the “Change of Control Payment”). Within 30
days following any Change of Control, the Company will mail a notice to each Holder describing the
transaction or transactions that constitute the Change of Control and stating:

     (1) that the Change of Control Offer is being made pursuant to this Section 4.15 and
that all Notes tendered will be accepted for payment;

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     (2) the purchase price and the purchase date, which shall be no earlier than 30 days
and no later than 60 days from the date such notice is mailed (the “Change of Control
Payment Date”);

     (3) that any Note not tendered will continue to accrue interest;

     (4) that, unless the Company defaults in the payment of the Change of Control Payment,
all Notes accepted for payment pursuant to the Change of Control Offer will cease to accrue
interest after the Change of Control Payment Date;

     (5) that Holders of Notes electing to have any Notes purchased pursuant to a Change of
Control Offer will be required to surrender the Notes, with the form entitled “Option of
Holder to Elect Purchase” attached to the Notes completed, or transfer by book-entry
transfer, to the Paying Agent at the address specified in the notice prior to the close of
business on the third Business Day preceding the Change of Control Payment Date;

     (6) that Holders of Notes will be entitled to withdraw their election if the Paying
Agent receives, not later than the close of business on the second Business Day preceding
the Change of Control Payment Date, a telegram, telex, facsimile transmission or letter
setting forth the name of the Holder, the principal amount of Notes delivered for purchase,
and a statement that such Holder is withdrawing his election to have the Notes purchased;
and

     (7) that Holders of Notes whose Notes are being purchased only in part will be issued
new Notes equal in principal amount to the unpurchased portion of the Notes surrendered,
which unpurchased portion must be equal to $2,000 in principal amount or an integral
multiple of $1,000 in excess thereof.

     The Company will comply with the requirements of Rule 14e-1 under the Exchange Act and any
other securities laws and regulations thereunder to the extent those laws and regulations are
applicable in connection with the repurchase of the Notes as a result of a Change of Control. To
the extent that the provisions of any securities laws or regulations conflict with the provisions
of this Section 4.15, the Company will comply with the applicable securities laws and regulations
and will not be deemed to have breached its obligations under this Section 4.15 by virtue of such
compliance.

     (b) On the Change of Control Payment Date, the Company will, to the extent lawful:

     (1) accept for payment all Notes or portions of Notes properly tendered pursuant to the
Change of Control Offer;

     (2) deposit with the Paying Agent an amount equal to the Change of Control Payment in
respect of all Notes or portions of Notes properly tendered; and

     (3) deliver or cause to be delivered to the Trustee the Notes properly accepted
together with an Officers’ Certificate stating the aggregate principal amount of Notes or
portions of Notes being purchased by the Company.

     The Paying Agent will promptly mail (but in any case not later than five days after the Change
of Control Payment Date) to each Holder of Notes properly tendered the Change of Control Payment
for such Notes, and the Trustee will promptly authenticate and mail (or cause to be transferred by
book entry) to each Holder a new Note equal in principal amount to any unpurchased portion of the
Notes

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surrendered, if any. The Company will publicly announce the results of the Change of Control
Offer on or as soon as practicable after the Change of Control Payment Date.

     (c) Notwithstanding anything to the contrary in this Section 4.15, the Company will not be
required to make a Change of Control Offer upon a Change of Control if (1) a third party makes the
Change of Control Offer in the manner, at the times and otherwise in compliance with the
requirements set forth in this Section 4.15 hereof and purchases all Notes properly tendered and
not withdrawn under the Change of Control Offer or (2) notice of redemption has been given pursuant
to Section 3.07 hereof, unless and until there is a default in payment of the applicable redemption
price.

     Notwithstanding anything to the contrary contained herein, a Change of Control Offer may be
made in advance of a Change of Control, conditioned upon the consummation of such Change of
Control, if a definitive agreement is in place for the Change of Control at the time the Change of
Control Offer is made.

     For the avoidance of doubt, the Company’s failure to make a Change of Control Offer would
constitute a Default under clause (4) of Section 6.01 hereof and not clause (2).

Section 4.16 Payments for Consent.

     Parent will not, and will not permit any of its Restricted Subsidiaries to, directly or
indirectly, pay or cause to be paid any consideration to or for the benefit of any Holder of Notes
for or as an inducement to any consent, waiver or amendment of any of the terms or provisions of
this Indenture or the Notes unless such consideration is offered to be paid and is paid to all
Holders of Notes that consent, waive or agree to amend in the time frame set forth in the
solicitation documents relating to such consent, waiver or agreement.

Section 4.17 Additional Note Guarantees.

     If any domestic Restricted Subsidiary of Parent (existing on the date of this Indenture or
acquired or created thereafter) becomes a guarantor or a direct obligor with respect to
Indebtedness under the Credit Agreement, then such domestic Restricted Subsidiary will become a
Guarantor and execute a supplemental indenture and deliver an Opinion of Counsel satisfactory to
the Trustee within 30 Business Days of the date on which it became a guarantor or a direct obligor
with respect to Indebtedness under the Credit Agreement.

Section 4.18 Designation of Restricted and Unrestricted Subsidiaries.

     The Board of Directors of Parent may designate any Restricted Subsidiary to be an Unrestricted
Subsidiary if that designation would not cause a Default. If a Restricted Subsidiary is designated
as an Unrestricted Subsidiary, the aggregate Fair Market Value of all outstanding Investments owned
by Parent and its Restricted Subsidiaries in the Subsidiary designated as an Unrestricted
Subsidiary will be deemed to be an Investment made as of the time of the designation and will
reduce the amount available for Restricted Payments under Section 4.07 hereof or under one or more
clauses of the definition of “Permitted Investments,” as determined by Parent. That designation
will only be permitted if the Investment would be permitted at that time and if the Restricted
Subsidiary otherwise meets the definition of an “Unrestricted Subsidiary.” The Board of Directors
of Parent may redesignate any Unrestricted Subsidiary to be a Restricted Subsidiary if that
redesignation would not cause a Default.

     Any designation of a Subsidiary of Parent as an Unrestricted Subsidiary will be evidenced to
the Trustee by filing with the Trustee a certified copy of a resolution of the Board of Directors
giving effect to such designation and an Officers’ Certificate certifying that such designation
complied with the

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preceding conditions and was permitted by Section 4.07 hereof. If, at any time, any
Unrestricted Subsidiary would fail to meet the preceding requirements as an Unrestricted
Subsidiary, it will thereafter cease to be an Unrestricted Subsidiary for purposes of this
Indenture and any Indebtedness of such Subsidiary will be deemed to be incurred by a Restricted
Subsidiary of Parent as of such date and, if such Indebtedness is not permitted to be incurred as
of such date under Section 4.09 hereof, Parent will be in default of such covenant. The Board of
Directors of Parent may at any time designate any Unrestricted Subsidiary to be a Restricted
Subsidiary of Parent; provided that such designation will be deemed to be an incurrence of
Indebtedness by a Restricted Subsidiary of Parent of any outstanding Indebtedness of such
Unrestricted Subsidiary and such designation will only be permitted if (a) such Indebtedness is
permitted under Section 4.09 hereof, calculated on a pro forma basis as if such designation had
occurred at the beginning of the applicable reference period and (b) no Default or Event of Default
would be in existence following such designation.

Section 4.19 Delivery of Appraisals.

     On:

     (1) the date that is no later than 30 days prior to each six-month anniversary of the
date of this Indenture;

     (2) the date upon which any Qualified Replacement Assets or Cure Collateral is pledged
as Collateral to the Collateral Trustee to secure Secured Debt Obligations, but only with
respect to such Qualified Replacement Assets or Cure Collateral; and

     (3) promptly (but in any event within 30 days) following a request by the Trustee or
the Collateral Trustee if an Event of Default has occurred and is continuing,

the Company will deliver to the Trustee and the Collateral Trustee one or more Appraisals
establishing the Appraised Value of the Collateral. The Company will make copies of these
Appraisals available on a private, restricted website to which the Trustee, Holders of Notes,
prospective investors, broker-dealers and securities analysts are given access, subject to such
individuals agreeing to confidentiality obligations reasonably acceptable to the Company for
securities law purposes.

     In addition to clauses (1) through (3) above, the Company will deliver to the Trustee and the
Collateral Trustee a copy of any Appraisal that is delivered to any other Secured Debt
Representative or other holder of Secured Debt Obligations, but has not been or is not being
delivered to the Trustee in accordance with clauses (1) through (3) above, within 10 Business Days
of the date on which such Appraisal was given to such other Secured Debt Representative or holder
of Secured Debt Obligations.

Section 4.20 Priority Lien Debt Value Ratio.

     Within 10 Business Days after the end of each fiscal quarter of the Company, beginning with
the first fiscal quarter ending after the Release Date (the last day of each such fiscal quarter
being a “Reference Date”), the Company will deliver to the Trustee and the Collateral Trustee an
Officers’ Certificate demonstrating, with reasonable detail, the calculation of the Priority Lien
Debt Value Ratio as of the applicable Reference Date.

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     If:

     (1) the Company fails to deliver the Officers’ Certificate required by the preceding
paragraph within the time period specified in such paragraph or any required Appraisal
referred to in Section 4.19 hereof, or

     (2) such Appraisal or such Officers’ Certificate demonstrates that the Priority Lien
Debt Value Ratio was less than 1.5 to 1.0 as of the applicable Reference Date,

then the Company will pay Special Interest commencing on the earlier of (A) the date the Company
delivers an Appraisal or an Officers’ Certificate demonstrating that its Priority Lien Debt Value
Ratio was less than 1.5 to 1.0, or (B) the date on which the Company was required to deliver such
Appraisal or such Officers’ Certificate, and continuing until the Company delivers to the Trustee
and the Collateral Trustee an Appraisal and an Officers’ Certificate demonstrating, with reasonably
detailed calculations, that the Company’s Priority Lien Debt Value Ratio was at least 1.5 to 1.0 as
of a date subsequent to the applicable Reference Date.

     If the Company’s Priority Lien Debt Value Ratio is less than 1.5 to 1.0 on any Reference Date,
the Company may, within 45 days after such Reference Date:

     (1) grant a Secured Debt Lien on additional assets pledged as Cure Collateral under the
Security Documents to secure Priority Lien Obligations and Junior Lien Obligations and such
Cure Collateral will be included in the calculation of Appraised Value as of such Reference
Date; and/or

     (2) redeem, repay, prepay, repurchase or otherwise retire Priority Lien Debt, including
by redeeming Notes pursuant to Section 3.07 hereof and such redeemed, repaid, prepaid,
repurchased or otherwise retired Priority Lien Debt will not be included in the calculation
of the Priority Lien Debt Value Ratio as of such Reference Date.

     If, after the pledge of Cure Collateral and/or any redemption, repayment, prepayment,
repurchase or other retirement of Priority Lien Debt contemplated by the preceding paragraph and
the recalculations of the Priority Lien Debt Value Ratio pursuant to the preceding paragraph, the
Company’s Priority Lien Debt Value Ratio as of the applicable Reference Date would have been at
least 1.5 to 1.0, then the Company will be deemed to have a Priority Lien Debt Value Ratio of at
least 1.5 to 1.0 as of such Reference Date, and no Special Interest will accrue with respect to
such Reference Date.

     Notwithstanding anything herein to the contrary, the Company’s failure to maintain a Priority
Lien Debt Value Ratio in excess of 1.5 to 1.0 will not be deemed to constitute an Event of Default
for purposes of clause (4) under Section 6.01 hereof. For the avoidance of doubt, the Company’s
failure to deliver any Appraisal required by Section 4.19 hereof will be deemed to constitute a
default for purposes of clause (4) under Section 6.01 hereof. The Company may not pledge
additional assets as Cure Collateral except as provided in this Section 4.20, in Section 4.21
hereof and pursuant to clause (7) under Section 4.1(a) of the Collateral Trust Agreement.

Section 4.21 Priority Lien Debt Value Ratio Maintenance.

     The Company will not permit the Priority Lien Debt Value Ratio, as calculated in the Officers’
Certificate delivered to the Trustee and the Collateral Trustee pursuant to the first paragraph of
Section 4.20 hereof, to be less than 1.25 to 1.0 on any Reference Date.

     If the Company’s Priority Lien Debt Value Ratio is less than 1.25 to 1.0 on any Reference
Date, the Company may, within 100 days after such Reference Date (a) grant a Secured Debt Lien on
additional

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assets pledged as Cure Collateral under the Security Documents to secure Priority Lien
Obligations and Junior Lien Obligations and such Cure Collateral will be included in the
calculation of Appraised Value as of such Reference Date and/or (b) redeem, repay, prepay,
repurchase or otherwise retire Priority Lien Debt, including by redeeming Notes pursuant to Section
3.07 hereof and such redeemed, repaid, prepaid, repurchased or otherwise retired Priority Lien Debt
will not be included in the calculation of the Priority Lien Debt Value Ratio as of such Reference
Date.

     If, after the pledge of Cure Collateral and/or any redemption, repayment, prepayment,
repurchase or other retirement of Priority Lien Debt contemplated by the preceding paragraph and
the recalculations of the Priority Lien Debt Value Ratio pursuant to the preceding paragraph, the
Company’s Priority Lien Debt Value Ratio as of the applicable Reference Date would have been at
least 1.25 to 1.0, then the Company will be deemed to have a Priority Lien Debt Value Ratio of at
least 1.25 to 1.0 as of such Reference Date.

     Notwithstanding anything herein to the contrary, the Company’s failure to maintain a Priority
Lien Debt Value Ratio equal to or greater than 1.25 to 1.0 (subject to the cure provisions
described above) will be deemed to constitute a default for purposes of clause (4) under Section
6.01 hereof. The Company may not pledge additional assets as Cure Collateral except as provided in
this Section 4.21, in Section 4.20 hereof and pursuant to clause (7) under Section 4.1(a) of the
Collateral Trust Agreement.

Section 4.22 Regulatory Cooperation.

     In connection with any foreclosure, collection, sale or other enforcement of Liens granted to
the Collateral Trustee in the Security Documents, Parent will, and will cause its Restricted
Subsidiaries to, reasonably cooperate in good faith with the Collateral Trustee or its designee in
obtaining all regulatory licenses, consents and other governmental approvals necessary or (in the
reasonable opinion of the Collateral Trustee or its designee) reasonably advisable to conduct all
aviation operations with respect to the Collateral and will, at the reasonable request of the
Collateral Trustee and in good faith, continue to operate and manage the Collateral and maintain
all applicable regulatory licenses with respect to the Collateral until such time as the Collateral
Trustee or its designee obtain such licenses, consents and approvals, and at such time Parent will,
and will cause its Restricted Subsidiaries to, cooperate in good faith with the transition of the
aviation operations with respect to the Collateral to any new aviation operator (including, without
limitation, the Collateral Trustee or its designee).

Section 4.23 Regulatory Matters; Citizenship; Utilization; Reporting.

     (a) So long as any of the Notes remain outstanding, the Company will:

     (1) maintain at all times its status as an “air carrier” within the meaning of Section
40102(a)(2) of Title 49, and hold a certificate under Section 41102(a)(1) of Title 49;

     (2) be a United States Citizen;

     (3) maintain at all times its status at the FAA as an “air carrier” and hold an air
carrier operating certificate under Section 44705 of Title 49 and operations specifications
issued by the FAA pursuant to Parts 119 and 121 of Title 14 as currently in effect or as may
be amended or recodified from time to time;

     (4) possess and maintain all necessary certificates, exemptions, franchises, licenses,
permits, designations, rights, concessions, authorizations, frequencies and consents that
are material to the operation of the Japan Routes, the Japan Route FAA Slots and Japan Route

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Foreign Slots flown by it, and to the conduct of its business and operations as
currently conducted, except to the extent that any failure to possess or maintain would not
reasonably be expected to result in a Material Adverse Effect;

     (5) maintain Japan Gate Leaseholds sufficient to ensure its ability to retain its right
in and to the Japan Routes and to preserve its right in and to the Japan Route Foreign Slots
and the Japan Route FAA Slots, except to the extent that any failure to maintain would not
reasonably be expected to result in a Material Adverse Effect;

     (6) utilize the Japan Route FAA Slots in a manner consistent with applicable
regulations, rules, law and contracts in order to preserve its right to hold and use the
Japan Route FAA Slots, taking into account any waivers or other relief granted to the
Company by the FAA, or other applicable Governmental Authority or Airport Authority, except
to the extent that any failure to utilize would not reasonably be expected to result in a
Material Adverse Effect;

     (7) cause to be done all things reasonably necessary to preserve and keep in full force
and effect its rights in and to use the Japan Route FAA Slots, including, without
limitation, satisfying any applicable Use or Lose Rule, except to the extent that any
failure to do so would not reasonably be expected to result in a Material Adverse Effect;

     (8) utilize the Japan Route Foreign Slots in a manner consistent with applicable
regulations, rules, foreign law and contracts in order to preserve its right to hold and use
the Japan Route Foreign Slots, taking into account any waivers or other relief granted to
the Company by any applicable Foreign Aviation Authorities, except to the extent that any
failure to utilize would not reasonably be expected to result in a Material Adverse Effect;

     (9) cause to be done all things reasonably necessary to preserve and keep in full force
and effect its rights in and to use the Japan Route Foreign Slots, including, without
limitation, satisfying any applicable Use or Lose Rule, except to the extent that any
failure to do so would not reasonably be expected to result in a Material Adverse Effect;

     (10) utilize the Japan Routes in a manner consistent with Title 49, applicable foreign
law, the applicable rules and regulations of the FAA, DOT and any applicable Foreign
Aviation Authorities, and any applicable treaty in order to preserve its rights to hold and
operate the Japan Routes, except to the extent that any failure to utilize would not
reasonably be expected to result in a Material Adverse Effect; and

     (11) cause to be done all things reasonably necessary to preserve and keep in full
force and effect its authority to serve the Japan Routes, except to the extent that any
failure to do so would not reasonably be expected to result in a Material Adverse Effect.

     (b) Without in any way limiting Section 4.23(a) hereof, the Company will promptly take (1) all
such steps as may be reasonably necessary to obtain renewal of its authority to serve the Japan
Routes from the DOT and any applicable Foreign Aviation Authorities within a reasonable time prior
to the expiration of such authority (as prescribed by law or regulation, if any), and notify the
Collateral Trustee of the status of such renewal and (2) all such other steps as may be necessary
to maintain, renew and obtain Japan Gate Leaseholds as needed for the continued and future
operations of the Company over the Japan Routes. The Company will further take all actions
reasonably necessary or, in the reasonable judgment of the Collateral Trustee, advisable in order
to maintain its material rights to use the Japan Routes (including, without limitation, protecting
the Japan Routes from dormancy or withdrawal by the DOT or any applicable Foreign Aviation
Authorities) and to have access to the Japan Gate Leaseholds.

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The Company will pay any applicable filing fees and other expenses related to the submission
of applications, renewal requests, and other filings as may be reasonably necessary to maintain or
obtain the Company’s rights in the Japan Routes and have access to the Japan Gate Leaseholds.

Section 4.24 Collateral Ownership.

     Subject to the provisions described under Sections 4.10 and 5.01 hereof and the definition of
“Asset Sale,” the Company will continue to maintain its interest in and right to use the Japan
Routes, Japan Slots, Japan Gate Leaseholds and all property and assets that constitute Collateral.
Notwithstanding anything herein to the contrary, the Company will not sell, lease, convey, transfer
or otherwise dispose of the Japan Routes.

Section 4.25 Insurance.

     The Company will:

     (1) keep all Collateral insured at all times, against such risks, including fire and
other risks insured against by extended coverage, as is prudent and customary with
U.S.-based companies of the same or similar size in the same or similar businesses;

     (2) maintain in full force and effect public liability insurance against claims for
personal injury or death or property damage occurring upon, in, about or in connection with
the use of the Collateral owned, occupied or controlled by the Company, in such amounts and
with such deductibles as are prudent and customary with U.S.-based companies of the same or
similar size in the same or similar businesses and in the same geographic area;

     (3) maintain such other insurance or self insurance as may be required by law; and

     (4) maintain business interruption insurance in amounts and on terms as are customary
in the U.S. domestic airline industry for major U.S. air carriers having both substantial
domestic and international operations.

Section 4.26 Note Calculations.

     The Company will be responsible for making calculations called for under the terms of the
Notes. These calculations include, but are not limited to, determination of redemption price
(including premiums or Applicable Premium, if any), Special Interest, and original issue discount,
if any. The Company will make the calculations in good faith and, absent manifest error, its
calculations will be final and binding on the Holders of Notes. The Company will provide a
schedule of its calculations to the Trustee when applicable, and the Trustee is entitled to rely
conclusively on the accuracy of the Company’s calculations without independent verification.

ARTICLE 5

SUCCESSORS

Section 5.01 Merger, Consolidation, or Sale of Assets.

     (a) Parent and the Company shall not, directly or indirectly: (i) consolidate or merge with or
into another Person (whether or not Parent or the Company is the surviving corporation) or (ii)
sell, assign, transfer, convey or otherwise dispose of all or substantially all of the properties
or assets of either:

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(x) Parent and its Restricted Subsidiaries taken as a whole or (y) the Company and its
Restricted Subsidiaries taken as a whole, in one or more related transactions, to another Person,
unless:

     (1) either:

     (A) Parent or the Company is the surviving corporation; or

     (B) the Person formed by or surviving any such consolidation or merger (if
other than Parent or the Company) or to which such sale, assignment, transfer,
conveyance or other disposition has been made is an entity organized or existing
under the laws of the United States, any state of the United States or the District
of Columbia; and, if such entity is not a corporation, a co-obligor of the Notes is
a corporation organized or existing under any such laws;

     (2) the Person formed by or surviving any such consolidation or merger (if other than
Parent or the Company) or the Person to which such sale, assignment, transfer, conveyance or
other disposition has been made assumes all the obligations of Parent and the Company under
the Notes, this Indenture, the Security Documents and the Escrow and Security Agreement
pursuant to agreements reasonably satisfactory to the Trustee, the Collateral Trustee and
the Escrow Agent, as applicable;

     (3) immediately after such transaction, no Default or Event of Default exists; and

     (4) the Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that such consolidation, merger or transfer and such
supplemental indenture (if any) complies with this Indenture.

     In addition, each of Parent and the Company will not, directly or indirectly, lease all or
substantially all of the properties and assets of (i) Parent and its Restricted Subsidiaries taken
as a whole, or (ii) the Company and its Restricted Subsidiaries taken as a whole, in one or more
related transactions, to any other Person.

     (b) Section 5.01(a) will not apply to any sale, assignment, transfer, conveyance, lease or
other disposition of assets between or among Parent and its Restricted Subsidiaries. Clause (3) of
Section 5.01(a) will not apply to any merger, consolidation or transfer of assets:

     (1) of Parent or the Company with or into one of Parent’s Restricted Subsidiaries for
any purpose;

     (2) among the Guarantors or by a Restricted Subsidiary that is not a Guarantor; or

     (3) with or into an Affiliate solely for the purpose of reincorporating Parent or the
Company in another jurisdiction.

Section 5.02 Successor Corporation Substituted.

     Upon any consolidation or merger, or any sale, assignment, transfer, lease, conveyance or
other disposition of all or substantially all of the properties or assets of Parent or the Company
in a transaction that is subject to, and that complies with the provisions of, Section 5.01 hereof,
the successor Person formed by such consolidation or into or with which Parent or the Company is
merged or to which such sale, assignment, transfer, lease, conveyance or other disposition is made
shall succeed to, and be

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substituted for (so that from and after the date of such consolidation, merger, sale,
assignment, transfer, lease, conveyance or other disposition, the provisions of this Indenture
referring to “Parent” or the “Company,” as applicable, shall refer instead to the successor Person
and not to Parent or the Company, as applicable), and may exercise every right and power of Parent
or the Company, as applicable, under this Indenture with the same effect as if such successor
Person had been named as Parent or the Company, as applicable, herein; provided, however, that the
predecessor Company, if applicable, shall not be relieved from the obligation to pay the principal
of, and premium, if any, interest and Special Interest, if any, on the Notes except in the case of
a sale of all of the Company’s assets in a transaction that is subject to, and that complies with
the provisions of, Section 5.01 hereof.

ARTICLE 6

DEFAULTS AND REMEDIES

Section 6.01 Events of Default.

     Each of the following is an “Event of Default:”

     (1) default for 30 days in the payment when due of interest (including Special
Interest, if any) on the Notes;

     (2) default in the payment when due (at maturity, upon redemption or otherwise) of the
principal of, or premium, if any, on, the Notes;

     (3) failure by Parent or any of its Restricted Subsidiaries to comply with the
provisions of Section 5.01 hereof;

     (4) failure by Parent or any of its Restricted Subsidiaries for 60 consecutive days
after notice to the Company by the Trustee or the Holders of at least 25% in aggregate
principal amount of the Notes then outstanding voting as a single class to comply with any
of the other agreements in the Note Documents or the Security Documents (including, without
limitation, the provisions described in Section 4.10 hereof);

     (5) any default that results in the acceleration of any Indebtedness under the Credit
Agreement prior to its stated maturity;

     (6) failure by Parent or any of its Restricted Subsidiaries to pay final judgments
entered by a court or courts of competent jurisdiction aggregating in excess of $70.0
million (determined net of amounts covered by insurance policies issued by creditworthy
insurance companies or by third party indemnities or a combination thereof), which judgments
are not paid, discharged or stayed for a period of 60 days;

     (7) at any time prior to the Release Date, the Escrow and Security Agreement or any
Lien purported to be granted thereby on the Escrow Account or the cash, Government
Securities or a mutual fund investing primarily in Government Securities therein is held in
any judicial proceeding to be unenforceable or invalid, in whole or in part, or ceases for
any reason to be fully enforceable and perfected (other than as a result of the action or
inaction of the Escrow Agent or Collateral Trustee);

     (8) at any time following the Release Date: (A) any Security Document ceases to be in
full force and effect (except as permitted by the terms of this Indenture or the Security
Documents or other than as a result of the action or inaction of the Collateral Trustee or
the

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Secured Party Representatives) for a period of 60 consecutive days after the Company
receives notice thereof or (B) any of the Security Documents ceases to give the Holders of
Notes a valid, perfected (subject to any Permitted Liens) security interest (except as
permitted by the terms of this Indenture or the Security Documents or other than as a result
of the action or inaction of the Collateral Trustee or the Secured Party Representatives)
for a period of 60 consecutive days after the Company receives notice thereof, in each case
with respect to Collateral having an Appraised Value in excess of $70.0 million in the
aggregate at any time with respect to clauses (A) and (B) above;

     (9) failure by the Company to comply with any material term of the Escrow and Security
Agreement that is not cured within 10 Business Days from the date of written notice provided
by the Escrow Agent;

     (10) except as permitted by this Indenture, any Note Guarantee of Parent or a
Significant Subsidiary is held in any judicial proceeding to be unenforceable or invalid or
ceases for any reason to be in full force and effect, or Parent or any Significant
Subsidiary that is a Guarantor denies or disaffirms in writing its obligations under its
Note Guarantee;

     (11) Parent or any of its Restricted Subsidiaries that is a Significant Subsidiary or
any group of Restricted Subsidiaries of Parent that, taken together, would constitute a
Significant Subsidiary pursuant to or within the meaning of Bankruptcy Law:

     (A) commences a voluntary case,

     (B) consents to the entry of an order for relief against it in an involuntary
case,

     (C) consents to the appointment of a custodian of it or for all or
substantially all of its property,

     (D) makes a general assignment for the benefit of its creditors, or

     (E) generally is not paying its debts as they become due; and

     (12) a court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that:

     (A) is for relief against Parent or any of its Restricted Subsidiaries that is
a Significant Subsidiary or any group of Restricted Subsidiaries of Parent that,
taken together, would constitute a Significant Subsidiary in an involuntary case;

     (B) appoints a custodian of Parent or any of its Restricted Subsidiaries that
is a Significant Subsidiary or any group of Restricted Subsidiaries of Parent that,
taken together, would constitute a Significant Subsidiary or for all or
substantially all of the property of Parent or any of its Restricted Subsidiaries
that is a Significant Subsidiary or any group of Restricted Subsidiaries of Parent
that, taken together, would constitute a Significant Subsidiary; or

     (C) orders the liquidation of Parent or any of its Restricted Subsidiaries that
is a Significant Subsidiary or any group of Restricted Subsidiaries of Parent that,
taken together, would constitute a Significant Subsidiary;

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     and in each case the order or decree remains unstayed and in effect for 60 consecutive days.

Section 6.02 Acceleration.

     In the case of an Event of Default specified in clauses (11) or (12) of Section 6.01 hereof,
with respect to Parent or the Company, all outstanding Notes will become due and payable
immediately without further action or notice. If any other Event of Default occurs and is
continuing, the Trustee or the Holders of at least 25% in aggregate principal amount of the then
outstanding Notes may declare all the Notes to be due and payable immediately.

     Upon any such declaration, the Notes shall become due and payable immediately.

     Holders of a majority in aggregate principal amount of the then outstanding Notes by written
notice to the Trustee may, on behalf of the Holders of all of the Notes, rescind an acceleration
and its consequences hereunder, if the rescission would not conflict with any judgment or decree,
except a continuing Default or Event of Default in the payment of principal of, premium on, if any,
or interest (including Special Interest, if any) on, the Notes.

Section 6.03 Other Remedies.

     If an Event of Default occurs and is continuing, the Trustee may pursue any available remedy
to collect the payment of principal, premium, if any, and interest (including Special Interest, if
any) on the Notes or to enforce the performance of any provision of the Notes or this Indenture.

     The Trustee may maintain a proceeding even if it does not possess any of the Notes or does not
produce any of them in the proceeding. A delay or omission by the Trustee or any Holder in
exercising any right or remedy accruing upon an Event of Default shall not impair the right or
remedy or constitute a waiver of or acquiescence in the Event of Default. All remedies are
cumulative to the extent permitted by law.

Section 6.04 Waiver of Past Defaults.

     Holders of not less than a majority in aggregate principal amount of the then outstanding
Notes by written notice to the Trustee may, on behalf of the Holders of all of the Notes, waive an
existing Default or Event of Default and its consequences hereunder, except a continuing Default or
Event of Default in the payment of the principal of, premium on, if any, or interest (including
Special Interest, if any) on, the Notes (including in connection with an offer to purchase);
provided, however, that the Holders of a majority in aggregate principal amount of the then
outstanding Notes may rescind an acceleration and its consequences, including any related payment
default that resulted from such acceleration, if the rescission would not conflict with any
judgment or decree. Upon any such waiver, such Default shall cease to exist, and any Event of
Default arising therefrom shall be deemed to have been cured for every purpose of this Indenture;
but no such waiver shall extend to any subsequent or other Default or impair any right consequent
thereon.

Section 6.05 Control by Majority.

     Holders of a majority in aggregate principal amount of the then outstanding Notes may direct
the time, method and place of conducting any proceeding for exercising any remedy available to the
Trustee. However, the Trustee may withhold from Holders of Notes notice of any continuing Default
or Event of Default if it determines that withholding notice is in their interest, except a Default
or Event of Default

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relating to the payment of principal of, premium on, if any, and interest (including Special
Interest, if any).

Section 6.06 Limitation on Suits.

     Except to enforce the right to receive payment of principal, premium, if any, or interest
(including Special Interest, if any) when due, no Holder may pursue any remedy with respect to this
Indenture or the Notes unless:

     (1) such Holder has previously given the Trustee written notice that an Event of
Default is continuing;

     (2) Holders of at least 25% in aggregate principal amount of the then outstanding Notes
make a written request to the Trustee to pursue the remedy;

     (3) such Holder or Holders of Notes offer and, if requested, provide to the Trustee
security or indemnity reasonably satisfactory to the Trustee against any loss, liability or
expense;

     (4) the Trustee does not comply with the request within 60 days after receipt of the
request and the offer of security or indemnity; and

     (5) during such 60-day period, Holders of a majority in aggregate principal amount of
the then outstanding Notes do not give the Trustee a direction inconsistent with such
request.

     A Holder may not use this Indenture to prejudice the rights of another Holder or to obtain a
preference or priority over another Holder.

Section 6.07 Rights of Holders of Notes to Receive Payment.

     Notwithstanding any other provision of this Indenture, the right of any Holder to receive
payment of principal, premium, if any, and interest on the Note (including Special Interest, if
any), on or after the respective due dates expressed in the Note (including in connection with an
offer to purchase), or to bring suit for the enforcement of any such payment on or after such
respective dates, shall not be impaired or affected without the consent of such Holder; provided
that a Holder shall not have the right to institute any such suit for the enforcement of payment if
and to the extent that the institution or prosecution thereof or the entry of judgment therein
would, under applicable law, result in the surrender, impairment, waiver or loss of the Lien of
this Indenture upon any property subject to such Lien.

Section 6.08 Collection Suit by Trustee.

     If an Event of Default specified in Section 6.01(1) or (2) hereof occurs and is continuing,
the Trustee is authorized to recover judgment in its own name and as Trustee of an express trust
against the Company for the whole amount of principal of, premium, if any, and interest (including
Special Interest, if any) remaining unpaid on, the Notes and interest (including Special Interest,
if any) on overdue principal and, to the extent lawful, interest and such further amount as shall
be sufficient to cover the costs and expenses of collection, including the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel.

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Section 6.09 Trustee May File Proofs of Claim.

     The Trustee is authorized to file such proofs of claim and other papers or documents as may be
necessary or advisable in order to have the claims of the Trustee (including any claim for the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel) and the Holders of Notes allowed in any judicial proceedings relative to the Company (or
any other obligor upon the Notes), its creditors or its property and shall be entitled and
empowered to collect, receive and distribute any money or other property payable or deliverable on
any such claims and any custodian in any such judicial proceeding is hereby authorized by each
Holder to make such payments to the Trustee, and in the event that the Trustee shall consent to the
making of such payments directly to the Holders of Notes, to pay to the Trustee any amount due to
it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel, and any other amounts due the Trustee under Section 7.06 hereof. To the extent that
the payment of any such compensation, expenses, disbursements and advances of the Trustee, its
agents and counsel, and any other amounts due the Trustee under Section 7.06 hereof out of the
estate in any such proceeding, shall be denied for any reason, payment of the same shall be secured
by a Lien on, and shall be paid out of, any and all distributions, dividends, money, securities and
other properties that the Holders of Notes may be entitled to receive in such proceeding whether in
liquidation or under any plan of reorganization or arrangement or otherwise. Nothing herein
contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on
behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting
the Notes or the rights of any Holder, or to authorize the Trustee to vote in respect of the claim
of any Holder in any such proceeding.

Section 6.10 Priorities.

     If the Trustee collects any money pursuant to this Article 6 or any other money or property
distributable in respect of the obligations of the Company or any Guarantor under this Indenture,
it shall pay out the money in the following order:

     First: to the Trustee, its agents and attorneys for amounts due under Section 7.06
hereof, including payment of all reasonable compensation, out-of-pocket expenses and
liabilities incurred, and all advances made, by the Trustee and the costs and reasonable
out-of-pocket expenses of collection;

     Second: to Holders of Notes for amounts due and unpaid on the Notes for principal,
premium, if any, and interest (including Special Interest, if any), ratably, without
preference or priority of any kind, according to the amounts due and payable on the Notes
for principal, premium, if any and interest (including Special Interest, if any),
respectively; and

     Third: to the Company, the Guarantors, if applicable, or to such party as a court of
competent jurisdiction shall direct.

     The Trustee, upon prior notice to the Company, may fix a record date and payment date for any
payment to Holders of Notes pursuant to this Section 6.10.

Section 6.11 Undertaking for Costs.

     In any suit for the enforcement of any right or remedy under this Indenture or in any suit
against the Trustee for any action taken or omitted by it as a Trustee, 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, against any party litigant in

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the suit, having due regard to the merits and good faith of the claims or defenses made by the
party litigant. This Section 6.11 does not apply to a suit by the Trustee, a suit by a Holder
pursuant to Section 6.07 hereof, or a suit by Holders of more than 10% in aggregate principal
amount of the then outstanding Notes.

ARTICLE 7

TRUSTEE

Section 7.01 Duties of Trustee.

     (a) If an Event of Default has occurred and is continuing, the Trustee will exercise such of
the rights and powers vested in it by this Indenture, and use the same degree of care and skill in
its exercise, as a prudent person would exercise or use under the circumstances in the conduct of
such person’s own affairs.

     (b) Except during the continuance of an Event of Default:

     (1) the duties of the Trustee will be determined solely by the express provisions of
this Indenture and the Trustee need perform only those duties that are specifically set
forth in this Indenture and no others, and no implied covenants or obligations shall be read
into this Indenture against the Trustee; and

     (2) in the absence of bad faith on its part, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Trustee and conforming to the requirements of this
Indenture. However, the Trustee will examine the certificates and opinions to determine
whether or not they conform to the requirements of this Indenture.

     (c) The Trustee may not be relieved from liabilities for its own gross negligent action, its
own gross negligent failure to act, or its own willful misconduct, except that:

     (1) this paragraph does not limit the effect of paragraph (b) of this Section 7.01;

     (2) the Trustee will not be liable for any error of judgment made in good faith by a
Responsible Officer, unless it is proved that the Trustee was grossly negligent in
ascertaining the pertinent facts; and

     (3) the Trustee will not be liable with respect to any action it takes or omits to take
in good faith in accordance with a direction received by it pursuant to Section 6.05 hereof
or in accordance with the direction of a majority in aggregate principal amount of Notes
outstanding relating to the exercise of any right or power of the Trustee under this
Indenture..

     (d) Whether or not therein expressly so provided, every provision of this Indenture that in
any way relates to the Trustee is subject to paragraphs (a), (b) and (c) of this Section 7.01.

     (e) No provision of this Indenture will require the Trustee to expend or risk its own funds or
incur any liability. The Trustee will be under no obligation to exercise any of its rights and
powers under this Indenture at the request or direction of any Holders of Notes, unless such Holder
has offered to the Trustee security and indemnity satisfactory to it against any loss, liability or
expense.

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     (f) The Trustee will not be liable for interest on any money received by it except as the
Trustee may agree in writing with the Company. Money held in trust by the Trustee need not be
segregated from other funds except to the extent required by law.

     (g) The Trustee is hereby authorized to execute the Collateral Trust Agreement, the Escrow and
Security Agreement, and any other Security Document to which it may be a party and perform its
obligations in accordance with their terms, and the rights, privileges, protections, immunities and
benefits given to the Trustee, including, without limitation, its right to be compensated,
reimbursed and indemnified, are extended to the Trustee’s execution and performance of each such
agreement.

Section 7.02 Rights of Trustee.

     Subject to Section 7.01 hereof:

     (a) The Trustee may conclusively rely upon any document believed by it to be genuine and to
have been signed or presented by the proper Person. The Trustee need not investigate any fact or
matter stated in the document.

     (b) Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate
or an Opinion of Counsel or both. The Trustee will not be liable for any action it takes or omits
to take in good faith in reliance on such Officers’ Certificate or Opinion of Counsel. The Trustee
may consult with counsel and the written advice of such counsel or any Opinion of Counsel will be
full and complete authorization and protection from liability in respect of any action taken,
suffered or omitted by it hereunder in good faith and in reliance thereon.

     (c) The Trustee may act through its attorneys and agents and will not be responsible for the
misconduct or negligence of any agent appointed with due care.

     (d) The Trustee will not be liable for any action it takes or omits to take in good faith that
it believes to be authorized or within the rights or powers conferred upon it by this Indenture.

     (e) Unless otherwise specifically provided in this Indenture, any demand, request, direction
or notice from Parent or the Company will be sufficient if signed by an Officer of Parent or the
Company, as applicable.

     (f) The Trustee will be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request or direction of any of the Holders of Notes unless such Holders
of Notes have offered to the Trustee reasonable indemnity or security against the losses,
liabilities and expenses that might be incurred by it in compliance with such request or direction.

Section 7.03 Individual Rights of Trustee.

     The Trustee or any of its Affiliates, each in its individual or any other capacity may become
the owner or pledgee of Notes and may become a creditor of, or otherwise deal with Parent, its
Subsidiaries or any of their respective Affiliates with the same rights it would have if it were
not Trustee or an Affiliate of the Trustee. However, in the event that the Trustee acquires any
conflicting interest it must eliminate such conflict within 90 days, apply to the SEC for
permission to continue as trustee or resign. Any Agent may do the same with like rights and
duties. The Trustee is also subject to Section 7.09 hereof.

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Section 7.04 Trustee’s Disclaimer.

     The Trustee will not be responsible for and makes no representation as to the validity or
adequacy of this Indenture, the Notes, the Note Guarantees, the Security Documents or the
Collateral, it shall not be accountable for the Company’s use of the proceeds from the Notes or any
money paid to the Company or upon the Company’s direction under any provision of this Indenture, it
will not be responsible for the use or application of any money received by any Paying Agent other
than the Trustee, and it will not be responsible for any statement or recital herein or any
statement in the Offering Memorandum, the Notes or any other document in connection with the sale
of the Notes or pursuant to this Indenture other than its certificate of authentication. The
Trustee shall have no responsibility for any act or omission of the Collateral Trustee.

Section 7.05 Notice of Defaults.

     If a Default or Event of Default occurs and is continuing and if it is known to the Trustee,
the Trustee will mail to Holders of Notes a notice of the Default or Event of Default within 90
days after it occurs. Except in the case of a Default or Event of Default in payment of principal
of, premium, if any, or interest (including Special Interest, if any) on, any Note, the Trustee may
withhold the notice if and so long as a committee of its Responsible Officers in good faith
determines that withholding the notice is in the interests of the Holders of Notes.

Section 7.06 Compensation and Indemnity.

     (a) The Company will pay to the Trustee from time to time reasonable compensation for its
acceptance of this Indenture and services hereunder. The Trustee’s compensation will not be
limited by any law on compensation of a trustee of an express trust. The Company will reimburse
the Trustee promptly upon request for all reasonable disbursements, advances and expenses incurred
or made by it in addition to the compensation for its services, except any such disbursements,
expenses and advances as may be attributable to the Trustee’s gross negligence, bad faith or
willful misconduct. Such expenses will include the reasonable compensation, disbursements and
expenses of the Trustee’s agents and counsel.

     (b) The Company and the Guarantors will indemnify the Trustee against any and all losses,
liabilities or expenses incurred by it arising out of or in connection with the acceptance or
administration of its duties under this Indenture, including the costs and expenses of enforcing
this Indenture against the Company and the Guarantors (including this Section 7.06) and defending
itself against any claim (whether asserted by the Company, the Guarantors, any Holder or any other
Person) or liability in connection with the exercise or performance of any of its powers or duties
hereunder, except to the extent any such loss, liability or expense may be attributable to its
gross negligence, bad faith or willful misconduct. The Trustee will notify the Company promptly of
any claim for which it may seek indemnity. Failure by the Trustee to so notify the Company will
not relieve the Company or any of the Guarantors of their obligations hereunder. The Company or
such Guarantor will defend the claim and the Trustee will cooperate in the defense. The Trustee
may have separate counsel and the Company will pay the reasonable fees and expenses of such
counsel. Neither the Company nor any Guarantor need pay for any settlement made without its
consent, which consent will not be unreasonably withheld. The Company and the Guarantors need not
reimburse any expense or indemnify against any loss or liability to the extent incurred by the
Trustee through the Trustee’s gross negligence, bad faith or willful misconduct.

     (c) The obligations of the Company and the Guarantors under this Section 7.06 will survive the
satisfaction and discharge of this Indenture and the resignation or removal of the Trustee.

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     (d) To secure the Company’s and the Guarantors’ payment obligations in this Section 7.06, the
Trustee will have a Lien prior to the Notes on all money or property held or collected by the
Trustee, except that held in trust to pay principal and interest on particular Notes. For the
avoidance of doubt, the Trustee shall not have any individual Lien on, or claim to, the Escrow
Property with respect to the payment obligations in this Section 7.06. Such Lien will survive the
satisfaction and discharge of this Indenture and the resignation or removal of the Trustee.

     (e) When the Trustee incurs expenses or renders services after an Event of Default specified
in Section 6.01(11) or (12) hereof occurs, the expenses and the compensation for the services
(including the fees and expenses of its agents and counsel) are intended to constitute expenses of
administration under any Bankruptcy Law.

Section 7.07 Replacement of Trustee.

     (a) A resignation or removal of the Trustee and appointment of a successor Trustee will become
effective only upon the successor Trustee’s acceptance of appointment as provided in this Section
7.07.

     (b) The Trustee may resign in writing at any time and be discharged from the trust hereby
created by so notifying the Company. The Holders of a majority in aggregate principal amount of
the then outstanding Notes may remove the Trustee by so notifying the Trustee and the Company in
writing. The Company may remove the Trustee if:

     (1) the Trustee fails to comply with Section 7.09 hereof;

     (2) the Trustee is adjudged a bankrupt or an insolvent or an order for relief is
entered with respect to the Trustee under any Bankruptcy Law;

     (3) a receiver or other public officer takes charge of the Trustee or its property; or

     (4) the Trustee becomes incapable of acting.

     (c) If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for
any reason, the Company will promptly appoint a successor Trustee. Within one year after the
successor Trustee takes office, the Holders of a majority in aggregate principal amount of the then
outstanding Notes may appoint a successor Trustee to replace the successor Trustee appointed by the
Company.

     (d) If a successor Trustee does not take office within 60 days after the retiring Trustee
resigns or is removed, the retiring Trustee, the Company, or the Holders of at least 10% in
aggregate principal amount of the then outstanding Notes may petition any court of competent
jurisdiction for the appointment of a successor Trustee.

     (e) If the Trustee, after written request by any Holder who has been a Holder for at least six
months, fails to comply with Section 7.09 hereof, such Holder may petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

     (f) A successor Trustee will deliver a written acceptance of its appointment to the retiring
Trustee and to the Company. Thereupon, the resignation or removal of the retiring Trustee will
become effective, and the successor Trustee will have all the rights, powers and duties of the
Trustee under this Indenture. The successor Trustee will mail a notice of its succession to
Holders of Notes. The retiring Trustee will promptly transfer all property held by it as Trustee
to the successor Trustee; provided all

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sums owing to the Trustee hereunder have been paid and subject to the Lien provided for in
Section 7.06 hereof. Notwithstanding replacement of the Trustee pursuant to this Section 7.07, the
Company’s obligations under Section 7.06 hereof will continue for the benefit of the retiring
Trustee.

Section 7.08 Successor Trustee by Merger, etc.

     If the Trustee consolidates, merges or converts into, or transfers all or substantially all of
its corporate trust business to, another corporation, the successor corporation without any further
act will be the successor Trustee.

Section 7.09 Eligibility; Disqualification.

     There will at all times be a Trustee hereunder that is a corporation organized and doing
business under the laws of the United States of America or of any state thereof that is authorized
under such laws to exercise corporate trustee power, that is subject to supervision or examination
by federal or state authorities and that has a combined capital and surplus of at least $100.0
million as set forth in its most recent published annual report of condition.

ARTICLE 8

LEGAL DEFEASANCE AND COVENANT DEFEASANCE

Section 8.01 Option to Effect Legal Defeasance or Covenant Defeasance.

     The Company may at any time, at the option of its Board of Directors evidenced by a resolution
set forth in an Officers’ Certificate, elect to have either Section 8.02 or 8.03 hereof be applied
to all outstanding Notes upon compliance with the conditions set forth below in this Article 8.

Section 8.02 Legal Defeasance and Discharge.

     Upon the Company’s exercise under Section 8.01 hereof of the option applicable to this Section
8.02, the Company and each of the Guarantors will, subject to the satisfaction of the conditions
set forth in Section 8.04 hereof, be deemed to have been discharged from their obligations with
respect to all outstanding Notes (including the Note Guarantees) on the date the conditions set
forth below are satisfied (hereinafter, “Legal Defeasance”). For this purpose, Legal Defeasance
means that the Company and the Guarantors will be deemed to have paid and discharged the entire
Indebtedness represented by the outstanding Notes (including the Note Guarantees), which will
thereafter be deemed to be “outstanding” only for the purposes of Section 8.05 hereof and the other
Sections of this Indenture referred to in clauses (1) and (2) below, and to have satisfied all
their other obligations under such Notes, the Note Guarantees and this Indenture (and the Trustee,
on demand of and at the expense of the Company, shall execute proper instruments acknowledging the
same), except for the following provisions which will survive until otherwise terminated or
discharged hereunder:

     (1) the rights of Holders of outstanding Notes to receive payments in respect of the
principal of, or interest (including Special Interest, if any) or premium, if any, on, such
Notes when such payments are due from the trust referred to in Section 8.04 hereof;

     (2) the Company’s obligations with respect to such Notes under Article 2 and Section
4.02 hereof;

     (3) the rights, powers, trusts, duties and immunities of the Trustee hereunder and the
Company’s and the Guarantors’ obligations in connection therewith; and

     (4) this Article 8.

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     Subject to compliance with this Article 8, the Company may exercise its option under this
Section 8.02 notwithstanding the prior exercise of its option under Section 8.03 hereof.

Section 8.03 Covenant Defeasance.

     Upon the Company’s exercise under Section 8.01 hereof of the option applicable to this Section
8.03, the Company and each of the Guarantors will, subject to the satisfaction of the conditions
set forth in Section 8.04 hereof, be released from each of their obligations under the covenants
contained in Sections 4.03, 4.04, 4.05, 4.07, 4.08, 4.09, 4.10, 4.11, 4.12, 4.13, 4.15, 4.16, 4.17,
4.18, 4.19, 4.20, 4.21, 4.22, 4.23, 4.24 and 4.25 hereof with respect to the outstanding Notes on
and after the date the conditions set forth in Section 8.04 hereof are satisfied (hereinafter,
“Covenant Defeasance”), and the Notes will thereafter be deemed not “outstanding” for the purposes
of any direction, waiver, consent or declaration or act of Holders of Notes (and the consequences
of any thereof) in connection with such covenants, but will continue to be deemed “outstanding” for
all other purposes hereunder (it being understood that such Notes will not be deemed outstanding
for accounting purposes). For this purpose, Covenant Defeasance means that, with respect to the
outstanding Notes and Note Guarantees, the Company and the Guarantors may omit to comply with and
will have no liability in respect of any term, condition or limitation set forth in any such
covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any such
covenant or by reason of any reference in any such covenant to any other provision herein or in any
other document and such omission to comply will not constitute a Default or an Event of Default
under Section 6.01 hereof, but, except as specified above, the remainder of this Indenture and such
Notes and Note Guarantees will be unaffected thereby. In addition, upon the Company’s exercise
under Section 8.01 hereof of the option applicable to this Section 8.03, subject to the
satisfaction of the conditions set forth in Section 8.04 hereof, Sections 6.01(3) through 6.01(10)
hereof will not constitute Events of Default.

Section 8.04 Conditions to Legal or Covenant Defeasance.

     In order to exercise either Legal Defeasance or Covenant Defeasance under either Section 8.02
or 8.03 hereof:

     (1) the Company must irrevocably deposit with the Trustee, in trust, for the benefit of
the Holders of Notes, cash in U.S. dollars, non-callable Government Securities, or a
combination thereof, in such amounts as will be sufficient, in the opinion of a nationally
recognized investment bank, appraisal firm, or firm of independent public accountants, to
pay the principal of, premium, if any, and interest (including Special Interest, if any) on,
the outstanding Notes on the stated date for payment thereof or on the applicable redemption
date, as the case may be, and the Company must specify whether the Notes are being defeased
to such stated date for payment or to a particular redemption date;

     (2) in the case of Legal Defeasance, the Company must deliver to the Trustee an Opinion
of Counsel confirming that (A) the Company has received from, or there has been published
by, the Internal Revenue Service a ruling or (B) since the date of this Indenture, there has
been a change in the applicable federal income tax law, in either case to the effect that,
and based thereon such Opinion of Counsel will confirm that, the Holders of Notes will not
recognize income, gain or loss for federal income tax purposes as a result of such Legal
Defeasance and will be subject to federal income tax on the same amounts, in the same manner
and at the same times as would have been the case if such Legal Defeasance had not occurred;

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     (3) in the case of Covenant Defeasance, the Company must deliver to the Trustee an
Opinion of Counsel reasonably acceptable to the Trustee confirming that the Holders of Notes
will not recognize income, gain or loss for federal income tax purposes as a result of such
Covenant Defeasance and will be subject to federal income tax on the same amounts, in the
same manner and at the same times as would have been the case if such Covenant Defeasance
had not occurred;

     (4) no Default or Event of Default has occurred and is continuing on the date of such
deposit (other than a Default or Event of Default resulting from the borrowing of funds to
be applied to such deposit (and any similar concurrent deposit relating to other
Indebtedness), and the granting of Liens to secure such borrowings);

     (5) such Legal Defeasance or Covenant Defeasance will not result in a breach or
violation of, or constitute a default under, any material agreement or instrument (other
than this Indenture and the agreements governing any other Indebtedness being defeased,
discharged or replaced) to which the Company or any of the Guarantors is a party or by which
the Company or any of the Guarantors is bound;

     (6) the Company must deliver to the Trustee an Officers’ Certificate stating that the
deposit was not made by the Company with the intent of preferring the Holders of Notes over
the other creditors of the Company with the intent of defeating, hindering, delaying or
defrauding any creditors of the Company or others; and

     (7) the Company must deliver to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent relating to the Legal Defeasance or the
Covenant Defeasance have been complied with.

     Upon a Legal Defeasance or Covenant Defeasance, the Collateral Trustee will cease to be a
party to the Security Documents on behalf of the Holders of Notes and the Collateral will no longer
secure the Notes. The Collateral will be released from the Liens securing the Notes as provided in
the Collateral Trust Agreement.

Section 8.05 Deposited Money and Government Securities to be Held in Trust; Other Miscellaneous
Provisions.

     Subject to Section 8.06 hereof, all money and non-callable Government Securities (including
the proceeds thereof) deposited with the Trustee (or other qualifying trustee, collectively for
purposes of this Section 8.05, the “Trustee”) pursuant to Section 8.04 hereof in respect of the
outstanding Notes will be held in trust and applied by the Trustee, in accordance with the
provisions of such Notes and this Indenture, to the payment, either directly or through any Paying
Agent (including the Company acting as Paying Agent) as the Trustee may determine, to the Holders
of such Notes of all sums due and to become due thereon in respect of principal, premium, if any,
and interest (including Special Interest, if any), but such money need not be segregated from other
funds except to the extent required by law.

     The Company will pay and indemnify the Trustee against any tax, fee or other charge imposed on
or assessed against the cash or non-callable Government Securities deposited pursuant to Section
8.04 hereof or the principal and interest received in respect thereof other than any such tax, fee
or other charge which by law is for the account of the Holders of the outstanding Notes.

     Notwithstanding anything in this Article 8 to the contrary, the Trustee will deliver or pay to
the Company from time to time upon the request of the Company any money or non-callable Government

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Securities held by it as provided in Section 8.04 hereof which, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written certification thereof
delivered to the Trustee (which may be the opinion delivered under Section 8.04(1) hereof), are in
excess of the amount thereof that would then be required to be deposited to effect an equivalent
Legal Defeasance or Covenant Defeasance.

Section 8.06 Repayment to Company.

     Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in
trust for the payment of the principal of, premium, if any, or interest on (including Special
Interest, if any), any Note and remaining unclaimed for two years after such principal, premium, if
any, or interest (including Special Interest, if any) has become due and payable shall be paid to
the Company on its request or (if then held by the Company) will be discharged from such trust; and
the Holder of such Note will thereafter be permitted to look only to the Company for payment
thereof, and all liability of the Trustee or such Paying Agent with respect to such trust money,
and all liability of the Company as trustee thereof, will thereupon cease; provided, however, that
the Trustee or such Paying Agent, before being required to make any such repayment, may at the
expense of the Company cause to be published once, in the New York Times and The Wall Street
Journal (national edition), notice that such money remains unclaimed and that, after a date
specified therein, which will not be less than 30 days from the date of such notification or
publication, any unclaimed balance of such money then remaining will be repaid to the Company.

Section 8.07 Reinstatement.

     If the Trustee or Paying Agent is unable to apply any U.S. dollars or non-callable Government
Securities in accordance with Section 8.02 or 8.03 hereof, as the case may be, by reason of any
order or judgment of any court or governmental authority enjoining, restraining or otherwise
prohibiting such application, then the Company’s and the Guarantors’ obligations under this
Indenture and the Notes and the Note Guarantees will be revived and reinstated as though no deposit
had occurred pursuant to Section 8.02 or 8.03 hereof until such time as the Trustee or Paying Agent
is permitted to apply all such money in accordance with Section 8.02 or 8.03 hereof, as the case
may be; provided, however, that, if the Company makes any payment of principal of, premium, if any,
or interest (including Special Interest, if any) on, any Note following the reinstatement of its
obligations, the Company will be subrogated to the rights of the Holders of such Notes to receive
such payment from the money held by the Trustee or Paying Agent.

ARTICLE 9

AMENDMENT, SUPPLEMENT AND WAIVER

Section 9.01 Without Consent of Holders of Notes.

     Notwithstanding Section 9.02 of this Indenture, the Company, the Guarantors and the Trustee
may amend or supplement this Indenture, the Notes or the Note Guarantees without the consent of any
Holder:

     (1) to cure any ambiguity, defect or inconsistency;

     (2) to provide for uncertificated Notes in addition to or in place of certificated
Notes;

     (3) to provide for the assumption of the Company’s or a Guarantor’s obligations to the
Holders of Notes and Note Guarantees in the case of a merger or consolidation or sale of all
or substantially all of the Company’s or such Guarantor’s assets, as applicable;

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     (4) to make any change that would provide any additional rights or benefits to the
Holders of Notes or that does not adversely affect the legal rights hereunder of any Holder;

     (5) to conform the text of any of the Note Documents to any provision of the
“Description of notes” section of the Offering Memorandum, to the extent that such provision
in that “Description of notes” was intended to be a verbatim recitation of a provision of
such Note Documents, as determined in good faith by an officer of Parent and set forth in an
Officers’ Certificate to that effect;

     (6) to enter into additional or supplemental Security Documents or provide for
additional Collateral;

     (7) to make, complete or confirm any grant of Collateral permitted or required by this
Indenture or any of the Security Documents or to release Collateral in accordance with the
terms of this Indenture and the Security Documents;

     (8) to provide for the issuance of Additional Notes in accordance with the limitations
set forth in this Indenture as of the date of this Indenture; or

     (9) to allow any Guarantor to execute a supplemental indenture and/or a Note Guarantee
with respect to the Notes.

     Upon the request of the Company accompanied by a resolution of its Board of Directors
authorizing the execution of any such amended or supplemental indenture, and upon receipt by the
Trustee of the documents described in Section 7.02 hereof, the Trustee and the Collateral Trustee
will join with the Company and the Guarantors in the execution of any amended or supplemental
indenture authorized or permitted by the terms of this Indenture and to make any further
appropriate agreements and stipulations that may be therein contained, but neither the Trustee nor
the Collateral Trustee will be obligated to enter into such amended or supplemental indenture that
affects its own rights, duties or immunities under this Indenture or otherwise.

Section 9.02 With Consent of Holders of Notes.

     Except as provided below in this Section 9.02, the Company, the Trustee and the Collateral
Trustee may amend or supplement this Indenture (including, without limitation, Sections 3.10, 4.10
and 4.15 hereof), the Notes and the Note Guarantees with the consent of the Company and the Holders
of at least a majority in aggregate principal amount of the then outstanding Notes (including,
without limitation, Additional Notes, if any) voting as a single class (including, without
limitation, consents obtained in connection with a tender offer or exchange offer for, or purchase
of, the Notes), and, subject to Sections 6.04 and 6.07 hereof, any existing Default or Event of
Default (other than a Default or Event of Default in the payment of the principal of, premium, if
any, or interest (including Special Interest, if any) on, the Notes, except a payment default
resulting from an acceleration that has been rescinded) or compliance with any provision of this
Indenture, the Notes or the Note Guarantees may be waived with the consent of the Holders of a
majority in aggregate principal amount of the then outstanding Notes (including, without
limitation, Additional Notes, if any) voting as a single class (including, without limitation,
consents obtained in connection with a tender offer or exchange offer for, or purchase of, the
Notes). Section 2.08 hereof shall determine which Notes are considered to be “outstanding” for
purposes of this Section 9.02.

     Upon the request of the Company accompanied by a resolution of its Board of Directors
authorizing the execution of any such amended or supplemental indenture, and upon the filing with
the

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Trustee and the Collateral Trustee of evidence satisfactory to the Trustee of the consent of
the Holders of Notes as aforesaid, and upon receipt by the Trustee of the documents described in
Section 7.02 hereof, each of the Trustee and the Collateral Trustee will join with the Company and
the Guarantors in the execution of such amended or supplemental indenture unless such amended or
supplemental indenture directly affects the Trustee’s and/or the Collateral Trustee’s own rights,
duties or immunities under this Indenture or otherwise, in which case the Trustee and/or the
Collateral Trustee may in its discretion, but will not be obligated to, enter into such amended or
supplemental Indenture.

     It is not necessary for the consent of the Company or the Holders of Notes under this Section
9.02 to approve the particular form of any proposed amendment, supplement or waiver, but it is
sufficient if such consent approves the substance thereof.

     After an amendment, supplement or waiver under this Section 9.02 becomes effective, the
Company will mail to the Holders of Notes affected thereby a notice briefly describing the
amendment, supplement or waiver. Any failure of the Company to mail such notice, or any defect
therein, will not, however, in any way impair or affect the validity of any such amended or
supplemental indenture or waiver. Subject to Sections 6.04 and 6.07 hereof, the Holders of a
majority in aggregate principal amount of the Notes then outstanding voting as a single class may
waive compliance in a particular instance by the Company with any provision of this Indenture, the
Notes or the Note Guarantees. However, without the consent of each Holder affected, an amendment,
supplement or waiver under this Section 9.02 may not (with respect to any Notes held by a
non-consenting Holder):

     (1) reduce the principal amount of Notes whose Holders must consent to an amendment,
supplement or waiver;

     (2) reduce the principal of or change the fixed maturity of any Note or alter or waive
any of the provisions with respect to the redemption of the Notes (except as provided above
with respect to Sections 3.10, 4.10 and 4.15 hereof), including, without limitation, the
provisions relating to the Company’s Special Scheduled Maturity Date obligation described in
Section 3.09 hereof;

     (3) reduce the rate of or change the time for payment of interest, including default
interest, on any Note;

     (4) waive a Default or Event of Default in the payment of principal of, or premium, if
any, or interest (including Special Interest, if any) on, the Notes (except a rescission of
acceleration of the Notes by the Holders of at least a majority in aggregate principal
amount of the then outstanding Notes and a waiver of the payment default that resulted from
such acceleration);

     (5) make any Note payable in money other than that stated in the Notes;

     (6) make any change in the provisions of this Indenture relating to waivers of past
Defaults or the rights of Holders of Notes to receive payments of principal of, premium on,
if any, or interest (including Special Interest, if any) on, the Notes;

     (7) waive a redemption payment with respect to any Note (other than a payment required
by Sections 3.10, 4.10 or 4.15 hereof);

     (8) release any Guarantor from any of its obligations under its Note Guarantee or this
Indenture, except in accordance with the terms of this Indenture;

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     (9) make any change to any of the Escrow Conditions; or

     (10) make any change in the preceding amendment and waiver provisions.

     Any amendment to, or waiver of, the provisions of this Indenture or any Security Document that
has the effect of releasing all or substantially all of the Collateral from the Liens securing the
Notes will require the consent of holders of at least 75% in aggregate principal amount of Notes
then outstanding.

Section 9.03 Revocation and Effect of Consents.

     Until an amendment, supplement or waiver becomes effective, a consent to it by a Holder of a
Note is a continuing consent by the Holder of a Note and every subsequent Holder of a Note or
portion of a Note that evidences the same debt as the consenting Holder’s Note, even if notation of
the consent is not made on any Note. However, any such Holder of a Note or subsequent Holder of a
Note may revoke the consent as to its Note if the Trustee receives written notice of revocation
before the date the amendment, supplement or waiver becomes effective. An amendment, supplement or
waiver becomes effective in accordance with its terms and thereafter binds every Holder.

Section 9.04 Notation on or Exchange of Notes.

     The Trustee may place an appropriate notation about an amendment, supplement or waiver on any
Note thereafter authenticated. The Company in exchange for all Notes may issue and the Trustee
shall, upon receipt of an Authentication Order, authenticate new Notes that reflect the amendment,
supplement or waiver.

     Failure to make the appropriate notation or issue a new Note will not affect the validity and
effect of such amendment, supplement or waiver.

Section 9.05 Trustee to Sign Amendments, etc.

     Each of the Trustee and the Collateral Trustee will sign any amended or supplemental indenture
authorized pursuant to this Article 9 if the amendment or supplement does not adversely affect the
rights, duties, liabilities or immunities of the Trustee and the Collateral Trustee. The Company
may not sign an amended or supplemental indenture until the Board of Directors of the Company
approves it. In executing any amended or supplemental indenture, each of the Trustee and the
Collateral Trustee will be entitled to receive and (subject to Section 7.01 hereof) will be fully
protected in relying upon, in addition to the documents required by Section 13.02 hereof, an
Officers’ Certificate and an Opinion of Counsel stating that the execution of such amended or
supplemental indenture is authorized or permitted by this Indenture.

ARTICLE 10

NOTE GUARANTEES

Section 10.01 Guarantee.

     (a) Subject to the provisions of this Article 10, each of the Guarantors hereby, jointly and
severally, unconditionally guarantees to each Holder of a Note authenticated and delivered by the
Trustee and to the Trustee and its successors and assigns, irrespective of the validity and
enforceability of this Indenture, the Notes or the obligations of the Company hereunder or
thereunder, that:

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     (1) the principal of, premium, if any, and interest on (including Special Interest, if
any), the Notes will be promptly paid in full when due, whether at maturity, by
acceleration, redemption or otherwise, and interest on the overdue principal of, premium, if
any, and interest (including Special Interest, if any) on the Notes, if any, if lawful, and
all other obligations of the Company to the Holders of Notes or the Trustee hereunder or
thereunder will be promptly paid in full or performed, all in accordance with the terms
hereof and thereof; and

     (2) in case of any extension of time of payment or renewal of any Notes or any of such
other obligations, that same will be promptly paid in full when due or performed in
accordance with the terms of the extension or renewal, whether at Stated Maturity, by
acceleration or otherwise.

     Failing payment when due of any amount so guaranteed or any performance so guaranteed for
whatever reason, the Guarantors will be jointly and severally obligated to pay the same
immediately. Each Guarantor agrees that this is a guarantee of payment and not a guarantee of
collection.

     (b) The Guarantors hereby agree that their obligations hereunder are unconditional,
irrespective of the validity, regularity or enforceability of the Notes or this Indenture, the
absence of any action to enforce the same, any waiver or consent by any Holder with respect to any
provisions hereof or thereof, the recovery of any judgment against the Company, any action to
enforce the same or any other circumstance which might otherwise constitute a legal or equitable
discharge or defense of a guarantor. Each Guarantor hereby waives diligence, presentment, demand
of payment, filing of claims with a court in the event of insolvency or bankruptcy of the Company,
any right to require a proceeding first against the Company, protest, notice and all demands
whatsoever and covenant that this Note Guarantee will not be discharged except by complete
performance of the obligations contained in the Notes and this Indenture.

     (c) If any Holder or the Trustee is required by any court or otherwise to return to the
Company, the Guarantors or any custodian, trustee, liquidator or other similar official acting in
relation to either the Company or the Guarantors, any amount paid by either to the Trustee or such
Holder, this Note Guarantee, to the extent theretofore discharged, will be reinstated in full force
and effect.

     (d) Each Guarantor agrees that it will not be entitled to any right of subrogation in relation
to the Holders of Notes in respect of any obligations guaranteed hereby until payment in full of
all obligations (other than contingent obligations) guaranteed hereby. Each Guarantor further
agrees that, as between the Guarantors, on the one hand, and the Holders of Notes and the Trustee,
on the other hand, (1) the maturity of the obligations guaranteed hereby may be accelerated as
provided in Article 6 hereof for the purposes of this Note Guarantee, notwithstanding any stay,
injunction or other prohibition preventing such acceleration in respect of the obligations
guaranteed hereby, and (2) in the event of any declaration of acceleration of such obligations as
provided in Article 6 hereof, such obligations (whether or not due and payable) will forthwith
become due and payable by the Guarantors for the purpose of this Note Guarantee. The Guarantors
will have the right to seek contribution from any non-paying Guarantor so long as the exercise of
such right does not impair the rights of the Holders of Notes under the Note Guarantee.

Section 10.02 Limitation on Guarantor Liability.

     Each Guarantor, and by its acceptance of Notes, each Holder, hereby confirms that it is the
intention of all such parties that the Note Guarantee of such Guarantor not constitute a fraudulent
transfer or conveyance for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the
Uniform Fraudulent Transfer Act or any similar federal or state law to the extent applicable to any
Note Guarantee.

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To effectuate the foregoing intention, the Trustee, the Holders of Notes and the Guarantors
hereby irrevocably agree that the obligations of such Guarantor will be limited to the maximum
amount that will, after giving effect to such maximum amount and all other contingent and fixed
liabilities of such Guarantor that are relevant under such laws, and after giving effect to any
collections from, rights to receive contribution from or payments made by or on behalf of any other
Guarantor in respect of the obligations of such other Guarantor under this Article 10, result in
the obligations of such Guarantor under its Note Guarantee not constituting a fraudulent transfer
or conveyance. Each Guarantor that makes a payment for distribution under its Note Guarantee is
entitled to a contribution from each other Guarantor in a pro rata amount based on the adjusted net
assets of each Guarantor.

Section 10.03 Execution and Delivery of Note Guarantee.

     To evidence its Note Guarantee set forth in Section 10.01 hereof, each Guarantor hereby agrees
that a notation of such Note Guarantee substantially in the form attached as Exhibit E hereto will
be endorsed by an Officer of such Guarantor on each Note authenticated and delivered by the Trustee
and that this Indenture will be executed on behalf of such Guarantor by one of its Officers.

     Each Guarantor hereby agrees that its Note Guarantee set forth in Section 10.01 hereof will
remain in full force and effect notwithstanding any failure to endorse on each Note a notation of
such Note Guarantee.

     If an Officer whose signature is on this Indenture or on the Note Guarantee no longer holds
that office at the time the Trustee authenticates the Note on which a Note Guarantee is endorsed,
the Note Guarantee will be valid nevertheless.

     The delivery of any Note by the Trustee, after the authentication thereof hereunder, will
constitute due delivery of the Note Guarantee set forth in this Indenture on behalf of the
Guarantors.

     In the event that any domestic Subsidiary of Parent (existing on the date of this Indenture or
acquired or created thereafter) becomes a guarantor or a direct obligor with respect to
Indebtedness under the Credit Agreement, if required by Section 4.17 hereof, Parent will cause such
domestic Subsidiary to comply with the provisions of Section 4.17 hereof and this Article 10, to
the extent applicable.

Section 10.04 Guarantors May Consolidate, etc., on Certain Terms.

     Except as otherwise provided in Section 10.05 hereof, no Subsidiary Guarantor may sell or
otherwise dispose of all or substantially all of its assets to, or consolidate with or merge with
or into (whether or not such Subsidiary Guarantor is the surviving Person) another Person, other
than the Company or another Guarantor, unless either:

     (1) subject to Section 10.05 hereof, the Person acquiring the property in any such sale
or disposition or the Person formed by or surviving any such consolidation or merger
unconditionally assumes all the obligations of that Subsidiary Guarantor under the Note
Guarantees and the Notes Documents on the terms set forth herein or therein, pursuant to a
supplemental indenture in form and substance reasonably satisfactory to the Trustee and the
Collateral Trustee; or

     (2) the Net Proceeds of such sale or other disposition, if any, are applied in
accordance with the applicable provisions of this Indenture, including without limitation,
Section 4.10 hereof.

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     In case of any such consolidation, merger, sale or conveyance and upon the assumption by the
successor Person, by supplemental indenture, executed and delivered to the Trustee and the
Collateral Trustee and satisfactory in form to the Trustee and the Collateral Trustee, of the Note
Guarantee endorsed upon the Notes and the due and punctual performance of all of the covenants and
conditions of this Indenture to be performed by the Subsidiary Guarantor, such successor Person
will succeed to and be substituted for the Subsidiary Guarantor with the same effect as if it had
been named herein as a Guarantor. Such successor Person thereupon may cause to be signed any or
all of the Note Guarantees to be endorsed upon all of the Notes issuable hereunder which
theretofore shall not have been signed by the Company and delivered to the Trustee. All the Note
Guarantees so issued will in all respects have the same legal rank and benefit under this Indenture
as the Note Guarantees theretofore and thereafter issued in accordance with the terms of this
Indenture as though all of such Note Guarantees had been issued at the date of the execution
hereof.

     Except as set forth in Articles 4 and 5 hereof, and notwithstanding clauses (1) and (2) of
this Section 10.04, nothing contained in this Indenture or in any of the Notes will prevent any
consolidation or merger of a Subsidiary Guarantor with or into the Company or another Guarantor, or
will prevent any sale or conveyance of the property of a Subsidiary Guarantor as an entirety or
substantially as an entirety to the Company or another Guarantor.

Section 10.05 Releases.

     (a) In the event that any Subsidiary Guarantor ceases to provide a Guarantee or be a direct
obligor of obligations outstanding under the Credit Agreement, such Subsidiary Guarantor will be
automatically released and relieved of any obligations under its Note Guarantee.

     (b) In the event of any sale or other disposition of all or substantially all of the assets of
any Subsidiary Guarantor, by way of merger, consolidation or otherwise, or a sale or other
disposition of Capital Stock of any Subsidiary Guarantor, in each case to a Person that is not
(either before or after giving effect to such transactions) Parent or a Restricted Subsidiary of
Parent, then such Subsidiary Guarantor (in the event of a sale or other disposition, by way of
merger, consolidation or otherwise, of all of the Capital Stock of such Subsidiary Guarantor) or
the corporation acquiring the property (in the event of a sale or other disposition of all or
substantially all of the assets of such Subsidiary Guarantor) will be automatically released and
relieved of any obligations under its Note Guarantee; provided that the Net Proceeds of such sale
or other disposition are applied in accordance with the applicable provisions of this Indenture,
including without limitation Section 4.10 hereof. Upon delivery by Parent to the Trustee of an
Officers’ Certificate and an Opinion of Counsel to the effect that such sale or other disposition
was made by Parent in accordance with the provisions of this Indenture, including without
limitation Section 4.10 hereof, the Trustee will execute any documents reasonably required in order
to evidence the release of any Subsidiary Guarantor from its obligations under its Note Guarantee.

     (c) Upon designation of any Subsidiary Guarantor as an Unrestricted Subsidiary in accordance
with the terms of this Indenture, such Subsidiary Guarantor will be automatically released and
relieved of any obligations under its Note Guarantee.

     (d) Upon Legal Defeasance or Covenant Defeasance in accordance with Article 8 hereof or
satisfaction and discharge of this Indenture in accordance with Article 11 hereof, each Guarantor
will be automatically released and relieved of any obligations under its Note Guarantee.

     Any Subsidiary Guarantor not released from its obligations under its Note Guarantee as
provided in this Section 10.05 will remain liable for the full amount of principal of and interest
(including Special

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Interest, if any) and premium, if any, on the Notes and for the other obligations of any
Guarantor under this Indenture as provided in this Article 10.

ARTICLE 11

SATISFACTION AND DISCHARGE

Section 11.01 Satisfaction and Discharge.

     This Indenture will be discharged and will cease to be of further effect as to all outstanding
Notes issued hereunder, when:

          (1) either:

               (A) all Notes that have been authenticated, except lost, stolen or destroyed
Notes that have been replaced or paid and Notes for whose payment money has
theretofore been deposited in trust and thereafter repaid to the Company, have been
delivered to the Trustee for cancellation; or

               (B) all Notes that have not been delivered to the Trustee for cancellation have
become due and payable by reason of the mailing of a notice of redemption or
otherwise or will become due and payable within one year and the Company or any
Guarantor has irrevocably deposited or caused to be deposited with the Trustee as
trust funds in trust solely for the benefit of the Holders of Notes, cash in U.S.
dollars, non-callable Government Securities, or a combination thereof, in such
amounts as will be sufficient, without consideration of any reinvestment of
interest, to pay and discharge the entire Indebtedness on the Notes not delivered to
the Trustee for cancellation for principal of, premium on, if any, and interest
(including Special Interest, if any) on, the Notes to the date of maturity or
redemption;

     (2) in respect of clause (1)(B) of this Section 11.01, no Default or Event of Default
has occurred and is continuing on the date of such deposit (other than a Default or Event of
Default resulting from the borrowing of funds to be applied to such deposit and any similar
deposit relating to other Indebtedness, in each case, the granting of Liens to secure such
borrowings) and the deposit will not result in a breach or violation of, or constitute a
default under, any other instrument to which the Company or any Guarantor is a party or by
which the Company or any Guarantor is bound (other than with respect to the borrowing of
funds to be applied concurrently to make the deposit required to effect such satisfaction
and discharge and any similar concurrent deposit relating to other Indebtedness, and in each
case the granting of Liens to secure such borrowings);

     (3) the Company or any Guarantor has paid or caused to be paid all sums payable by it
under this Indenture; and

     (4) the Company has delivered irrevocable instructions to the Trustee under this
Indenture to apply the deposited money toward the payment of the Notes at maturity or on the
redemption date, as the case may be.

In addition, the Company must deliver an Officers’ Certificate and an Opinion of Counsel to the
Trustee stating that all conditions precedent to satisfaction and discharge have been satisfied.

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     Notwithstanding the satisfaction and discharge of this Indenture, if money has been deposited
with the Trustee pursuant to clause (1)(B) of this Section 11.01, the provisions of Sections 11.02
and 8.06 hereof will survive. In addition, nothing in this Section 11.01 will be deemed to
discharge those provisions of Section 7.06 hereof, that, by their terms, survive the satisfaction
and discharge of this Indenture.

Section 11.02 Application of Trust Money.

     Subject to the provisions of Section 8.06 hereof, all money deposited with the Trustee
pursuant to Section 11.01 hereof shall be held in trust and applied by it, in accordance with the
provisions of the Notes and this Indenture, to the payment, either directly or through any Paying
Agent (including the Company acting as its own Paying Agent) as the Trustee may determine, to the
Persons entitled thereto, of the principal (and premium, if any) and interest (including Special
Interest, if any) for whose payment such money has been deposited with the Trustee; but such money
need not be segregated from other funds except to the extent required by law.

     If the Trustee or Paying Agent is unable to apply any money or Government Securities in
accordance with Section 11.01 hereof by reason of any legal proceeding or by reason of any order or
judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting
such application, the Company’s and any Guarantor’s obligations under this Indenture and the Notes
shall be revived and reinstated as though no deposit had occurred pursuant to Section 11.01 hereof;
provided that if the Company has made any payment of principal of, premium, if any, or interest
(including Special Interest, if any) on, any Notes because of the reinstatement of its obligations,
the Company shall be subrogated to the rights of the Holders of such Notes to receive such payment
from the money or Government Securities held by the Trustee or Paying Agent.

ARTICLE 12

COLLATERAL AND SECURITY

Section 12.01 Security Interest.

     The due and punctual payment of the principal of, premium (if any), interest and Special
Interest, if any, on, the Notes when and as the same shall be due and payable, whether on an
interest payment date, at maturity, by acceleration, repurchase, redemption or otherwise, and
interest on the overdue principal of, premium (if any), interest and Special Interest, if any, on
the Notes and performance of all other obligations of the Company to the Holders of Notes, the
Collateral Trustee or the Trustee and the Notes, according to the terms hereunder or thereunder,
are secured following the Release Date as provided in the Security Documents. Prior to the release
of the Escrow Property on or after the Release Date, pursuant to the Escrow and Security Agreement,
the Notes will be entitled to the benefits of the Escrow Account, including a security interest in
the rights, if any, of the Company therein. Each Holder, by its acceptance thereof, consents and
agrees to the terms of the Security Documents (including, without limitation, the provisions
providing for foreclosure and release of Collateral by the Collateral Trustee, relating to ranking
of Priority Liens and order of application of proceeds from enforcement of Priority Liens) as the
same may be in effect or may be amended, amended and restated, modified, renewed, restated or
replaced from time to time in accordance with their terms and authorizes and appoints The Bank of
New York Mellon Trust Company, N.A. as the Trustee and Wilmington Trust FSB as the Collateral
Trustee, the Trustee hereby authorizes and appoints Wilmington Trust FSB as Collateral Trustee and
each Holder and the Trustee direct the Collateral Trustee to enter into the Security Documents and
to perform its obligations and exercise its rights thereunder in accordance therewith and to
exercise such powers as are delegated to the Trustee and Collateral Trustee by the terms thereof,
together with such actions and powers as are reasonably incidental thereto. Following the Release
Date, the Company consents and agrees to be bound

106

 

by the terms of the Security Documents, as the same may be in effect from time to time, and
agrees to perform its obligations thereunder in accordance therewith. Each Holder agrees that all
Priority Lien Obligations will be and are secured equally and ratably by all Priority Liens at any
time granted by the Company to secure any Obligations in respect of such Series of Priority Lien
Debt, whether or not upon property otherwise constituting Collateral, and that all such Priority
Liens will be enforceable by the Collateral Trustee for the benefit of all holders of Priority Lien
Obligations. Following the Release Date, promptly upon the reasonable request of the Collateral
Trustee or any Secured Debt Representative at any time and from time to time, the Company will
execute, acknowledge and deliver such Security Documents, instruments, certificates, notices and
other documents, and take such other actions as shall be reasonably required under applicable law,
or that the Collateral Trustee may reasonably request, in each case, to create, perfect, protect,
assure or enforce the Liens and benefits intended to be conferred, in each case as contemplated by
the Priority Lien Documents for the benefit of the Holders of Notes.

Section 12.02 Collateral Trust Agreement.

     This Article 12 and the provisions of each other Security Document are subject to the terms,
conditions and benefits set forth in the Collateral Trust Agreement. The Company consents to, and
agrees to be bound by, the terms of the Collateral Trust Agreement, as the same may be in effect
from time to time, and to perform its obligations thereunder in accordance with the terms
therewith.

Section 12.03 Release of Liens in Respect of the Notes.

     The Collateral Trustee’s Liens upon the Collateral will no longer secure the Notes outstanding
under this Indenture or any other Obligations under this Indenture, and the right of the Holders of
Notes and such Obligations to the benefits and proceeds of the Collateral Trustee’s Liens on the
Collateral will automatically terminate and be discharged:

          (1) upon satisfaction and discharge of this Indenture in accordance with Article 11 hereof;

          (2) upon a Legal Defeasance or Covenant Defeasance of the Notes in accordance with Article 8
hereof;

          (3) upon payment in full and discharge of all Notes outstanding under this Indenture and all
Obligations that are outstanding, due and payable under this Indenture at the time the Notes are
paid in full and discharged; or

          (4) in whole or in part, with the consent of the Holders of the requisite percentage of Notes
in accordance with Article 9 hereof.

     In addition, the Collateral Trustee’s Liens on the Collateral will be released upon the terms
and subject to the conditions set forth in Section 4.1 of the Collateral Trust Agreement.

Section 12.04 Collateral Trustee.

     (a) The Collateral Trustee will hold (directly or through co-trustees or agents) and is
directed by each Holder to so hold, and will be entitled to enforce on behalf of the holders of
Priority Lien Obligations and Junior Lien Obligations (if any), all Liens on the Collateral created
by the Security Documents for their benefit, subject to the provisions of the Collateral Trust
Agreement.

107

 

     (b) Neither the Company nor any of its Affiliates and no Secured Debt Representative may serve
as Collateral Trustee.

     (c) Except as provided in the Collateral Trust Agreement or as directed by an Act of Required
Debtholders in accordance with the Collateral Trust Agreement, the Collateral Trustee will not be
obligated to:

     (1) act upon directions purported to be delivered to it by any Person;

     (2) foreclose upon or otherwise enforce any Lien; or

     (3) take any other action whatsoever with regard to any or all of the Security
Documents, the Liens created thereby or the Collateral.

     (d) The Company and the Guarantors will indemnify the Collateral Trustee against any and all
losses, liabilities or expenses incurred by it arising out of or in connection with this Indenture,
including defending itself against any claim (whether asserted by the Company, the Guarantors, any
Holder or any other Person) or liability in connection with the exercise or performance of any of
its powers or duties hereunder, except to the extent any such loss, liability or expense may be
attributable to (1) its gross negligence, willful misconduct or bad faith or (2) its breach of this
Indenture or any Security Document. The Collateral Trustee will notify the Company promptly of any
claim for which it may seek indemnity. Failure by the Collateral Trustee to so notify the Company
will not relieve the Company or any of the Guarantors of their obligations hereunder. The Company
or such Guarantor will defend the claim and the Collateral Trustee will cooperate in the defense.
The Collateral Trustee may have separate counsel and the Company will pay the reasonable fees and
out-of-pocket expenses of such counsel. Neither the Company nor any Guarantor need pay for any
settlement made without its consent, which consent will not be unreasonably withheld. The
obligations of the Company and the Guarantors under this Section 12.04(d) will survive the
satisfaction and discharge of this Indenture.

ARTICLE 13

MISCELLANEOUS

Section 13.01 Notices.

     Any notice or communication by the Company, any Guarantor, the Collateral Trustee or the
Trustee to the others is duly given if in writing and delivered in Person or by first class mail
(registered or certified, return receipt requested), facsimile transmission or overnight air
courier guaranteeing next day delivery, to the others’ address:

If to the Company and/or any Guarantor:

UAL Corporation

77 W. Wacker Drive

Chicago, IL 60601

Attention: Stephen R. Lieberman, Vice President and Treasurer

With a copy to:

Cravath, Swaine & Moore LLP

Worldwide Plaza

825 Eighth Avenue

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New York, NY 10019-7475

Facsimile No.: (212) 765-0997

Attention: William Fogg

If to the Trustee:

The Bank of New York Mellon Trust Company, N.A.

2 North LaSalle Street, Suite 1020

Chicago, IL 60602

Facsimile No.: (312) 827-8542

Attention: Corporate Trust

With a copy to:

Drinker Biddle & Reath LLP

191 North Wacker Drive, Suite 3700

Chicago, IL 60606

Facsimile No.: (312) 569-3216

Attention: Steven M. Wagner

If to the Collateral Trustee:

Wilmington Trust FSB

50 South Sixth Street, Suite 1290

Minneapolis, MN 55402

Facsimile No.: (612) 217-5651

Attention: Corporate Client Services

With a copy to:

Morris James LLP

500 Delaware Avenue, Suite 1500

Wilmington, DE 19801-1494

Facsimile No.: (302) 888-6989

Attention: Lewis C. Ledyard, III

     The Company, any Guarantor, the Collateral Trustee or the Trustee, by notice to the others,
may designate additional or different addresses for subsequent notices or communications.

     All notices and communications (other than those sent to Holders of Notes) will be deemed to
have been duly given: at the time delivered by hand, if personally delivered; five Business Days
after being deposited in the mail, postage prepaid, if mailed; when receipt acknowledged, if
transmitted by facsimile; and the next Business Day after timely delivery to the courier, if sent
by overnight air courier guaranteeing next day delivery.

     Any notice or communication to a Holder will be mailed by first class mail, certified or
registered, return receipt requested, or by overnight air courier guaranteeing next day delivery to
its address shown on the register kept by the Registrar. Failure to mail a notice or communication
to a Holder or any defect in it will not affect its sufficiency with respect to other Holders of
Notes.

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     If a notice or communication is mailed in the manner provided above within the time
prescribed, it is duly given, whether or not the addressee receives it.

     If the Company mails a notice or communication to Holders of Notes, it will mail a copy to the
Trustee and each Agent at the same time.

Section 13.02 Certificate and Opinion as to Conditions Precedent.

     Upon any request or application by the Company to the Trustee to take any action under this
Indenture, the Company shall furnish to the Trustee:

     (1) an Officers’ Certificate in form and substance reasonably satisfactory to the
Trustee (which must include the statements set forth in Section 13.03 hereof) stating that,
in the opinion of the signers, all conditions precedent and covenants, if any, provided for
in this Indenture relating to the proposed action have been satisfied; and

     (2) an Opinion of Counsel in form and substance reasonably satisfactory to the Trustee
(which must include the statements set forth in Section 13.03 hereof) stating that, in the
opinion of such counsel, all such conditions precedent and covenants have been satisfied.

Section 13.03 Statements Required in Certificate or Opinion.

     Each certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture must include:

     (1) a statement that the Person making such certificate or opinion has read such
covenant or condition;

     (2) a brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinions contained in such certificate or opinion are based;

     (3) a statement that, in the opinion of such Person, he or she has made such
examination or investigation as is necessary to enable him or her to express an informed
opinion as to whether or not such covenant or condition has been complied with; and

     (4) a statement as to whether or not, in the opinion of such Person, such condition or
covenant has been complied with.

Section 13.04 Rules by Trustee and Agents.

     The Trustee may make reasonable rules for action by or at a meeting of Holders of Notes. The
Registrar or Paying Agent may make reasonable rules and set reasonable requirements for its
functions.

Section 13.05 No Personal Liability of Directors, Officers, Employees and Stockholders.

     No director, officer, employee, incorporator or stockholder of the Company or any Guarantor,
as such, will have any liability for any obligations of the Company or the Guarantors under the
Note Documents or for any claim based on, in respect of, or by reason of, such obligations or their
creation. Each Holder by accepting a Note waives and releases all such liability. The waiver and
release are part of the consideration for issuance of the Notes. The waiver may not be effective
to waive liabilities under the federal securities laws.

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Section 13.06 Governing Law.

     THE INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO CONSTRUE THIS INDENTURE,
THE NOTES AND THE NOTE GUARANTEES WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF
LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED
THEREBY.

Section 13.07 No Adverse Interpretation of Other Agreements.

     This Indenture may not be used to interpret any other indenture, loan or debt agreement of
Parent or its Subsidiaries or of any other Person. Any such indenture, loan or debt agreement may
not be used to interpret this Indenture.

Section 13.08 Successors.

     All agreements of the Company in this Indenture and the Notes will bind its successors. All
agreements of the Trustee in this Indenture will bind its successors. All agreements of each
Guarantor in this Indenture will bind its successors, except as otherwise provided in Section 10.05
hereof.

Section 13.09 Severability.

     In case any provision in this Indenture or in the Notes is invalid, illegal or unenforceable,
the validity, legality and enforceability of the remaining provisions will not in any way be
affected or impaired thereby.

Section 13.10 Counterpart Originals.

     The parties may sign any number of copies of this Indenture. Each signed copy will be an
original, but all of them together represent the same agreement.

Section 13.11 Table of Contents, Headings, etc.

     The Table of Contents and Headings of the Articles and Sections of this Indenture have been
inserted for convenience of reference only, are not to be considered a part of this Indenture and
will in no way modify or restrict any of the terms or provisions hereof.

[Signatures on following page]

111

 

SIGNATURES

Dated as of January ___, 2010

	 	 	 	 	 
	 	UNITED AIR LINES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

Indenture Signature Page

	 	 	 	 	 

 

	 	 	 	 	 
	 	UAL CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Indenture Signature Page

 

	 	 	 	 	 	 	 	 	 	 	 
	MPH I, INC.	 	 	 	MILEAGE PLUS, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	

 

Name:
	 	 
	 	By:
	 	

 

Name:
	 	 
	 

	 	Title:
	 	 	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	MILEAGE PLUS MARKETING, INC.	 	 	 	MILEAGE PLUS HOLDINGS, LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	

 

Name:
	 	 
	 	By:
	 	

 

Name:
	 	 
	 

	 	Title:
	 	 	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	UNITED AVIATION FUELS CORPORATION	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	

 

Name:
	 	 	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK MELLON TRUST	 	 
	 	 	     COMPANY, N.A.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	WILMINGTON TRUST FSB, not in its individual	 	 
	 	 	capacity, but solely as Collateral Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

Indenture Signature Page

 

EXHIBIT A
— FORM OF NOTE

[Face of Note]

CUSIP/ISIN                     

9.875% Senior Secured Notes due 2013

			
	 	 	 
	No. ___
	 	$                    

UNITED AIR LINES, INC.

promises to pay to                      or registered assigns,

	 	 	 	 	 
	the principal sum of

	 	

	 	DOLLARS on August 1, 2013.
	 

	 	 	 	 

Interest Payment Dates: February 1 and August 1

Record Dates: January 15 and July 15

Dated:
                    , 20 ___

[Signature Page Follows]

A-1

 

     IN WITNESS WHEREOF, the Company has caused this Note to be signed manually or by facsimile by
its duly authorized officer as of the date first written above.

	 	 	 	 	 
	 	UNITED AIR LINES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

A-2

 

	 	 	 	 	 

This is one of the Notes referred to

in the within-mentioned Indenture:

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,
as Trustee

	 	 	 	 	 
	By:

	 	

 

Authorized Signatory
	 	 

A-3

 

[Back of Note]

9.875% Senior Secured Notes due 2013

[Insert the Global Note Legend, if applicable pursuant to the provisions of the Indenture]

[Insert the Private Placement Legend, if applicable, pursuant to the provisions of the Indenture]

     Capitalized terms used herein have the meanings assigned to them in the Indenture referred to
below unless otherwise indicated.

     (1) Interest. United Air Lines, Inc., a Delaware corporation (the “Company”),
promises to pay interest on the principal amount of this Note at 9.875% per annum from
                    ,
20 ___ until maturity and shall pay the Special Interest, if any, payable
pursuant to Sections 4.10 and 4.20 of the Indenture. The Company will pay interest
semi-annually in arrears on February 1 and August 1 of each year, or if any such day is not
a Business Day, on the next succeeding Business Day (each, an “Interest Payment Date”).
Interest on the Notes will accrue from the most recent date to which interest has been paid
or, if no interest has been paid, from the date of issuance; provided that if there is no
existing Default in the payment of interest, and if this Note is authenticated between a
record date referred to on the face hereof and the next succeeding Interest Payment Date,
interest shall accrue from such next succeeding Interest Payment Date; provided further that
the first Interest Payment Date shall be
                    , 20 ___. The Company will pay interest
(including post-petition interest in any proceeding under any Bankruptcy Law) on overdue
principal and premium, if any, from time to time on demand at a rate that is 1% per annum in
excess of the rate then in effect to the extent lawful; it will pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments
of interest and Special Interest, if any, (without regard to any applicable grace periods)
from time to time on demand at the same rate to the extent lawful. Interest will be
computed on the basis of a 360-day year of twelve 30-day months.

     (2) Method of Payment. The Company will pay interest on the Notes (except
defaulted interest) and Special Interest, if any, to the Persons who are registered Holders
of Notes at the close of business on the January 15 or July 15 next preceding the Interest
Payment Date, even if such Notes are canceled after such record date and on or before such
Interest Payment Date, except as provided in Section 2.12 of the Indenture with respect to
defaulted interest. The Notes will be payable as to principal, premium and Special
Interest, if any, and interest at the office or agency of the Company maintained for such
purpose within or without the City and State of New York, or, at the option of the Company,
payment of interest and Special Interest, if any, may be made by check mailed to the Holders
of Notes at their addresses set forth in the register of Holders of Notes; provided that
payment by wire transfer of immediately available funds will be required with respect to
principal of and interest, premium and Special Interest, if any, on, all Global Notes and
all other Notes the Holders of which will have provided wire transfer instructions to the
Company or the Paying Agent. Such payment will be in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of public and
private debts.

     (3) Paying Agent and Registrar. Initially, The Bank of New York Mellon Trust
Company, N.A., the Trustee under the Indenture, will act as Paying Agent and Registrar. The
Company may change any Paying Agent or Registrar without notice to any Holder. Parent or
any of its Subsidiaries may act in any such capacity.

A-4

 

     (4) Indenture. The Company issued the Notes under an Indenture dated as of
January 15, 2010 (as amended, amended and restated, adjusted, supplemented or otherwise
modified from time to time, the “Indenture”) among the Company, the Guarantors, the Trustee
and the Collateral Trustee. The Notes are subject to all such terms, and Holders of Notes
are referred to the Indenture for a statement of such terms. To the extent any provision of
this Note conflicts with the express provisions of the Indenture, the provisions of the
Indenture shall govern and be controlling. The Notes are secured obligations of the
Company. Prior to the release of the Escrow Property on or after the Release Date, pursuant
to the Escrow and Security Agreement, the Notes will be entitled to the benefits of the
Escrow Account, including a security interest in the rights, if any, of the Company therein
and a security interest in the Company’s rights under the Escrow and Security Agreement.
Following the Release Date, the Notes and all other Priority Lien Obligations will be
secured, equally and ratably, by a Priority Lien on all assets of the Company that
constitute Collateral, subject to Permitted Liens. Following the Release Date, the Notes
are secured by a pledge of Collateral pursuant to the Security Documents referred to in the
Indenture. The Indenture does not limit the aggregate principal amount of Notes that may be
issued thereunder.

     (5) Optional Redemption.

     (b) Except as set forth in subparagraphs (b), (c) and (d) of this Paragraph 5, the Notes will
not be redeemable at the Company’s option prior to February 1, 2012. On or after February 1, 2012,
the Company may on any one or more occasions redeem all or a part of the Notes , subject to the
provisions of Section 3.03 of the Indenture, at the redemption prices (expressed as percentages of
principal amount on the date of redemption), plus accrued and unpaid interest and Special Interest,
if any, on the Notes redeemed to the applicable date of redemption, if redeemed during the 12-month
period beginning on February 1 of the years set forth below, subject to the rights of Holders of
Notes on the relevant record date to receive interest on the relevant interest payment date:

	 	 	 	 	 
	Period	 	Percentage	 
	2012
	 	 	107.406	%
	2013 and thereafter
	 	 	100.000	%

     Unless the Company defaults in the payment of the redemption price, interest will cease to
accrue on the Notes or portions thereof called for redemption on the applicable redemption date.

     (c) At any time prior to February 1, 2012, the Company may on any one or more occasions redeem
up to 35% of the aggregate principal amount of Notes issued under the Indenture, subject to the
provisions of Section 3.03 of the Indenture, at a redemption price equal to 109.875% of the
aggregate principal amount thereof, plus accrued and unpaid interest and Special Interest, if any,
to the date of redemption (subject to the rights of the Holders of Notes on the relevant record
date to receive interest on the relevant interest payment date), with the net cash proceeds of an
Equity Offering by the Company; provided that at least 50% of the aggregate principal amount of
Notes originally issued under the Indenture (excluding Notes held by Parent and its Subsidiaries)
remains outstanding immediately after the occurrence of such redemption and that such redemption
occurs within 90 days of the date of the closing of such Equity Offering.

     (d) At any time prior to February 1, 2012, the Company may on any one or more occasions redeem
all or a part of the Notes, subject to the provisions of Section 3.03 of the Indenture, at a
redemption price equal to 100% of the principal amount of Notes redeemed, plus the Applicable
Premium as of, and accrued and unpaid interest and Special Interest, if any, to the date of
redemption, subject to the

A-5

 

rights of Holders of Notes on the relevant record date to receive interest due on the relevant
interest payment date.

     (e) At any time and from time to time prior to February 1, 2013, the Company may redeem a
portion of the Notes, subject to the provisions of Section 3.03 of the Indenture, at a redemption
price of 103% of the principal amount thereof, plus accrued and unpaid interest and Special
Interest, if any, to the applicable date of redemption, subject to the rights of Holders of Notes
on the relevant record date to receive interest due on the relevant interest payment date; provided
that in no event may the Company redeem more than 10% of the original aggregate principal amount of
the Initial Notes during any twelve-month period.

          (6) Special Scheduled Maturity Date.

     Except as described in the next succeeding paragraph, the Company is not required to make
mandatory redemption, sinking fund or other scheduled payments of principal with respect to the
Notes. However, the Company may be required to offer to purchase the notes as described in
Sections 4.10 and 4.15 of the Indenture.

     If the Escrow Conditions have not been satisfied on or prior to the 120th day following the
date of the Indenture, the Company will redeem all of the outstanding Notes on or prior to the
135th day following the date of the Indenture, upon not less than 10 days’ notice and pursuant to
the terms of the Escrow and Security Agreement, at the Special Scheduled Maturity Date Price.
Immediately upon receipt by the Paying Agent of the Escrow Property, the Trustee will notify the
Holders of the date fixed for the Special Scheduled Maturity Date.

          (7) Repurchase at the Option of Holder.

          (a) Upon the occurrence of a Change of Control, each Holder of Notes will have the
right to require the Company to make an offer (a “Change of Control Offer”) to each Holder
to repurchase all or any part (equal to $2,000 or an integral multiple of $1,000 in excess
thereof) of that Holder’s Notes at a purchase price in cash equal to 101% of the aggregate
principal amount of Notes repurchased, plus accrued and unpaid interest and Special
Interest, if any, on the Notes repurchased to the date of purchase, subject to the rights of
Holders of Notes on the relevant record date to receive interest due on the relevant
interest payment date (the “Change of Control Payment”). Within 30 days following any
Change of Control, the Company will mail a notice to each Holder setting forth the
procedures governing the Change of Control Offer as required by the Indenture.

          (b) In accordance with Section 4.10 of the Indenture, the Company will be required to
offer to purchase the Notes upon certain Asset Sales.

     (8) Notice of Redemption. Subject to Section 6 above, notice of redemption
will be mailed at least 30 days but not more than 60 days before the redemption date to each
Holder whose Notes are to be redeemed at its registered address, except that redemption
notices may be mailed more than 60 days prior to a redemption date if the notice is issued
in connection with a defeasance of the Notes or a satisfaction or discharge of the
Indenture. Notes in denominations larger than $2,000 may be redeemed in part but only in
integral multiples of $1,000 in excess thereof, unless all of the Notes held by a Holder are
to be redeemed.

     (9) Denominations, Transfer, Exchange. The Notes are in registered form
without coupons in denominations of $2,000 and integral multiples of $1,000 in excess
thereof.

A-6

 

The transfer of Notes may be registered and Notes may be exchanged as provided in the
Indenture. The Registrar and the Trustee may require a Holder, among other things, to
furnish appropriate endorsements and transfer documents and the Company may require a Holder
to pay any taxes and fees required by law or permitted by the Indenture. The Company need
not exchange or register the transfer of any Note or portion of a Note selected for
redemption, except for the unredeemed portion of any Note being redeemed in part. Also, the
Company need not exchange or register the transfer of any Notes for a period of 15 days
before a selection of Notes to be redeemed or during the period between a record date and
the corresponding Interest Payment Date.

     (10) Persons Deemed Owners. The registered Holder may be treated as its owner
for all purposes.

     (11) Note Guarantees. This Note will be entitled to the benefits of certain
Note Guarantees made for the benefit of the Holders. Reference is hereby made to the
Indenture for a statement of the respective rights, limitations of rights, duties and
obligations thereunder of the Guarantors, the Trustee and the Holders.

     (12) Amendment, Supplement and Waiver. The provisions governing amendment,
supplement and waiver of any provision of the Indenture, the Notes or the Note Guarantees
are set forth in Article 9 of the Indenture.

     (13) Defaults and Remedies. The Events of Default relating to the Notes are
defined in Section 6.01 of the Indenture.

     (14) Trustee Dealings with Company. The Trustee, in its individual or any
other capacity, may make loans to, accept deposits from, and perform services for the
Company or its Affiliates, and may otherwise deal with the Company or its Affiliates, as if
it were not the Trustee.

     (15) No Recourse Against Others. A director, officer, employee, incorporator
or stockholder of the Company or any of the Guarantors, as such, will not have any liability
for any obligations of the Company or the Guarantors under the Note Documents or for any
claim based on, in respect of, or by reason of, such obligations or their creation. Each
Holder by accepting a Note waives and releases all such liability. The waiver and release
are part of the consideration for the issuance of the Notes.

     (16) Authentication. This Note will not be valid until authenticated by the
manual signature of the Trustee or an authenticating agent.

     (17) Abbreviations. Customary abbreviations may be used in the name of a
Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the
entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in
common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

     (18) CUSIP Numbers. Pursuant to a recommendation promulgated by the Committee
on Uniform Security Identification Procedures, the Company has caused CUSIP numbers to be
printed on the Notes, and the Trustee may use CUSIP numbers in notices of redemption as a
convenience to Holders of Notes. No representation is made as to the accuracy of such
numbers either as printed on the Notes or as contained in any notice of redemption, and
reliance may be placed only on the other identification numbers placed thereon.

A-7

 

     (19) GOVERNING LAW. THE INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN AND
BE USED TO CONSTRUE THE INDENTURE, THIS NOTE AND THE NOTE GUARANTEES WITHOUT GIVING EFFECT
TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS
OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

     The Company will furnish to any Holder upon written request and without charge a copy of the
Indenture. Requests may be made to:

UAL Corporation

77 W. Wacker Drive

Chicago, IL 60601

Attention: Stephen R. Lieberman, Vice President and Treasure

A-8

 

Assignment Form

     To assign this Note, fill in the form below:

	 	 	 	 	 
	(I) or (we) assign and transfer this Note to:
	 	 	 	 
	 

	 	 

	 

	 	(Insert assignee’s legal name)	 	 

 

(Insert assignee’s soc. sec. or tax I.D. no.)

 

 

 

 

(Print or type assignee’s name, address and zip code)

	 	 	 
	and irrevocably appoint

	to transfer this Note on the books of the Company. The agent may substitute another to act for
him.

Date:                                         

	 	 	 	 	 
	 

	 	Your Signature: 

	 	 	     
      (Sign exactly as your name appears on the face of this Note)

Signature Guarantee*:                                                             

 

			
	*	 	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor
acceptable to the Trustee).

A-9

 

Option of Holder to Elect Purchase

     If you want to elect to have this Note purchased by the Company pursuant to Section 4.10
or 4.15 of the Indenture, check the appropriate box below:

	 	 	 
	ŇSection 4.10
	 	ŇSection 4.15

     If you want to elect to have only part of the Note purchased by the Company pursuant to
Section 4.10 or Section 4.15 of the Indenture, state the amount you elect to have purchased:

$                                        

Date:                                         

	 	 	 	 	 
	 

	 	Your Signature: 

	 	 	    
         (Sign exactly as your name appears on the face of this Note)
	 
	 	 	 	 
	 

	 	Tax Identification No.: 

Signature Guarantee*:                                                             

 

			
	*	 	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor
acceptable to the Trustee).

A-10

 

Schedule of Exchanges of Interests in the Global Note *

     The following exchanges of a part of this Global Note for an interest in another Global
Note or for a Definitive Note, or exchanges of a part of another Global Note or Definitive Note for
an interest in this Global Note, have been made:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Principal Amount	 	 	 	 
	 	 	 	 	Amount of decrease in	 	 	Amount of increase in	 	 	[at maturity] of this	 	 	 	 
	 	 	 	 	Principal Amount	 	 	Principal Amount	 	 	Global Note following	 	 	Signature of authorized	 
	 	 	 	 	[at maturity] of	 	 	[at maturity] of	 	 	such decrease	 	 	officer of Trustee or	 
	Date of Exchange	 	 	this Global Note	 	 	this Global Note	 	 	(or increase)	 	 	Custodian	 

 

			
	*	 	This schedule should be included only if the Note is issued in global form.

A-11

 

EXHIBIT B

FORM OF CERTIFICATE OF TRANSFER

UAL Corporation

77 W. Wacker Drive

Chicago, IL 60601

Attention: Stephen R. Lieberman, Vice President and Treasurer

The Bank of New York Mellon Trust Company, N.A.

2 North LaSalle Street, Suite 1020

Chicago, IL 60602

Facsimile No.: (312) 827-8542

Attention: Corporate Trust

     Re: 9.875% Senior Secured Notes due 2013

     Reference is hereby made to the Indenture, dated as of January 15, 2010 (the “Indenture”),
among United Air Lines, Inc., as issuer (the “Company”), the Guarantors party thereto, The Bank of
New York Mellon Trust Company, N.A., as trustee and Wilmington Trust FSB, as collateral trustee.
Capitalized terms used but not defined herein shall have the meanings given to them in the
Indenture.

                                             , (the “Transferor”) owns and proposes to transfer the Note[s] or interest
in such Note[s] specified in Annex A hereto, in the principal amount of $                     in such
Note[s] or interests (the “Transfer”), to                                          (the “Transferee”), as
further specified in Annex A hereto. In connection with the Transfer, the Transferor hereby
certifies that:

[CHECK ALL THAT APPLY]

     1. o Check if Transferee will take delivery of a beneficial interest in the 144A
Global Note or a Restricted Definitive Note pursuant to Rule 144A. The Transfer is being
effected pursuant to and in accordance with Rule 144A under the Securities Act of 1933, as amended
(the “Securities Act”), and, accordingly, the Transferor hereby further certifies that the
beneficial interest or Definitive Note is being transferred to a Person that the Transferor
reasonably believes is purchasing the beneficial interest or Definitive Note for its own account,
or for one or more accounts with respect to which such Person exercises sole investment discretion,
and such Person and each such account is a “qualified institutional buyer” within the meaning of
Rule 144A in a transaction meeting the requirements of Rule 144A, and such Transfer is in
compliance with any applicable blue sky securities laws of any state of the United States. Upon
consummation of the proposed Transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Note will be subject to the restrictions on transfer
enumerated in the Private Placement Legend printed on the 144A Global Note and/or the Restricted
Definitive Note and in the Indenture and the Securities Act.

     2. o Check if Transferee will take delivery of a beneficial interest in the
Regulation S Global Note or a Restricted Definitive Note pursuant to Regulation S. The
Transfer is being effected pursuant to and in accordance with Rule 903 or Rule 904 under the
Securities Act and, accordingly, the Transferor hereby further certifies that (i) the Transfer is
not being made to a Person in the United States and (x) at the time the buy order was originated,
the Transferee was outside the United States or such Transferor and any Person acting on its behalf
reasonably believed and believes that the Transferee was outside the United States or (y) the
transaction was executed in, on or through the facilities of a designated offshore securities
market and neither such Transferor nor any Person acting on its behalf knows that the transaction
was prearranged with a buyer in the United States, (ii) no directed selling

B-1 

 

efforts have been made in contravention of the requirements of Rule 903(b) or Rule 904(b) of
Regulation S under the Securities Act, (iii) the transaction is not part of a plan or scheme to
evade the registration requirements of the Securities Act and (iv) if the proposed transfer is
being made prior to the expiration of the Restricted Period, the transfer is not being made to a
U.S. Person or for the account or benefit of a U.S. Person (other than an Initial Purchaser). Upon
consummation of the proposed transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Note will be subject to the restrictions on Transfer
enumerated in the Private Placement Legend printed on the Legended Regulation S Global Note and/or
the Restricted Definitive Note and in the Indenture and the Securities Act.

     3. o Check and complete if Transferee will take delivery of a beneficial interest
in a Restricted Definitive Note pursuant to any provision of the Securities Act other than Rule
144A or Regulation S. The Transfer is being effected in compliance with the transfer
restrictions applicable to beneficial interests in Restricted Global Notes and Restricted
Definitive Notes and pursuant to and in accordance with the Securities Act and any applicable blue
sky securities laws of any state of the United States, and accordingly the Transferor hereby
further certifies that (check one):

     (a) o such Transfer is being effected pursuant to and in accordance with Rule
144 under the Securities Act;

or

     (b) o such Transfer is being effected to the Company or a subsidiary thereof;

or

     (c) o such Transfer is being effected to an Institutional Accredited Investor
and pursuant to an exemption from the registration requirements of the Securities Act
other than Rule 144A, Rule 144, Rule 903 or Rule 904, and the Transferor hereby further
certifies that it has not engaged in any general solicitation within the meaning of
Regulation D under the Securities Act and the Transfer complies with the transfer
restrictions applicable to beneficial interests in a Restricted Global Note or Restricted
Definitive Notes and the requirements of the exemption claimed, which certification is
supported by (1) a certificate executed by the Transferee in the form of Exhibit D to the
Indenture and (2) an Opinion of Counsel provided by the Transferor or the Transferee (a
copy of which the Transferor has attached to this certification), to the effect that such
Transfer is in compliance with the Securities Act. Upon consummation of the proposed
transfer in accordance with the terms of the Indenture, the transferred beneficial
interest or Definitive Note will be subject to the restrictions on transfer enumerated in
the Private Placement Legend printed on the Restricted Definitive Notes and in the
Indenture and the Securities Act.

     4. o Check if Transferee will take delivery of a beneficial interest in an
Unrestricted Global Note or of an Unrestricted Definitive Note.

     (a) o Check if Transfer is pursuant to Rule 144. (i) The Transfer is being effected
pursuant to and in accordance with Rule 144 under the Securities Act and in compliance with the
transfer restrictions contained in the Indenture and any applicable blue sky securities laws of any
state of the United States and (ii) the restrictions on transfer contained in the Indenture and the
Private Placement Legend are not required in order to maintain compliance with the Securities Act.
Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Note will no longer be subject to the restrictions on
transfer enumerated in the Private

B-2 

 

Placement Legend printed on the Restricted Global Notes, on Restricted Definitive Notes and in
the Indenture.

     (b) o Check if Transfer is Pursuant to Regulation S. (i) The Transfer is being
effected pursuant to and in accordance with Rule 903 or Rule 904 under the Securities Act and in
compliance with the transfer restrictions contained in the Indenture and any applicable blue sky
securities laws of any state of the United States and (ii) the restrictions on transfer contained
in the Indenture and the Private Placement Legend are not required in order to maintain compliance
with the Securities Act. Upon consummation of the proposed Transfer in accordance with the terms
of the Indenture, the transferred beneficial interest or Definitive Note will no longer be subject
to the restrictions on transfer enumerated in the Private Placement Legend printed on the
Restricted Global Notes, on Restricted Definitive Notes and in the Indenture.

     (c) o Check if Transfer is Pursuant to Other Exemption. (i) The Transfer is being
effected pursuant to and in compliance with an exemption from the registration requirements of the
Securities Act other than Rule 144, Rule 903 or Rule 904 and in compliance with the transfer
restrictions contained in the Indenture and any applicable blue sky securities laws of any State of
the United States and (ii) the restrictions on transfer contained in the Indenture and the Private
Placement Legend are not required in order to maintain compliance with the Securities Act. Upon
consummation of the proposed Transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Note will not be subject to the restrictions on
transfer enumerated in the Private Placement Legend printed on the Restricted Global Notes or
Restricted Definitive Notes and in the Indenture.

     This certificate and the statements contained herein are made for your benefit and the benefit
of the Company.

	 	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	[Insert Name of Transferor]
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	Dated:                                         
	 	 	 	 	 	 

B-3 

 

ANNEX A TO CERTIFICATE OF TRANSFER

     1. The Transferor owns and proposes to transfer the following:

[CHECK ONE OF (a) OR (b)]

	 	(a)	 	o a beneficial interest in the:

	 	(i)	 	o 144A Global Note (CUSIP                     ), or
	 
	 	(ii)	 	o Regulation S Global Note (CUSIP                     ), or

	 	(b)	 	o a Restricted Definitive Note.

     2. After the Transfer the Transferee will hold:

[CHECK ONE]

	 	(a)	 	o a beneficial interest in the:

	 	(i)	 	o 144A Global Note (CUSIP                     ), or
	 
	 	(ii)	 	o Regulation S Global Note (CUSIP                     ), or
	 
	 	(iii)	 	o Unrestricted Global Note (CUSIP                     ); or

	 	(b)	 	o a Restricted Definitive Note; or

	 	(c)	 	o an Unrestricted Definitive Note,

in accordance with the terms of the Indenture.

B-4 

 

EXHIBIT C

FORM OF CERTIFICATE OF EXCHANGE

UAL Corporation

77 W. Wacker Drive

Chicago, IL 60601

Attention: Stephen R. Lieberman, Vice President and Treasurer

The Bank of New York Mellon Trust Company, N.A.

2 North LaSalle Street, Suite 1020

Chicago, IL 60602

Facsimile No.: (312) 827-8542

Attention: Corporate Trust

     Re: 9.875% Senior Secured Notes due 2013

(CUSIP                     )

     Reference is hereby made to the Indenture, dated as of January 15, 2010 (the “Indenture”),
among United Air Lines, Inc., as issuer (the “Company”), the Guarantors party thereto, The Bank of
New York Mellon Trust Company, N.A., as trustee and Wilmington Trust FSB, as collateral trustee.
Capitalized terms used but not defined herein shall have the meanings given to them in the
Indenture.

                                             , (the “Owner”) owns and proposes to exchange the Note[s] or
interest in such Note[s] specified herein, in the principal amount of $                     in such Note[s]
or interests (the “Exchange”). In connection with the Exchange, the Owner hereby certifies that:

     1. Exchange of Restricted Definitive Notes or Beneficial Interests in a Restricted Global
Note for Unrestricted Definitive Notes or Beneficial Interests in an Unrestricted Global Note

     (a) o Check if Exchange is from beneficial interest in a Restricted Global Note to
beneficial interest in an Unrestricted Global Note. In connection with the Exchange of the Owner’s
beneficial interest in a Restricted Global Note for a beneficial interest in an Unrestricted Global
Note in an equal principal amount, the Owner hereby certifies (i) the beneficial interest is being
acquired for the Owner’s own account without transfer, (ii) such Exchange has been effected in
compliance with the transfer restrictions applicable to the Global Notes and pursuant to and in
accordance with the Securities Act of 1933, as amended (the “Securities Act”), (iii) the
restrictions on transfer contained in the Indenture and the Private Placement Legend are not
required in order to maintain compliance with the Securities Act and (iv) the beneficial interest
in an Unrestricted Global Note is being acquired in compliance with any applicable blue sky
securities laws of any state of the United States.

     (b) o Check if Exchange is from beneficial interest in a Restricted Global Note to
Unrestricted Definitive Note. In connection with the Exchange of the Owner’s beneficial interest
in a Restricted Global Note for an Unrestricted Definitive Note, the Owner hereby certifies (i) the
Definitive Note is being acquired for the Owner’s own account without transfer, (ii) such Exchange
has been effected in compliance with the transfer restrictions applicable to the Restricted Global
Notes and pursuant to and in accordance with the Securities Act, (iii) the restrictions on transfer
contained in the Indenture and the Private Placement Legend are not required in order to maintain
compliance with the Securities Act and (iv) the Definitive Note is being acquired in compliance
with any applicable blue sky securities laws of any state of the United States.

C-1 

 

     (c) o Check if Exchange is from Restricted Definitive Note to beneficial interest in an
Unrestricted Global Note. In connection with the Owner’s Exchange of a Restricted Definitive Note
for a beneficial interest in an Unrestricted Global Note, the Owner hereby certifies (i) the
beneficial interest is being acquired for the Owner’s own account without transfer, (ii) such
Exchange has been effected in compliance with the transfer restrictions applicable to Restricted
Definitive Notes and pursuant to and in accordance with the Securities Act, (iii) the restrictions
on transfer contained in the Indenture and the Private Placement Legend are not required in order
to maintain compliance with the Securities Act and (iv) the beneficial interest is being acquired
in compliance with any applicable blue sky securities laws of any state of the United States.

     (d) o Check if Exchange is from Restricted Definitive Note to Unrestricted Definitive
Note. In connection with the Owner’s Exchange of a Restricted Definitive Note for an Unrestricted
Definitive Note, the Owner hereby certifies (i) the Unrestricted Definitive Note is being acquired
for the Owner’s own account without transfer, (ii) such Exchange has been effected in compliance
with the transfer restrictions applicable to Restricted Definitive Notes and pursuant to and in
accordance with the Securities Act, (iii) the restrictions on transfer contained in the Indenture
and the Private Placement Legend are not required in order to maintain compliance with the
Securities Act and (iv) the Unrestricted Definitive Note is being acquired in compliance with any
applicable blue sky securities laws of any state of the United States.

     2. Exchange of Restricted Definitive Notes or Beneficial Interests in Restricted Global
Notes for Restricted Definitive Notes or Beneficial Interests in Restricted Global Notes

     (a) o Check if Exchange is from beneficial interest in a Restricted Global Note to
Restricted Definitive Note. In connection with the Exchange of the Owner’s beneficial interest in
a Restricted Global Note for a Restricted Definitive Note with an equal principal amount, the Owner
hereby certifies that the Restricted Definitive Note is being acquired for the Owner’s own account
without transfer. Upon consummation of the proposed Exchange in accordance with the terms of the
Indenture, the Restricted Definitive Note issued will continue to be subject to the restrictions on
transfer enumerated in the Private Placement Legend printed on the Restricted Definitive Note and
in the Indenture and the Securities Act.

     (b) o Check if Exchange is from Restricted Definitive Note to beneficial interest in a
Restricted Global Note. In connection with the Exchange of the Owner’s Restricted Definitive Note
for a beneficial interest in the [CHECK ONE] o 144A Global Note or o Regulation S
Global Note with an equal principal amount, the Owner hereby certifies (i) the beneficial interest
is being acquired for the Owner’s own account without transfer and (ii) such Exchange has been
effected in compliance with the transfer restrictions applicable to the Restricted Global Notes and
pursuant to and in accordance with the Securities Act, and in compliance with any applicable blue
sky securities laws of any state of the United States. Upon consummation of the proposed Exchange
in accordance with the terms of the Indenture, the beneficial interest issued will be subject to
the restrictions on transfer enumerated in the Private Placement Legend printed on the relevant
Restricted Global Note and in the Indenture and the Securities Act.

C-2 

 

     This certificate and the statements contained herein are made for your benefit and the benefit
of the Company.

	 	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	[Insert Name of Transferor]
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	Dated:                                         
	 	 	 	 	 	 

C-3 

 

EXHIBIT D

FORM OF CERTIFICATE FROM

ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR

UAL Corporation

77 W. Wacker Drive

Chicago, IL 60601

Attention: Stephen R. Lieberman, Vice President and Treasurer

The Bank of New York Mellon Trust Company, N.A.

2 North LaSalle Street, Suite 1020

Chicago, IL 60602

Facsimile No.: (312) 827-8542

Attention: Corporate Trust

			
	      Re:	 	9.875% Senior Secured Notes due 2013

     Reference is hereby made to the Indenture, dated as of January 15, 2010 (the “Indenture”),
among United Air Lines, Inc., as issuer (the “Company”), the Guarantors party thereto, The Bank of
New York Mellon Trust Company, N.A., as trustee and Wilmington Trust FSB, as collateral trustee.
Capitalized terms used but not defined herein shall have the meanings given to them in the
Indenture.

     In
connection with our proposed purchase of $                     aggregate principal amount of:

     (a) o a beneficial interest in a Global Note, or

     (b) o a Definitive Note,

     we confirm that:

     1. We understand that any subsequent transfer of the Notes or any interest therein is subject
to certain restrictions and conditions set forth in the Indenture and the undersigned agrees to be
bound by, and not to resell, pledge or otherwise transfer the Notes or any interest therein except
in compliance with, such restrictions and conditions and the Securities Act of 1933, as amended
(the “Securities Act”).

     2. We understand that the offer and sale of the Notes have not been registered under the
Securities Act, and that the Notes and any interest therein may not be offered or sold except as
permitted in the following sentence. We agree, on our own behalf and on behalf of any accounts for
which we are acting as hereinafter stated, that if we should sell the Notes or any interest
therein, we will do so only (A) to the Company or any subsidiary thereof, (B) in accordance with
Rule 144A under the Securities Act to a “qualified institutional buyer” (as defined therein), (C)
to an institutional “accredited investor” (as defined below) that, prior to such transfer,
furnishes (or has furnished on its behalf by a U.S. broker-dealer) to you and to the Company a
signed letter substantially in the form of this letter and an Opinion of Counsel in form reasonably
acceptable to the Company to the effect that such transfer is in compliance with the Securities
Act, (D) outside the United States in accordance with Rule 904 of Regulation S under the Securities
Act, (E) pursuant to the provisions of Rule 144 under the Securities Act or (F) pursuant to an
effective registration statement under the Securities Act, and we further agree to provide to any
Person purchasing the Definitive Note or beneficial interest in a Global Note from us in a
transaction meeting the requirements of clauses (A) through (E) of this paragraph a notice advising
such purchaser that resales thereof are restricted as stated herein.

D-1

 

     3. We understand that, on any proposed resale of the Notes or beneficial interest therein, we
will be required to furnish to you and the Company such certifications, legal opinions and other
information as you and the Company may reasonably require to confirm that the proposed sale
complies with the foregoing restrictions. We further understand that the Notes purchased by us
will bear a legend to the foregoing effect.

     4. We are an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or
(7) of Regulation D under the Securities Act) and have such knowledge and experience in financial
and business matters as to be capable of evaluating the merits and risks of our investment in the
Notes, and we and any accounts for which we are acting are each able to bear the economic risk of
our or its investment.

     5. We are acquiring the Notes or beneficial interest therein purchased by us for our own
account or for one or more accounts (each of which is an institutional “accredited investor”) as to
each of which we exercise sole investment discretion.

     You and the Company are entitled to rely upon this letter and are irrevocably authorized to
produce this letter or a copy hereof to any interested party in any administrative or legal
proceedings or official inquiry with respect to the matters covered hereby.

	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	     [Insert Name of Accredited Investor]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

Dated:                                                             

D-2

 

EXHIBIT E

FORM OF NOTATION OF GUARANTEE

     For value received, each of the undersigned (including any successor Person under the
Indenture) hereby, jointly and severally, unconditionally guarantees, to the extent set forth in
the Indenture and subject to the provisions in the Indenture dated as of January 15, 2010 (the
“Indenture”) among United Air Lines, Inc., (the “Company”), the Guarantors party thereto, The Bank
of New York Mellon Trust Company, N.A., as trustee (the “Trustee”) and Wilmington Trust FSB, as
collateral trustee, (a) the due and punctual payment of the principal of, premium, if any, and
interest (including Special Interest, if any) on, the Notes, whether at maturity, by acceleration,
redemption or otherwise, the due and punctual payment of interest on overdue principal of and
interest on the Notes, if any, if lawful, and the due and punctual performance of all other
obligations of the Company to the Holders of Notes or the Trustee all in accordance with the terms
of the Indenture and (b) in case of any extension of time of payment or renewal of any Notes or any
of such other obligations, that the same will be promptly paid in full when due or performed in
accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration
or otherwise. This Note Guarantee will become effective in accordance with Article 10 of the
Indenture and its terms shall be evidenced therein. Each Holder of a Note, by accepting the same,
(a) agrees to and shall be bound by such provisions and (b) appoints the Trustee attorney-in-fact
of such Holder for such purpose.

     Capitalized terms used but not defined herein have the meanings given to them in the
Indenture.

[Signature Page Follows]

E-1

 

     IN WITNESS HEREOF, each Guarantor has caused this Notation of Guarantee to be signed manually
or by facsimile by its duly authorized officer.

	 	 	 	 	 	 	 
	 	 	[Name of Guarantor(s)]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

E-2

 

EXHIBIT F

[FORM OF SUPPLEMENTAL INDENTURE

TO BE DELIVERED BY SUBSEQUENT GUARANTORS]

     Supplemental Indenture (this “Supplemental Indenture”), dated as of                                         ,
20___, among                                          (the “Guaranteeing Subsidiary”), a subsidiary of UAL Corporation (or
its permitted successor), a Delaware corporation (the “Parent”), United Air Lines, Inc. (or its
permitted successor), a Delaware corporation (the “Company”), the other Guarantors (as defined in
the Indenture referred to herein) and The Bank of New York Mellon Trust Company, N.A., as trustee
under the Indenture referred to below (the “Trustee”) and Wilmington Trust FSB, as collateral
trustee under the Indenture referred to below.

W I T N E S S E T H

     WHEREAS, the Company has heretofore executed and delivered to the Trustee an indenture (the
“Indenture”), dated as of January 15, 2010 providing for the issuance of 9.875% Senior Secured
Notes due 2013 (the “Notes”);

     WHEREAS, the Indenture provides that under certain circumstances the Guaranteeing Subsidiary
shall execute and deliver to the Trustee a supplemental indenture pursuant to which the
Guaranteeing Subsidiary shall unconditionally guarantee all of the Company’s Obligations under the
Notes and the Indenture on the terms and conditions set forth herein (the “Note Guarantee”); and

     WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee is authorized to execute and
deliver this Supplemental Indenture.

     NOW, THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the Guaranteeing Subsidiary and the
Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of Notes as
follows:

     1. Capitalized Terms. Capitalized terms used herein without definition shall have
the meanings assigned to them in the Indenture.

     2. Agreement to Guarantee. The Guaranteeing Subsidiary hereby agrees to provide an
unconditional Guarantee on the terms and subject to the conditions set forth in the Note Guarantee
and in the Indenture including but not limited to Article 10 thereof.

     4. No Recourse Against Others. No past, present or future director, officer,
employee, incorporator, stockholder or agent of the Guaranteeing Subsidiary, as such, shall have
any liability for any obligations of the Company or any Guaranteeing Subsidiary under the Notes,
any Note Guarantees, the Indenture or this Supplemental Indenture or for any claim based on, in
respect of, or by reason of, such obligations or their creation. Each Holder by accepting a Note
waives and releases all such liability. The waiver and release are part of the consideration for
issuance of the Notes. Such waiver may not be effective to waive liabilities under the federal
securities laws and it is the view of the SEC that such a waiver is against public policy.

     5. NEW YORK LAW TO GOVERN. THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED
TO CONSTRUE THIS SUPPLEMENTAL INDENTURE WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS
OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED
THEREBY.

F-1

 

     6. Counterparts. The parties may sign any number of copies of this Supplemental
Indenture. Each signed copy shall be an original, but all of them together represent the same
agreement.

     7. Effect of Headings. The Section headings herein are for convenience only and
shall not affect the construction hereof.

     8. The Trustee. The Trustee shall not be responsible in any manner whatsoever for or
in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of
the recitals contained herein, all of which recitals are made solely by the Guaranteeing Subsidiary
and the Company.

F-2

 

     IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly
executed and attested, all as of the date first above written.

     Dated:                                                             , 20  
                  

	 	 	 	 	 	 	 
	 	 	[Guaranteeing Subsidiary]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	[Company]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	[Existing Guarantors]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	[Trustee],	 	 
	 	 	     as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Authorized Signatory
	 	 
	 
	 	 	 	 	 	 
	 	 	[Collateral Trustee],	 	 
	 	 	     as Collateral Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Authorized Signatory
	 	 

F-3

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